Smart v. State

Summary

The court held that DHSS's notice of its Medicaid recoupment decision was constitutionally inadequate because it did not timely disclose the amount to be recouped, the basis for the extrapolation, or sufficient information about the right to appeal. Because the defective notice prevented the administrative-review period from commencing, Smart's failure to exhaust administrative remedies did not bar her due process claims, and the case was remanded for a new opportunity to seek administrative review. The court also held that DHSS's audit Protocol was an implementation tool and not a regulation requiring promulgation under the APA.