Aff'd in part, vacated in part, 816 F.2d 796 (1st Cir.1987), cert. granted, Bowen v. Massachusetts, 484 U.S. 1003, 108 S.Ct. 693, 98 L.Ed.2d 645 (1988), aff'd in part, rev'd in part, Bowen v. Massachusetts, 487 U.S. 879, 108 S.Ct. 2722, 101 L.Ed.2d 749 (1988). State entitled to reimbursement from medicaid for "habilitative services" even though services were provided by state's Department of Education and "educational activities" are not reimbursable.

Contemp action. Mass. Department of Public Welfare's (now called Department of Transitional Assistance) policy of automatic termination of Medicaid when AFDC or SSI benefits declared invalid. DPW may not terminate the Medicaid benefits of any recipient whose AFDC or SSI benefits have been or are about to be terminated, unless and until it has first: (a) Determined on the basis of facts in the recipient's case file that the recipient no longer meets the eligibility criteria for receiving Medicaid benefits; and (b) Provided the recipient with written notice of the proposed termination, at least ten days in advance of the effective date of the proposed termination. Recipient has right to a fair hearing to challenge the Medicaid termination and may continue to receive Medicaid pending the hearing decision if the request for fair hearing is filed within ten days from the date on which the termination notice is provided. See also Massachusetts Ass'n of Older Americans v. Sharp 700 F.2d 749 (1st Cir.1983) (preliminary injunction granted).

Upholds law which requires all physicians to charge Medicare patients no more than the Medicare-determined reasonable fee.

Affirms Secretary's decision that hospital's neurology/neurosurgery unit and its interim coronary care unit were not special care units for purposes of Medicare reimbursement.