The First Appellate District affirmed an order. The court held that regulations that set upper billing limits for providers of specified medical supplies to Medi-Cal recipients were within the authority of the agency that promulgated the regulations.

In 2004, the California Department of Health Care Services promulgated regulations that set upper billing limits (UBL) for providers of durable medical equipment and specified medical supplies to Medi-Cal recipients. The Department intended to close a loophole in Medi-Cal regulations.