Groups sue to stop state Medicaid cuts to family caregivers after $1B budgeting shortfall
Indiana Disability Rights and the ACLU of Indiana on Friday filed a federal lawsuit seeking to stop a state agency’s policy change that advocates say could hurt Hoosier families and their ability to care for their children with complex medical cases.
Following the state Medicaid office’s discovery of a nearly $1 billion budget shortfall in late 2023, Indiana’s Family and Social Services Administration announced earlier this year it would no longer pay for parents or spouses to care for elderly or disabled loved ones including children with disabilities and complex medical conditions, referred to as the attendant care program.
The policy change is scheduled to go into effect July 1. FSSA has proposed families transition to a "structured family caregiving model" that pays providers a flat daily rate to care for their family members, but generally compensates families less. The Indiana Disability Rights lawsuit asks a federal judge for both an immediate and permanent injunction to stop the FSSA change from moving forward.
The federal complaint filed Friday by the Indiana Protection and Advocacy Service Commission, which oversees the work of Indiana Disability Rights alleges that the FSSA decision violates federal Medicaid law requiring medically necessary care to be available in the community. The complaint also alleges the FSSA decision puts children “at risk of requiring institutionalization,” which would violate federal mandates in the Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1973.
Outside of Indiana Disability Rights, additional plaintiffs in the lawsuit include two minor children: one from Johnson County and one from Lawrence County. The lawsuit is brought against FSSA, the agency’s leader Secretary Dan Rusyniak and the director of the Division of Disability and Rehabilitative Services.
From January: After $1 billion Medicaid budget shortfall, Indiana to cut program paying family caregivers
An FSSA spokesperson told IndyStar Friday that the agency does not comment on pending litigation. But Melissa Keyes, the executive director of Indiana Disability Rights, said in a statement that FSSA’s policy change is “throwing a wrench” in the plans of Hoosier families and how they live their lives.
“Children with medically complex conditions often need near constant care and supervision,” Keyes said in a statement. “Parents and families have for years been able to cobble together a patchwork of services and caregivers, including serving as paid caregivers themselves, to ensure their children have what they need to live safely in the community.”
In January, FSSA estimated the policy change, along with other proposals, would save the agency $300 million a year.
IndyStar reporters Kayla Dwyer and Binghui Huang contributed to this story.
Contact IndyStar state government and politics reporter Brittany Carloni at brittany.carloni@indystar.com or 317-779-4468. Follow her on Twitter/X @CarloniBrittany.
This article originally appeared on Indianapolis Star: Lawsuit seeks stop to Medicaid cuts following $1B budgeting shortfall
