FOR IMMEDIATE RELEASE

 

 

 

 

Judge Dismisses Suit Challenging 7 percent cuts

Judge Wilhelmina Wright cites lack of standing in ruling

On June 28, United States District Judge Wilhemina Wright denied a request to immediately stop cuts to funding for thousands of Minnesotans accessing crucial services that allow them to live, work and engage in their communities.
SAINT PAUL, MINN. – On February 15, plaintiffs in the case ARRM, MOHR, et al. v. Commissioner Emily Johnson Piper received notification of United States District Court Judge Wilhelmina Wright’s dismissal without prejudice of the challenge brought by ARRM, MOHR and four individual waiver recipients to a decision by the Commissioner of the Minnesota Department of Human Services (DHS) to impose a 7 percent cut to DWRS provider payment rates (ARRM, MOHR, et al. v. Commissioner Emily Johnson Piper, Case No. 18-cv-01627-WMW-BRT).

The suit alleged that, without state or federal authority, DHS imposed a 7 percent cut by eliminating three provider workforce rate increases conferred by Minnesota laws enacted in 2013 and 2014. The plaintiffs contend the cuts will harm, and already are harming, waiver recipients, in addition to violating the federal Rehabilitation Act and the Americans with Disabilities Act (“ADA”).  

In a 22 page Order, Judge Wright concluded the harm to waiver recipients resulting from the 7 percent cuts was not imminent and was too speculative to support a claim in federal court. Noting the elimination of the 7 percent “will occur in multiple stages” from July 1, 2018 through December 31, 2019, the Court held that any injuries are speculative given that one or more events could occur in the next nine months which might prevent the alleged injuries from ever arising.

The Judge also stated that providers do not have constitutionally protected interests in this case. Citing with approval a 1979 Eighth Circuit decision that rejected a constitutional challenge to the sufficiency of Minnesota nursing home rates, the Court noted that if providers are “dissatisfied with the reimbursement rates, they can either operate more efficiently or terminate their relationship with Medicaid and no longer accept Medicaid recipients as residents.”

“Home and community-based providers are already operating well beyond any rational concept of efficiency, and to terminate their relationship with Medicaid waiver service recipients would be akin to closing, as more than 95 percent of all clients of home and community-based service providers are funded entirely by Medicaid waivers,” said Sam Orbovich, attorney with the law firm Fredrikson & Byron who represented the plaintiffs in this case.  “Unlike disability service providers, nursing facilities serve a mix of residents who either pay privately, or are covered by Medicaid, Medicare or other payers. If ARRM’s members were to terminate their relationships with Medicaid waiver recipients, Minnesota would lose the majority of its capacity to provide federally mandated supports to people with disabilities to access independent and inclusive lives in their communities.”

In other notes, in her ruling Judge Wright did not rule whether the overall action by DHS ultimately overstepped its authority or Minnesota law, leaving the possibility open for future litigation in either state or federal court. The plaintiffs are carefully considering all their options moving forward.

ARRM (The Association of Residential Resources of Minnesota) is a nonprofit association of more than 200 Minnesota providers, businesses and advocates dedicated to leading the advancement of community-based services that support people living with disabilities in their pursuit of meaningful lives.  ARRM members support people with developmental, intellectual and physical disabilities including autism, brain injury and mental health needs. People served live in their own homes, adult foster care settings, and other community settings.  Founded in 1970, ARRM continues to lead positive industry reforms that support Minnesotans with disabilities. To learn more, visit arrm.org, and follow us on Facebook and Twitter.

The Minnesota Organization for Habilitation and Rehabilitation (MOHR) is comprised of more than 100 adult day, day training and habilitation, extended employment, and supported employment service provider members serving in excess of 26,000 Minnesotans with disabilities.  Members are committed to respect for each individual, a person-centered approach and expanding work opportunities. More information is available at mohrmn.org, on Facebook and on Twitter.

 

Contact:

Drew Henry

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