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Medicaid: Neb. Court To Weigh HHS Power


By TIMBERLY ROSS
Associated Press Writer
Published: Tuesday, April 27, 2010 12:09 AM CDT
OMAHA, Neb. — The state Department of Health and Human Services is asking the Nebraska Supreme Court to restore the department’s power to withhold Medicaid coverage under a welfare-to-work program.

In the appeal, HHS attorney Matthew Dunning said Lancaster County District Judge Karen Flowers was wrong to throw out a state policy that ties Medicaid coverage for poor families to weekly work requirements and to grant the case class-action status, among other things.

Flowers’ 2009 ruling said HHS exceeded its authority when approving the work requirement, saying it was a matter for lawmakers to decide.

Her decision stemmed from a lawsuit filed by the Nebraska Appleseed Center for Law in the Public Interest on behalf of more than 400 impoverished parents.

Plaintiffs argued that the state’s Welfare Reform Act allows only cash assistance to be taken away as a penalty for violating the terms of Employment First. So, HHS may not impose a stricter policy by also tying the Medicaid coverage to the work requirement, they argued.

But in HHS’ appeal, Dunning said state statute grants the department the authority to set rules for public programs and that the Welfare Reform Act does not limit that power.


The appeal further states: “The department’s regulations are reviewed by the governor and the Legislature prior to their adoption. ... If the Legislature did not intend for the department to adopt more stringent public assistance sanctions, then why would they direct the department to do so? ...

“Additionally, if the department had attempted to act outside of their statutory authority in implementing the disputed regulations, the legislative review procedures would have prevented their implementation.”

Nebraska Appleseed has filed its own appeal in the case, saying the plaintiffs should have been awarded monetary compensation.

Under the Employment First policy struck down, single parents with children older than 6 were required to work at least 30 hours a week to receive Medicaid. Two-parent families had to work a combined minimum of 35 hours or 55 hours a week, depending on whether they got federally funded child care.

Cash payments may still be withheld from people who don’t work enough hours.

The state Supreme Court is scheduled to hear arguments on Wednesday.



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