NEWS ITEM

District Court Grants Preliminary Injunction to Stop Cuts to Home Care Providers’ Wages

Finds Strong Likelihood of Success on Claim California Failed to Comply with Medicaid Statute

June 25, 2009 -- U.S. District Court Judge Claudia Wilken issued a preliminary injunction today blocking the implementation of a California law that would have cut the State’s contribution to home care providers’ wages and benefits in the In Home Supportive Services (“IHSS”) program. The IHSS program helps elderly and disabled individuals remain in their homes rather than go into nursing homes, by providing assistance with tasks of daily living. In doing so, the IHSS program permits IHSS consumers to remain in the community and retain their autonomy, and it saves the State millions of dollars that would otherwise be spent on more expensive nursing home care.

Altshuler Berzon LLP represents IHSS consumers and labor unions with IHSS provider members in the lawsuit challenging the law cutting the State's contribution to IHSS provider wages and benefits.

Judge Wilken concluded that the plaintiffs had shown a "strong likelihood of success" on their claim that the California law, which was to become effective on July 1, 2009, violates the federal Medicaid statute. Judge Wilken also ruled that implementation of the statute would cause irreparable harm to IHSS providers, who are low-income workers, and to IHSS consumers who would have difficulty obtaining providers.

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