NEWS ITEM

District Court Issues TRO to Block Wage Cut for Home Care Providers

Finds Likelihood of Success on Claim that California Violated Medicaid Act

June 29, 2010 -- A federal judge issued a temporary restraining order today to block implementation of a reduction of more than 20 percent in the wages paid to providers of in-home care in Fresno County. The reduction would have reduced the pay of providers in the State's In Home Supportive Services (IHSS) program to the California minimum wage of $8.00 per hour.

Judge Claudia Wilken of the U.S. District Court for the Northern District of California concluded that the plaintiffs had demonstrated a likelihood of success on their claim that California violated the Medicaid Act by approving the Fresno rate reduction without consideration of the effect of the rate cut on quality of care and access to care. Plaintiffs presented evidence that implementation of the rate reduction would cause irreparable harm to providers and recipients of IHSS services.

The IHSS program funds in-home care for eligible elderly and disabled individuals who would otherwise face institutionalization. The program enables individuals to remain in their own homes and saves the government the greater costs of institutional care. Prior proceedings in the same lawsuit have led to other injunctions to prevent cuts to IHSS rates. Click here for prior story.

Altshuler Berzon LLP represents the plaintiffs in the lawsuit. The plaintiffs are a class of IHSS recipients and labor unions with IHSS provider members.

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