Lawsuit Charges State Of Minnesota Deliberately Underspent Medicaid Developmental Disability Waiver Funds

On August 28, 2015, a group of five adults with developmental disabilities sued the Minnesota Department of Human Services (DHS) alleging that the state has purposely underspent on Medicaid developmental disability (DD) waiver services. In the most recent DHS Waiver Review Initiative summary for July 2012 to May 2015, 72 of the 81 lead agencies that managed DD waiver services had unspent reserves of 4% or more in their DD waiver funds. Of the 72 lead agencies with unspent reserves, 30 had reserves of 10% or more.

The lawsuit, K.G., et al., v. Minnesota DHS, noted that unspent waiver . . .