Wisconsin Lawsuit Seeks To Block Per Diem Rate Cuts To LTC Residential Provider Organizations Serving Developmentally Disabled

In August 2012, a group of 16 people with developmental disabilities sued the state of Wisconsin Department of Human Services and of the state’s three Medicaid Family Care long-term care managed care organizations (MCOs) to block rate cuts to residential long-term care provider organizations serving Medicaid beneficiaries enrolled in the Family Care program. Earlier in 2012, DHS cut capitation rates to the MCOs, which led the MCOs to cut per diem rates to group home provider organizations. In turn, the provider organizations began seeking ways to reduce costs and some discharged high cost clients. The plaintiffs allege . . .