Parents of Disabled Children Sue Indiana Over Medicaid Changes

Parents of two children with disabilities have filed a lawsuit against an Indiana agency in federal court, claiming recent changes to attendant care services violate the Americans with Disabilities Act (ADA) and federal Medicaid laws. The lawsuit comes in response to the state’s decision to stop reimbursing family members and guardians for home care services.

Background of the Medicaid Changes

For years, the Family and Social Services Administration (FSSA) in Indiana has reimbursed parents, guardians, and spouses for providing home care to their disabled children. However, starting July 1, the state will no longer offer these reimbursements as part of a cost-saving measure. The FSSA made this decision after underestimating Medicaid expenditures through July 2025 by nearly $1 billion.

Impact on Families

The lawsuit highlights the adverse effects this change will have on families, particularly those with children requiring constant medical attention. The plaintiffs argue that the transition has been poorly managed, putting their children’s health and well-being at risk. The complaint urges the court to mandate the continuation of reimbursements for parents and guardians.

Legal Representation and Claims

The families are represented by the American Civil Liberties Union (ACLU) of Indiana, Indiana Disability Rights, and the Indiana Protection and Advocacy Services Commission. The lawsuit contends that the changes violate the ADA, which requires state and local governments to provide services in people’s homes and communities. The families argue that the new reimbursement rates are insufficient, potentially forcing some children into institutional settings if their parents need to return to work to cover care costs.

Case Details

The lawsuit involves two specific cases:

  • A 6-year-old boy with cri-du-chat syndrome, a rare genetic disorder.
  • A 10-year-old child with hypoxic-ischemic encephalopathy, a type of brain damage.

Both children experience routine seizures that require constant monitoring, along with other medical needs. The 10-year-old previously spent time in a pediatric nursing home, which resulted in a “horrendous experience,” according to the complaint.

State Response and Concerns

The FSSA has stated it will work with families to find alternative care options. However, the lawsuit alleges that the proposed reimbursement rates are inadequate. The plaintiffs argue that these changes could force parents to place their children in institutions, which contradicts the ADA’s requirements.

Community and Legal Implications

Families of children with complex medical needs have voiced their opposition to the changes since they were proposed in January. The Medicaid payments are crucial for rural families far from specialized facilities and provide financial support for parents who cannot work while caring for their children. The lawsuit emphasizes the importance of allowing parents to provide direct care tailored to their children’s individual needs.

The outcome of this case could have significant implications for Medicaid policies and the rights of families with disabled children in Indiana and beyond.