State accepts restriction on proposed payment cuts to disabled service-providers 

The Idaho Department of Health and Welfare filed a motion in federal court this month to accept a permanent injunction that would block the agency’s proposed Medicaid reimbursement cuts to 16 companies that serve the developmentally disabled.

The companies, representing half of Idaho’s “residential habilitation” industry, filed a lawsuit April 3 that said the cuts could put them out of business and force hundreds of vulnerable people into state institutions in violation of state and federal law. About half of the $4 million the state pays annually out of its general fund to the providers was at stake.

U.S. District Judge Justin Quackenbush of the Eastern District of Washington issued a temporary restraining order April 28 and wrote in a document that the plaintiffs’ “chances of success on the merits are substantial.”

The department filed a motion Sept. 8 to accept the lawsuit’s demand for a permanent injunction.

“Such a procedure is an eminently logical means to prevent wasting the time and effort of all concerned and to make the most efficient use of judicial resources,” the state’s motion stated.

However, the attorney representing the plaintiffs, James Piotrowski, is fighting the motion.

He said the state wants “to bring the case to a premature end” to avoid discovery, the pre-trial process where legal opponents exchange documents and evidence. Piotrowski said the state did not wish to settle the case.

“This is pretty unusual,” he said. “I don’t believe I’ve ever seen any defendant basically try to agree with everything we’re asking for and then ask the court to enter a final judgment.”

Tom Shanahan, a spokesman for the department, said the agency initiated settlement discussions with Piotrowski on July 23 and even provided an offer to him.

“We had talked to him, and he said he would take his offer to his clients,” Shanahan said. “And then we never heard anything back. The next thing that happened was he filed for discovery.”

Shanahan declined to comment further about the case.

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