NC judge freezes Medicaid rates for autism treatment, blocking DHHS cut ...Middle East

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NC judge freezes Medicaid rates for autism treatment, blocking DHHS cut

The North Carolina Department of Health and Human Services cannot reduce Medicaid payments to providers of a service to children with autism, a Superior Court judge ruled Monday. 

Special Superior Court Judge Clayton D. Somers granted a preliminary injunction to children who had sued through their parents over the rate cuts. 

    Somer’s ruling means payment rates to providers of Applied Behavioral Analysis cannot be cut before a trial. ABA aims to improve social skills and communication, increase positive behavior and reduce negative behavior, according to the Cleveland Clinic. 

    Starting Oct. 1, NC DHHS cut rates to Medicaid providers anywhere from 3% to 10%, claiming the legislature did not appropriate enough money to the insurance program to see it through the budget year. 

    Attempts by the legislature to approve increased Medicaid funding became tangled in disagreements between House and Senate Republicans. Republicans have criticized the Medicaid cuts as unnecessary. 

    Last week, Gov. Josh Stein, a Democrat, called the General Assembly back for a special legislative session on Nov. 17 to approve more Medicaid money. The legislature is not required to approve additional funding at the special session. 

    The lawsuit against NC DHHS was brought by 21 children through their parents or guardians, who say the 10% cut to ABA is discriminatory because it targets children with a disability.  

    All the children who sued are on Medicaid and rely on behavioral healthcare treatment for autism or are on waiting lists for that care, said Michael Easley Jr., one of their lawyers.

    Easley described his clients as “unfairly caught in the middle of a political budget impasse” that could lead to the denial of Medicaid services they rely on, placing them at increased risk of institutionalization or segregation. 

    But an attorney for DHHS said the agency’s cuts to ABA therapy are not discriminatory. Adrian W. Dellinger, a lawyer with the state Department of Justice representing the agency, said it also made 10% rate cuts to other services, including to surgical centers, anesthesiology providers and free-standing birth centers.

    “These cuts were made with deliberation, not malice,” Dellinger said. 

    ABA providers received a 15% rate increase on Jan. 1, 2024, Dellinger told the court. After that increase, spending on ABA increased sharply, with five providers accounting for 41% of the increased spending. 

    In 2023, before the rate increase, Medicaid spent $199 million on ABA. Costs were projected to increase 425% by 2026. 

    Even with the reduction, Dellinger said, NC Medicaid will pay more for ABA than it did in 2023, and at rates higher than in 42 other states. 

    Somers, who served as chief of staff to former Republican House Speaker Tim Moore, pressed Dellinger on whether the legislature could be trusted to come up with the additional money.  Moore appointed Somers to the bench in 2023. 

    Somers also repeatedly asked Dellinger if DHHS Secretary Dev Sangvai could be trusted to reverse the rate cuts if the legislature appropriated more money. 

    “At the end of the day, this is about trust,” Somers said. Medicaid won’t run out of money until May, he said, while the children could suffer irreparable harm. 

    Somers said Sangvai “used a scalpel” to make the cuts. “One might say he made these cuts with surgical precision,” Somers said, echoing a 2016 federal appeals court ruling that struck down a Republican election law the court found targeted Black voters. 

    Rhonda Huey of Charlotte smiled with relief after Somers blocked the ABA Medicaid rate cut. 

    Huey, who attended the hearing with other parents, said she has two sons with autism, an 8-year-old and an 11-year-old. 

    She attended school every day with her eldest son for six years, but no longer has to because of the improvements brought about by ABA. He has now moved out of classes for exceptional children and into a regular classroom, she said. ABA “just turned it around,” Huey said. 

    She was worried because her son’s provider had said they may no longer accept Medicaid if rates are cut. 

    “You could see the difference and impact,” she said. “My baby had missed a lot of birthday parties. We couldn’t go to church. We couldn’t do a lot of things.”

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