Major Developments in NCLEJ Litigation Since 2002

Welfare Law Center and National Health Law Program Win Back Healthcare Coverage for Thousands of Missouri Families

Court Order Halts Last-Minute State Action Cutting Thousands Off Medicaid

July 29, 2002 – Thousands of low income families will have their Medicaid coverage restored after a federal judge issued a temporary restraining order halting a state practice of failing to provide them with transitional Medicaid benefits. On Friday July 26, Judge Nanette K. Laughrey of the U.S. District Court for the Western District of Missouri ordered the State to restore the Medicaid coverage of approximately 20,000 working poor families.

The Welfare Law Center and the National Health Law Program brought the class action on behalf of Missouri families struck by a devastating change in state Medicaid policy July 1. These struggling families, aided by low-wage employment but vulnerable to the smallest shifts in their safety net, suddenly found themselves forced to pay-out-of-pocket, from meager budgets, to cover their families’ medical costs, or do without desperately-needed medical services.

Prior to July 1, Missouri’s income threshold for low income Medicaid eligibility was set at one hundred percent of the federal poverty level, which is $18,100 for a family of four in 2002. Effective July 1, Missouri lowered that income ceiling to 77% of the federal poverty level, or $13,937 for that same family of four.

Plaintiffs charge that the Missouri policy violates federal protections designed to preserve Medicaid benefits as an entitlement program for families moving from welfare to work. Under federal law, plaintiffs argued that families with earnings whose Medicaid is terminated are entitled to at least six months of transitional Medicaid. Missouri has refused to provide transitional Medicaid to those who lost their Medicaid when the income ceiling was changed to 77% of the federal poverty level.

Also, under federal law, in order to avert interrupted healthcare coverage or delays in re-applications, a state is required to determine whether a Medicaid recipient is eligible for coverage under other programs before terminating coverage due to earnings.

Cheri White, the lead plaintiff, suffers from severe insulin-dependent diabetes, a disabling medical condition which require prescription medication at prohibitive costs. A working mother of two, Ms. White cannot afford even a short time without medical coverage. Without Friday’s decision, it is likely that she would have been forced to quit her job and apply for welfare to regain Medicaid eligibility. The court order issuing temporary coverage will allow her and thousands of other families to regain coverage immediately or take the time to line up alternative medical coverage.

Judge Laughrey has set a hearing on the plaintiffs’ request for a preliminary injunction for August 16. The hearing will be held at the U.S. District Court in Jefferson City. The case is White v. Martin.

Plaintiffs’ attorneys are Rebecca Scharf and Marc Cohan of the Welfare Law Center, 275 Seventh Ave., Suite 1205, New York, NY 10001, tel. 212 633-6967 (scharf@welfarelaw.org and cohan@welfarelaw.org); Steve Hitov, National Health Law Program, 1101 14^th Street, NW, Suite 400, Washington, DC 20005-5601, tel. 212 289-7661, hitov@healthlaw.org and Jon E. Beetem, Beetem Law Offices, P.C., Jefferson City, MO.