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Nebraska Must Make Medicaid Payments to Single Parents Until Action for Transitional Medical Assistance is Resolved

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Case ID: 2563 | Insurance | 08/30/2004

A class action has been filed against Ron Ross, director of the Nebraska Department of Health and Human Services, on behalf of Nebraskans who are single parents, who were removed from Medicaid in 2002 during a special budget-cutting session of the Nebraska legislature, and who were denied the Transitional Medical Assistance (TMA) provided by federal law. The action seeks an award of TMA and notification of the availability of TMA for all those single-parent Nebraskans who lose their Medicaid eligibility in the future.

The class action was filed by two low-income mothers who lost Medicaid coverage under the legislature's cuts. The parents--Teresa Kai of Pender and Stacy Noller of Kearney--allege that they have chronic medical problems and that they are unable to work without the prescription drugs provided under Medicaid. The federal program provides up to a year of additional health-care coverage for those terminated from Medicaid, as long as they received Medicaid in three of the six months prior to the date that they were removed from Medicaid.

The district court initially ordered that Medicaid payments should be stopped until the resolution of the TMA action. The plaintiffs appealed that ruling, and in March 2003 the appellate court reinstated Medicaid payments, at least until there is a final decision regarding the availability of TMA. This decision is estimated to affect an estimated 10,000 single working parents who were removed from Medicaid in 2002.

While the appeals court did not render a final decision in the case, the court said the parents had a "substantial likelihood of success" in regard to their claim for TMA. The appeals court said it ruled quickly on the case, just three weeks after arguments were made, because the welfare of thousands of people is involved.


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