Arguments were held today in ARRM’s lawsuit against the Minnesota Department of Human Services (DHS), seeking to stop the implementation of the 7 percent cuts to the Disability Waiver Rate System rates. ARRM’s co-plaintiffs were also in attendance: the Minnesota Organization for Habilitation and Rehabilitation (MOHR), and guardian representatives for Karla Dee Marder, Robert Clapper, Kathryn Smith, and Cara Pedrille.
Sam Orbovich argued on behalf of all plaintiffs, effectively delivering our argument that DHS has no authority to cut rates as they remained unchanged in state law, which clearly outlines the state’s obligation. He pointed out to Judge Wilhemina Wright that regardless of decisions at the federal level by the Center for Medicare and Medicaid Services about its match for Medicaid dollars, state law requires DWRS rates to include the full 7 percent model adjustments added back in 2013 and 2014.
The proceedings also touched on the core of the overarching regulatory dispute: whether the 7 percent after model adjustments passed in 2013 and 2014 do, in fact, constitute a cost of living increase which would conflict with the most recent regularly scheduled rate adjustments.
Judge Wright asked pointed questions of both counsels but ultimately stated she would take time to consider the arguments before making her final ruling.