Louisiana Reaches Agreement in Lawsuit ‘Challenging’ Care for Elderly, Disabled Residents

Louisiana has agreed to spend $120 million over the next four years to settle a federal lawsuit filed last year "challenging" services that the state provides to elderly and disabled residents, the Baton Rouge Advocate reports. Under the lawsuit, Barthelemy v. Louisiana, Medicaid beneficiaries forced into state-run nursing homes and those who face "imminent risk" of institutionalization had accused the state of "unconstitutionally condemning" them to nursing homes. A 1999 U.S. Supreme Court ruling requires states to provide services in the "least restrictive environment." State Department of Health and Hospitals Secretary David Hood unveiled the proposed settlement last Thursday. Under the agreement, the state would spend $118 million over the next four years to provide community-based services to 1,700 additional elderly and disabled residents, which would allow them to reside outside of nursing homes and reduce waiting time for services to 90 days or less. Included in that figure is $18 million that the state would spend in 2002 to extend services to 650 residents, and $32 million in 2003 to cover an additional 650 residents. In 2004 and 2005, the state would spend $34 million to expand services to an additional 400 residents. The state would also expand outreach programs to inform elderly and disabled residents about community-based services. According to Hood, Louisiana now spends about $800 million per year in Medicaid funds to provide nursing home care for elderly and disabled residents but less than $10 million for community-based services. "With this agreement, Louisiana will soon join with the most progressive states in better meeting the needs of aging baby boomers," Hood said. Plaintiffs' attorney Nell Hahn said that the settlement marks a "tremendous step forward in providing community services for people," but she added that "a lot more still needs to be done." U.S. District Court Judge Edith Brown still must approve the deal (Shuler, Baton Rouge Advocate, 8/17). For further information on state health policy in Louisiana, visit State Health Facts Online.