Arkansas Not Required to Mention Medicaid Benefits Include Certain Services for Children, Judge Rules

U.S. District Court Judge Bill Wilson on July 30 reaffirmed a federal circuit court decision that determined that while Arkansas must provide day treatment and therapy services for developmentally delayed children through its Medicaid program, it can remove "any specific mention" of that requirement from program regulations, the Arkansas Democrat-Gazette reports (Satter, Arkansas Democrat-Gazette, 7/31). The state last year announced it would cut Medicaid funding for the two programs to save $4.9 million to $5.7 million. But five companies that provide the services sued the state, claiming the cuts could cause them to go bankrupt. In December, Wilson sided with the providers, a ruling state officials said meant they would have to expand services statewide, which would cost an estimated $100 million or more per year. The state appealed the decision, and in a June 10 ruling, the 8th U.S. Circuit Court of Appeals in St. Louis agreed with Wilson that Medicaid-eligible children have a right to early childhood services (Kaiser Daily Health Policy Report, 7/24). But the circuit court reversed the part of Wilson's ruling requiring the state to list the services in its Medicaid regulations. State officials said earlier this week that the final ruling will save Arkansas money by "making it more difficult" for developmentally delayed children to receive "superfluous treatments" under Medicaid, the Democrat-Gazette reports. But attorneys for the providers said the state is simply trying to save money by "mak[ing] doctors less aware of the services" (Arkansas Democrat-Gazette, 7/31).