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Medicaid patients in Oregon allowed to sue state

LTC Liability Monitor, February 16, 2006

An Oregon appeals court ruled that elderly and disabled people cut from the state's Medicaid-equivalent Oregon Health Plan in 2003 may sue the state for nursing home care, the Associated Press (AP) reported. Though the suit involves 3,000 people, state officials estimated that more than 10,000 people saw their nursing home care grind to a halt at some level when the state, in an effort to trim its budget, streamlined eligibility requirements three years ago.

The involved parties sued the state under the federal Medicaid law that requires states to provide a specific level of nursing care to low-income elderly and disabled residents. The ruling by the 9th U.S. Circuit Court of Appeals is binding in nine states. Observers say the recently passed federal Deficit Reduction Act, which requires cuts in Medicaid, could also be a factor in the case, the AP reported.

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