Pennsylvania Medicaid rules spark class action lawsuit

Four Pennsylvanians with intellectual and developmental disabilities have filed a class action lawsuit against the administration of Governor Josh Shapiro. The legal challenge targets new Medicaid rules that limit support services for individuals with autism and intellectual disabilities.

The lawsuit follows a previous Commonwealth Court ruling that struck down two similar rules because the state failed to follow proper regulatory processes. Those original rules limited the duration of Medicaid-funded support during out-of-state travel and restricted the number of hours relatives could work as paid caregivers.

In response to the court decision, the Shapiro administration attempted to reimpose similar restrictions through new agreements and consent forms, arguing the court's ruling was a matter of process rather than policy. The administration stated these measures are necessary to protect the financial stability of the Medicaid program. However, critics and advocates warn that these rules could force family members into uncompensated labor and potentially drive individuals with disabilities into institutional care.