Lawsuits hold up budget cuts

OLYMPIA — Lawsuits have delayed millions of dollars in budget cuts needed to balance Washington state’s budget, and court orders are blocking a handful of reductions worth more than $3 million a month.

Gov. Chris Gregoire has called the lawsuits a huge financial burden and says the court action might force her to make cuts elsewhere if the state cannot lift the orders or loses the cases.

The total value of the cuts to nursing home payments and other skilled nursing care for Medicaid patients is about $37 million to $38 million a year.

The lawsuits contend the cuts could harm people who need the state services.

A $19 million a year reduction in payments to nursing homes is being contested by the Washington Health Care Association and seven owners of nursing facilities, who have sued in federal court to block the cuts. U.S. District Court Judge Ronald Leighton in Tacoma has blocked that rate cut for 30 days.

“We’re at the tipping point here for long-term-care funding in general. These lawsuits are an example that you can’t do it any more,” said Gary Weeks, executive director for the Washington Health Care Association.

A hearing in the case before Leighton will come later this week. One key issue is whether the state can order cuts without going through a review process with the federal Centers for Medicare and Medicaid Services.

Three other lawsuits are aimed at halting a $1.1 million-a-month cut in adult day health services, a $59,000-a-month reduction in spending on personal care services for at least two children with developmental disabilities who are cared for at home, and a $420,000-a-month cut in home-care services provided to Medicaid patients cared for by family members employed by care agencies.

A ruling in that case is expected later this week.