The recession has had a negative effect on tax revenues, and state tax revenues almost always decline during recessionary periods. Unfortunately, over the past 15 years, our state leaders have not retained adequate reserves in the State’s “rainy day” fund to handle even a mild recession. Governor Strickland’s decisions to cut back on services and benefits will likely impact a number of groups who rely upon state sponsored programs for their everyday needs.
We expect that the cutbacks will affect the following:
1. Medicaid Waiver Programs. Medicaid Waiver programs are intended to help the elderly and disabled to continue residing in the community rather than in a nursing home setting. These programs typically save the State considerable funds; however, due to a variety of reasons, these programs (particularly as they relate to the mentally ill and mentally retarded), are often the first to be cut. The reason for the cuts to this group is due to the fact that they have little political power. Cuts are also expected to the PASSPORT program, which has helped thousands of senior citizens retain their independence and thrive in the community.
2. Delayed Payments. Nursing homes will likely face hardships due to intentional processing and payment delays so that the State can continue to utilize those funds for a few extra months. If banks and/or other financial institutions resorted to such accounting gimmicks, they would be indicted.
3. Bad Faith Denials. The State will likely covertly direct counties to deny applications, even if the administration is aware that the denial will be reversed. Such a directive would likely be considered improper; however, the directive is not set forth in such a fashion that is easily proved. These efforts will likely result in a large number of administrative hearings, many of which will be litigated and eligibility granted. The State has no penalty as the courts will not award legal fees against the State or counties, particularly in these difficult financial times.
Our law firm has successfully challenged State policies in the past and has represented the disabled and elderly population, both in good times and in bad. Unfortunately, pursuing these processes are expensive and unpleasant, both for the client and the firm.