New Hampshire Settles Class Action Over Underfunded Medicaid Home Care
New Hampshire and a coalition of disability rights groups reached a settlement in Fitzmorris v. DHHS, a nearly six-year class action alleging the state's Choices for Independence Medicaid program was so underfunded that participants risked illegal institutionalization under the ADA and Rehabilitation Act. The suit argued low reimbursement rates made it impossible to hire enough caregivers, leaving participants without approved services for basic daily activities. Under the deal, DHHS must hire a consultant to assess service gaps, create contingency plans for participants receiving under 50% of approved care, analyze and seek biennial inflation-adjusted reimbursement increases, expand specialized rates, build a caregiver directory, broaden its grievance system, and report compliance twice yearly. Federal Judge Paul Barbadoro must still approve the settlement; reactions among the roughly thousands of class members range from relief to skepticism about implementation and funding trade-offs.