Pennsylvania Families Sue Shapiro Administration Over Medicaid Caregiver, Travel Restrictions
Four Pennsylvanians with intellectual and developmental disabilities filed a class action lawsuit challenging new Medicaid waiver rules that limit paid hours for family caregivers to 40–60 per week and restrict out-of-state travel support. The Shapiro administration imposed the limits through participation agreements after Commonwealth Court struck down nearly identical policies in February 2026 for failing to follow required rulemaking procedures. The administration gave participants an Aug. 6 deadline to sign new agreements or face involuntary service terminations; over 8,300 beneficiaries had signed by early September. Plaintiffs argue the state is bypassing the regulation process and forcing families to choose between uncompensated caregiving or institutional care.
The lawsuit tests whether Pennsylvania can impose Medicaid waiver restrictions through contracts after courts invalidated the same policies as improperly promulgated regulations — a dispute affecting thousands of participants in self-directed services and setting potential precedent for how states implement program changes outside formal rulemaking.
LTSS · Managed Care
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