Judge Blocks IHSS Worker Wage Cut

Similar Order Issued By Different Judge To Stop Cuts To Medi-Cal Providers

A similar order and required “analysis” was issued by a different federal judge last year and also earlier this year that blocked the state from implementing its rate reductions to most of the Medi-Cal providers.

Attached to this CDCAN Report – and also on the CDCAN website at www.cdcan.us, is a pdf copy the 2 page order. The federal judge said she a longer written order would follow.

The Legislature approved the Governor’s proposal to reduce state funding (participation) for IHSS worker wages to $9.50 per hour plus 60 cents for benefits as part of the 2009-2010 State Budget passed in February – four months early. A proposal by the Governor in May to lower that funding even further – to the state minimum wage of $8 per hour plus 60 cents for health benefits, was rejected by the Budget Conference Committee controlled by legislative Democrats.

TWO PAGE ORDER BY FEDERAL JUDGE:

The two page written order says:

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

MIKESHA MARTINEZ, et al.,
Plaintiffs,
v.
ARNOLD SCHWARZENEGGER, et al.,
Defendants.

No. C 09-02306 CW PRELIMINARY INJUNCTION

IT IS HEREBY ORDERED that Defendants ARNOLD SCHWARZENEGGER, Governor of the State of California; JOHN A. WAGNER, Director of the California Department of Social Services; DAVID MAXWELL-JOLLY, Director of the California Department of Health Care Services; JOHN CHIANG, California State Controller; and their officers, agents, servants, employees, and attorneys, and those persons in active concert or participation with them, are HEREBY ENJOINED AND RESTRAINED from implementing California Welfare and Institutions Code § 12306.1(d)(6) without first conducting the analysis required by 42 U.S.C. § 1396a(a)(30)(A), as described in Orthopaedic Hospital v. Belshe, 103 F.3d 1941, 1493 (9th Cir. 1997).

A reasoned written order will follow.

IT IS SO ORDERED.
Dated: 6/26/2009

CLAUDIA WILKEN

United States District Judge

CDCAN NOTE

The reference to California’s Welfare and Institutions Code which gives the State the authority to reduce state funding to IHSS worker wages to $9.50 per hour plus 60 cents for health benefits, effective July 1, 2009 (this is the section in state law that the federal judge is blocking):

Section 12306.1 (d)(6) Notwithstanding paragraphs (2) to (5), inclusive, the state shall participate as provided in subdivision (c) in a total cost of wages up to nine dollars and fifty cents ($9.50) per hour and in individual health benefits up to sixty cents ($0.60) per hour. This paragraph shall become operative on July 1, 2009.

The other references – to US law and a lawsuit, deals with federal Medicaid laws and regulations.

The California Disability Community Action Network, is a non-partisan link to thousands of Californians with developmental and other disabilities, people with traumatic brain injuries, the Blind, the Deaf, their families, community organizations and providers, direct care, homecare and other workers, and other advocates to provide information on state (and eventually federal), local public policy issues.