Fed Lawsuit May Harm Medicaid Home Care Health Insurance

Recently there has been a federal lawsuit brought up against the City of New York. This lawsuit claims that the city has irresponsibly handled the distribution of Medicaid funds through home health care to patients who did not need the care. The lawsuit also claims the state has been careless about the way Medicaid funds have been used over the past 10 years.

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Many Medicaid home care cases are determined with the thought that it is better to have a patient at home, rather than placing them in a assisted care facility. This is done out of the thought that the elderly should live with as much independence as long as possible. The opposition believes that this is financially irresponsible.

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The suit has been asked to be overturned and dismissed by the City of New York. The real threat that is worrying experts is the precedent this trial may set. If the federal government wins this trial, it is likely that other states will follow in their footsteps.