CT judge orders reversal of Trump-era rule that stripped thousands of disability benefits

Feb. 13—A federal judge in the District of Connecticut has ordered the U.S. Department of Health and Human Services to reverse a rule issued by the Trump administration that stripped thousands of people nationwide of Medicaid benefits. The nationwide preliminary injunction was issued in a pending class-action suit against the department.

"I am delighted that the courts reaffirmed what we all advocated as the legally and morally right thing to do," said U.S. Sen. Richard Blumenthal, D-Conn. "Now, the federal bureaucrats have to do the right thing and put those disabled Connecticut people back on the roll for Medicaid benefits so their rights are respected and vindicated."

In a rare move for Medicaid lawsuits, the judge also granted the plaintiffs nationwide class-action status. Typically, such classes are limited to specific states because each state administers Medicaid separately. But because this was a federal rule that affected the entire nation, anyone who lost coverage under this rule change is covered by the injunction.

"We are talking about hundreds of thousands of people throughout the country whom a federal court found were irreparably harmed by not receiving the services they were entitled to," said Sheldon Toubman, the litigation attorney for Disability Rights Connecticut. "It's a national story and it happens to be coming from a federal court in Connecticut."

The Trump rule, called the "interim final rule" stripped hundreds of thousands of people of their Medicaid eligibility in the waning hours of the administration. It was issued four days after the election when votes were still being counted.

The judge ordered the Department of Health and Human Services to reinstate its interpretation of Medicaid eligibility that was in effect before the Trump rule. Medicaid eligibility was protected under the Family First Coronavirus Response Act, directing states not to disenroll people from their benefits after March 18, 2020, during the public health emergency.

"At minimum, states are expected to inform individuals whose coverage was terminated after March 18 2020," wrote CMS in their previous guidance to states under the Families First Coronavirus Response Act. "Where feasible, states should automatically reinstate coverage for individuals terminated after March 18, 2020, and should suspend any terminations scheduled to occur during the emergency period. Coverage should be reinstated back to the date of termination."

The public health emergency is ongoing, but the Biden administration is in the process of winding it down by May 11. Toubman said his clients had their benefits retroactively reinstated.

"If people were erroneously terminated, they should be reinstated retroactively," Blumenthal said. "It's not only about rights going forward it's also about the denial of benefits by the Trump administration."

In a letter sent Feb. 6 to Connecticut's Medicaid director, Daniel Tsai, the deputy administrator of HHS informed the state that the previous guidance was in effect but did not include the previous guidance.

"CMS needs to do more in advising all the states that the previous guidance ... includes the duty to reinstate them," said Sen. Blumenthal. "The court concluded that there is irreparable harm in continuing to deny them."

The news comes as the public health emergency for COVID-19 is winding down. If people choose to seek reinstatement after being removed under the Trump rule, they will enter the normal queue of people who are being reconsidered for eligibility.

"What we suggested is that CMS tell the states to put them at the back of the line because they've already been through hell," said Toubman. "They should be in the last set."

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