Disability parents in Indiana are suing the state over Medicaid reforms to address a $1 billion shortfall.

INDIA -- The Americans with Disabilities Act and federal Medicaid laws are allegedly violated by changes to attendant care services, according to a lawsuit filed in federal court by two parents of disabled children against an Indiana organization.

Parents, guardians, and spouses have been able to receive payment for in-home care for years thanks to a state agency. But as of July 1, the state would no longer pay guardians or family members. Following the agency, the Family and Social Services Administration (FSSA) underestimated its Medicaid spending until July 2025 by nearly $1 billion. These measures were implemented as part of a cost-saving initiative.

Families with children who need daily medical attention are criticizing the move, saying it is not well managed. The complaint asks for a court order directing the state to keep paying parents and guardians, claiming that the children's health and welfare are in danger.

It is stated in the Friday complaint that "this is a legally intricate case involving children with complex medical needs."

An email request for comment was not immediately answered by an FSSA representative. The state has seen that unanticipated increases in Medicaid program spending are occurring for attendant care services.

The American Civil Liberties Union of Indiana and Indiana Disability are representing the families in the complaint, together with the Indiana Protection and Advocacy Services Commission.

Families of children with a range of medical needs have voiced resistance to the proposed modifications since they were announced in January. Medicaid payments are critical for parents who are unable to work while taking care of their children and for rural households without access to skilled workers, according to the complaint.

According to the lawsuit, parents must provide round-the-clock care, which includes giving gastronomy tube feedings, controlling a ventilator, keeping an eye on seizure activity, and giving out medication.

Although the FSSA has stated that it intends to work with families to investigate alternatives to traditional care, the complaint contends that the increased reimbursement rates are insufficient.

The complaint expresses concerns that these changes may result in the placement of children who require continuous medical attention in an "institutional environment," particularly if their parents must return to work in order to pay for the care. The lawsuit highlights the fact that, in order to satisfy their child's unique demands, parents of children with such disabilities frequently choose to provide direct care.

The six-year-old boy with Cri-du-chat syndrome, a rare genetic illness, and the ten-year-old with hypoxic-ischemic encephalopathy, a type of brain damage, are cared for by the moms named in the complaint.

Both kids have frequent seizures that require ongoing observation in addition to other kinds of support. The 10-year-old had a bad experience while staying in a pediatric nursing facility on a temporary basis.

The lawsuit contends that the risk of institutionalization violates the Americans with Disabilities Act, which mandates that state and local governments provide services in people's homes and communities.