Oakland, CA – Today, Judge Saundra Brown Armstrong gave final approval to a settlement of a federal lawsuit that challenged the State’s planned elimination of Adult Day Health Care (ADHC) as a Medi-Cal benefit (Darling et al. v. Douglas C:09-03798 SBA). She said the settlement was fair, adequate and reasonable and a win-win for both sides. The settlement ensures that critical community based services will be preserved, helping low income seniors and people with disabilities to avoid unnecessary hospitalization or institutionalization. “There are a lot of people who really need this program; I have fought to stay out of a nursing home and have been able to with ADHC,” said Esther Darling, lead plaintiff in the case, age 74.

The seven plaintiffs who represent a class of 35,000 low-income people with disabilities, including older adults, who participate in ADHC programs throughout the State, reached a settlement with the California Department of Health Care Services (DHCS) on November 17, 2011. The Court gave preliminary approval to the settlement on December 14, 2011, and held a fairness hearing earlier today.

The settlement preserves ADHC-like services for people who are at risk of institutionalization, in a new program called Community-Based Adult Services (CBAS). CBAS will offer center-based skilled health and nursing care, therapies, transportation and other services, to eligible low income seniors and people with disabilities.

Under the terms of the settlement, CBAS will be offered through Medi-Cal managed care plans in most parts of the State. CBAS will be part of the State’s 1115 Medicaid waiver, and will not cap enrollment, ensuring that all eligible beneficiaries are able to receive these vital services. Current ADHC recipients who are not eligible for CBAS will receive enhanced case management to assist them to transition smoothly to other long-term care services in the community. Many of the current ADHC providers will be able to provide CBAS services, thus ensuring continuity of care.

Elissa Gershon, Senior Attorney for Disability Rights California, commented, “We are proud to be part of this settlement that guarantees that Esther Darling and tens of thousands like her will continue to receive the critical services they need to continue to live in their own homes and communities.” Morrison & Foerster partner Ken Kuwayti noted, “"This settlement demonstrates that even in these challenging budget times, our State has recognized the importance of maintaining this uniquely beneficial and cost-effective program."

The settlement resolves the Darling v. Douglas lawsuit, which was filed over two years ago. Plaintiffs argued that eliminating ADHC, without appropriate replacement services, would violate the Americans with Disabilities Act by placing ADHC participants at risk of institutionalization, hospitalization, injury or death. The Court issued two preliminary injunctions, stopping cutbacks in the ADHC program, and was set to hold a hearing on the third preliminary injunction when the case settled. The State’s appeal of the second preliminary injunction is pending in the Ninth U.S. Circuit Court of Appeal and will be withdrawn pursuant to the settlement. The United States Department of Justice participated in the lawsuit, by filing an amicus (friend of the court) brief in the appeal, filing two Statements of Interest, and supporting the settlement.

Plaintiffs are represented by Disability Rights California, the National Senior Citizens Law Center, the National Health Law Program, AARP Foundation Litigation, and the firm of Morrison & Foerster LLP (pro bono counsel).

Go to http://www.disabilityrightsca.org/advocacy/Darling-v-Douglas/index.html for more information on the lawsuit.