July 23, 2010

Nebraska Supreme Court Ruling in Davio v. Nebraska Department of Health and Human Services

Davio v. Nebraska Department of Health and Human Services is a class action lawsuit filed by a low-income single mother with a chronic heart condition on welfare who lost Medicaid coverage in 2007 after she failed to meet Nebraska's Employment First work requirements that she spend at least 30 hours per week working or in employment-related activities. The court ruled that the Nebraska Department of Health and Human Services (DHHS) exceeded its authority by linking the work requirements to 12-month Medicaid eligibility. The court noted that the state Welfare Reform Act allowed DHHS to only withdraw cash assistance as a penalty for individuals who failed to adhere their Employment First contract obligations; the legislature did not authorize stricter penalties.