States fear that five words in Obama health law will open door to lawsuits

Nicole Brossoie, a spokeswoman for New Jersey’s department of Human Services, said the health bill is “a complex statute that requires careful review in order for New Jersey to consider the various expansion options – and fiscal implications of those options – over the course of the next decade.”

“We’re unable to give you any additional information at this time,” she said.

The House Report on the legislative language described the change as merely clarifying the long-held understanding of state requirements.

Levine, however, said that the language “wipes the slate clean of years of litigation precedent that has protected states from Federal encroachment by federal judges.”

“In virtually any case where federal judges have imposed their discretion, it has cost states hundreds of billions of dollars,” he wrote in his memo.

Louisiana’s Medicaid director, Jerry Phillips, said that the most likely consequence – if a Medicaid recipient sues because he or she is unable to find a physician to see them and wins – would be to force states to increase payment rates.

Phillips said that Louisiana has spent $300 million over the last three years to increase payment rates for 30,000 elderly and disabled Medicaid recipients.

More than a quarter of Louisiana’s 4.5 million population is already on Medicaid, and around 400,000 more are expected to join the program due to expanded eligibility standards also in Obama’s new health law.

“If you have something that’s required of a broader population, the number could be staggering,” Phillips said.

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