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Nonprofit sues over DCS rate cuts

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A nonprofit organization made up of agencies that provide services to abused and neglected kids is suing the Indiana Department of Child Services for cutting rates paid to the agencies next year.

The Indiana Association of Residential Child Care Agencies Inc. filed suit Monday against DCS and director James W. Payne in Marion Superior Court seeking declaratory and injunctive relief.

DCS contracts with IARCCA's members to provide services to children as described in Title IV-E of the Federal Social Security Act, which include foster care placements and residential placements. About 80 members provide services that include a residential component.

According to the suit, No. 49D11-0912-PL-056480, the DCS informed residential members earlier this month that the rates for 2010 will be cut between 4 and 14 percent and no less than 20 percent for licensed child placing agencies. DCS allegedly told the licensed child placing agencies that it would transfer the children to other locations if the providers didn't sign the new contracts with the lower rates within five days of receipt.

The contracts provide for a per diem rate set by DCS, but there is no written explanation as to how these reimbursement rates are calculated.

IARCCA accuses the DCS of failing to establish any rules or method by which it sets provider reimbursement rates and that DCS arbitrarily is cutting rates paid to providers.

IARCCA says the cuts will affect the quality of the children's care, result in higher ratios of children to staff supervisors, higher caseloads for therapists, and reductions of tutoring and mentoring programs.

IARCCA wants the court to declare that DCS' setting of per diem rate payments to providers other than pursuant to promulgated rules violates Indiana Code Section 4-22 and Title IV-E. IARCCA also seeks a preliminary injunction preventing DCS from reducing its rates until it has promulgated rules governing the establishment of per diem rates, and permanent injunctive relief requiring the agency to set rates and to change rates in accordance with written standards in state and federal law. IARCCA also wants relief to prevent DCS from taking any action concerning children in the care of providers based solely on decisions about the rates to providers.

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  1. So that none are misinformed by my posting wihtout a non de plume here, please allow me to state that I am NOT an Indiana licensed attorney, although I am an Indiana resident approved to practice law and represent clients in Indiana's fed court of Nth Dist and before the 7th circuit. I remain licensed in KS, since 1996, no discipline. This must be clarified since the IN court records will reveal that I did sit for and pass the Indiana bar last February. Yet be not confused by the fact that I was so allowed to be tested .... I am not, to be clear in the service of my duty to be absolutely candid about this, I AM NOT a member of the Indiana bar, and might never be so licensed given my unrepented from errors of thought documented in this opinion, at fn2, which likely supports Mr Smith's initial post in this thread: http://caselaw.findlaw.com/us-7th-circuit/1592921.html

  2. When I served the State of Kansas as Deputy AG over Consumer Protection & Antitrust for four years, supervising 20 special agents and assistant attorneys general (back before the IBLE denied me the right to practice law in Indiana for not having the right stuff and pretty much crushed my legal career) we had a saying around the office: Resist the lure of the ring!!! It was a take off on Tolkiem, the idea that absolute power (I signed investigative subpoenas as a judge would in many other contexts, no need to show probable cause)could corrupt absolutely. We feared that we would overreach constitutional limits if not reminded, over and over, to be mindful to not do so. Our approach in so challenging one another was Madisonian, as the following quotes from the Father of our Constitution reveal: The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse. We are right to take alarm at the first experiment upon our liberties. I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations. Liberty may be endangered by the abuse of liberty, but also by the abuse of power. All men having power ought to be mistrusted. -- James Madison, Federalist Papers and other sources: http://www.constitution.org/jm/jm_quotes.htm RESIST THE LURE OF THE RING ALL YE WITH POLITICAL OR JUDICIAL POWER!

  3. My dear Mr Smith, I respect your opinions and much enjoy your posts here. We do differ on our view of the benefits and viability of the American Experiment in Ordered Liberty. While I do agree that it could be better, and that your points in criticism are well taken, Utopia does indeed mean nowhere. I think Madison, Jefferson, Adams and company got it about as good as it gets in a fallen post-Enlightenment social order. That said, a constitution only protects the citizens if it is followed. We currently have a bevy of public officials and judicial agents who believe that their subjectivism, their personal ideology, their elitist fears and concerns and cause celebs trump the constitutions of our forefathers. This is most troubling. More to follow in the next post on that subject.

  4. Yep I am not Bryan Brown. Bryan you appear to be a bigger believer in the Constitution than I am. Were I still a big believer then I might be using my real name like you. Personally, I am no longer a fan of secularism. I favor the confessional state. In religious mattes, it seems to me that social diversity is chaos and conflict, while uniformity is order and peace.... secularism has been imposed by America on other nations now by force and that has not exactly worked out very well.... I think the American historical experiment with disestablishmentarianism is withering on the vine before our eyes..... Since I do not know if that is OK for an officially licensed lawyer to say, I keep the nom de plume.

  5. I am compelled to announce that I am not posting under any Smith monikers here. That said, the post below does have a certain ring to it that sounds familiar to me: http://www.catholicnewworld.com/cnwonline/2014/0907/cardinal.aspx

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