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'Quality of care' at stake in DCS rate-cut case

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The federal judge who granted a preliminary injunction in the combined suits against the Department of Child Services for cutting reimbursement rates for adoptive and foster parents and child care agencies found the quality of care for children would suffer if the rate cuts stood.

In a 38-page order released Tuesday, U.S. District Judge Sarah Evans Barker detailed her reasons for granting the preliminary injunction from the bench Jan. 20 that blocked the rate cuts by DCS.

"The injuries that all categories of plaintiffs stand to suffer if an injunction is not issued are significant and the type for which there is no adequate remedy at law," she wrote. "There is much more than money at issue in the case. ... Plaintiffs are likely to suffer a variety of substantial harms due to the rate cuts."

Both the parents of adoptive and foster children and the Indiana Association of Residential Child Care Agencies sued DCS in December after learning of cuts to reimbursement rates by the DCS to those parties. The suits were combined into one case, C.H., et al. v. James Payne, No. 1:09-CV-1547. The suit represents more than 100 agencies statewide and has been certified as a class action for foster and adoptive parents throughout the state.

The issue is the rate setting done by DCS, which cut or froze rates to the service providers and parents anywhere from 14 to 20 percent for the service providers and up to 10 percent for parents. The cuts came after the state had asked DCS to cut 10 percent from its budget to send those funds back to the state.

After the state assumed responsibility for the standard per diem for rates, DCS examined the rate structure and decided to lower the reimbursements based on a United States Department of Agriculture report on actual expenditures parents made on children and a nationwide report on foster care per diem rates.

But relying on the USDA report was "questionable" because the report included all children and didn't specify information on costs of raising foster children, wrote Judge Barker. DCS also relied on the figures for the lowest income group in its calculations - numbers that are skewed by the poverty of the recipients instead of reflecting what items actually cost, she continued.

DCS also failed to use a methodology that takes into consideration the actual costs of providing items specified in federal statute such as food, school supplies, and reasonable travel expenses to visit the child's home.

"In addition, to the extent that budgetary concerns drove the decision to impose the uniform across-the-board ten percent reduction, rather than consideration of the specific factors mandated by the statute, such a procedure is in our view inappropriate under Title IV-E," wrote the judge.

DCS also failed to consult with adoptive parents in making individualized determinations of the payment amounts based on the specific needs of children being adopted.

In regards to the service providers, they too successfully proved the need for a preliminary injunction preventing the cuts. The rate setting for the providers didn't follow any specific written procedure and appeared to be "almost entirely motivated and controlled by budgetary concerns," wrote Judge Barker.

She also found persuasive the IARCCA's contention that the rate cut directive DCS instituted was in the nature of a rule and so it is subject to the statutory requirements that govern rulemaking.

"It is the quality of care promised to the children under the applicable statutes that is at stake in the case at bar," she wrote. "Any deficiency in such care cannot later be undone with monetary compensation."

The preliminary injunction restrains DCS from reducing or altering the reimbursement rate to any licensed child care placing agency or residential placement provider below the DCS rates paid on Aug. 1, 2009, and below the rates on Dec. 31, 2009, for the parents. The order also prevents DCS taking any action to circumvent the order, such as transferring a child to a less expensive placement or reclassifying a child to a less expensive rate. The injunction remains in effect until further order from the court.

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  1. I have been on this program while on parole from 2011-2013. No person should be forced mentally to share private details of their personal life with total strangers. Also giving permission for a mental therapist to report to your parole agent that your not participating in group therapy because you don't have the financial mean to be in the group therapy. I was personally singled out and sent back three times for not having money and also sent back within the six month when you aren't to be sent according to state law. I will work to het this INSOMM's removed from this state. I also had twelve or thirteen parole agents with a fifteen month period. Thanks for your time.

  2. Our nation produces very few jurists of the caliber of Justice DOUGLAS and his peers these days. Here is that great civil libertarian, who recognized government as both a blessing and, when corrupted by ideological interests, a curse: "Once the investigator has only the conscience of government as a guide, the conscience can become ‘ravenous,’ as Cromwell, bent on destroying Thomas More, said in Bolt, A Man For All Seasons (1960), p. 120. The First Amendment mirrors many episodes where men, harried and harassed by government, sought refuge in their conscience, as these lines of Thomas More show: ‘MORE: And when we stand before God, and you are sent to Paradise for doing according to your conscience, *575 and I am damned for not doing according to mine, will you come with me, for fellowship? ‘CRANMER: So those of us whose names are there are damned, Sir Thomas? ‘MORE: I don't know, Your Grace. I have no window to look into another man's conscience. I condemn no one. ‘CRANMER: Then the matter is capable of question? ‘MORE: Certainly. ‘CRANMER: But that you owe obedience to your King is not capable of question. So weigh a doubt against a certainty—and sign. ‘MORE: Some men think the Earth is round, others think it flat; it is a matter capable of question. But if it is flat, will the King's command make it round? And if it is round, will the King's command flatten it? No, I will not sign.’ Id., pp. 132—133. DOUGLAS THEN WROTE: Where government is the Big Brother,11 privacy gives way to surveillance. **909 But our commitment is otherwise. *576 By the First Amendment we have staked our security on freedom to promote a multiplicity of ideas, to associate at will with kindred spirits, and to defy governmental intrusion into these precincts" Gibson v. Florida Legislative Investigation Comm., 372 U.S. 539, 574-76, 83 S. Ct. 889, 908-09, 9 L. Ed. 2d 929 (1963) Mr. Justice DOUGLAS, concurring. I write: Happy Memorial Day to all -- God please bless our fallen who lived and died to preserve constitutional governance in our wonderful series of Republics. And God open the eyes of those government officials who denounce the constitutions of these Republics by arbitrary actions arising out capricious motives.

  3. From back in the day before secularism got a stranglehold on Hoosier jurists comes this great excerpt via Indiana federal court judge Allan Sharp, dedicated to those many Indiana government attorneys (with whom I have dealt) who count the law as a mere tool, an optional tool that is not to be used when political correctness compels a more acceptable result than merely following the path that the law directs: ALLEN SHARP, District Judge. I. In a scene following a visit by Henry VIII to the home of Sir Thomas More, playwriter Robert Bolt puts the following words into the mouths of his characters: Margaret: Father, that man's bad. MORE: There is no law against that. ROPER: There is! God's law! MORE: Then God can arrest him. ROPER: Sophistication upon sophistication! MORE: No, sheer simplicity. The law, Roper, the law. I know what's legal not what's right. And I'll stick to what's legal. ROPER: Then you set man's law above God's! MORE: No, far below; but let me draw your attention to a fact I'm not God. The currents and eddies of right and wrong, which you find such plain sailing, I can't navigate. I'm no voyager. But in the thickets of law, oh, there I'm a forester. I doubt if there's a man alive who could follow me there, thank God... ALICE: (Exasperated, pointing after Rich) While you talk, he's gone! MORE: And go he should, if he was the Devil himself, until he broke the law! ROPER: So now you'd give the Devil benefit of law! MORE: Yes. What would you do? Cut a great road through the law to get after the Devil? ROPER: I'd cut down every law in England to do that! MORE: (Roused and excited) Oh? (Advances on Roper) And when the last law was down, and the Devil turned round on you where would you hide, Roper, the laws being flat? (He leaves *1257 him) This country's planted thick with laws from coast to coast man's laws, not God's and if you cut them down and you're just the man to do it d'you really think you would stand upright in the winds that would blow then? (Quietly) Yes, I'd give the Devil benefit of law, for my own safety's sake. ROPER: I have long suspected this; this is the golden calf; the law's your god. MORE: (Wearily) Oh, Roper, you're a fool, God's my god... (Rather bitterly) But I find him rather too (Very bitterly) subtle... I don't know where he is nor what he wants. ROPER: My God wants service, to the end and unremitting; nothing else! MORE: (Dryly) Are you sure that's God! He sounds like Moloch. But indeed it may be God And whoever hunts for me, Roper, God or Devil, will find me hiding in the thickets of the law! And I'll hide my daughter with me! Not hoist her up the mainmast of your seagoing principles! They put about too nimbly! (Exit More. They all look after him). Pgs. 65-67, A MAN FOR ALL SEASONS A Play in Two Acts, Robert Bolt, Random House, New York, 1960. Linley E. Pearson, Atty. Gen. of Indiana, Indianapolis, for defendants. Childs v. Duckworth, 509 F. Supp. 1254, 1256 (N.D. Ind. 1981) aff'd, 705 F.2d 915 (7th Cir. 1983)

  4. "Meanwhile small- and mid-size firms are getting squeezed and likely will not survive unless they become a boutique firm." I've been a business attorney in small, and now mid-size firm for over 30 years, and for over 30 years legal consultants have been preaching this exact same mantra of impending doom for small and mid-sized firms -- verbatim. This claim apparently helps them gin up merger opportunities from smaller firms who become convinced that they need to become larger overnight. The claim that large corporations are interested in cost-saving and efficiency has likewise been preached for decades, and is likewise bunk. If large corporations had any real interest in saving money they wouldn't use large law firms whose rates are substantially higher than those of high-quality mid-sized firms.

  5. The family is the foundation of all human government. That is the Grand Design. Modern governments throw off this Design and make bureaucratic war against the family, as does Hollywood and cultural elitists such as third wave feminists. Since WWII we have been on a ship of fools that way, with both the elite and government and their social engineering hacks relentlessly attacking the very foundation of social order. And their success? See it in the streets of Fergusson, on the food stamp doles (mostly broken families)and in the above article. Reject the Grand Design for true social function, enter the Glorious State to manage social dysfunction. Our Brave New World will be a prison camp, and we will welcome it as the only way to manage given the anarchy without it.

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