Indiana Protection and Advocacy Services Comm'n v. Indiana Family and Social Services Administration

Court of Appeals for the Seventh Circuit·Decided August 11, 2025·No. 24-2770·Published

Opinion

In the

United States Court of Appeals For the Seventh Circuit

Nos. 24-2633, 24-2741, & 24-2770 INDIANA PROTECTION AND ADVOCACY SERVICES COMMISSION, et al., Plaintiffs-Appellees/ Cross-Appellants,

v.

INDIANA FAMILY AND SOCIAL SERVICES ADMINISTRATION, et al., Defendants-Appellants/ Cross-Appellees.

Appeals from the United States District Court for the Southern District of Indiana, Indianapolis Division. No. 1:24-cv-00833-TWP-TAB — Tanya Walton Pratt, Judge.

ARGUED APRIL 8, 2025 — DECIDED AUGUST 11, 2025

Before HAMILTON, LEE, and MALDONADO, Circuit Judges. HAMILTON, Circuit Judge. These appeals address Indiana’s obligation to provide medically necessary services to medically fragile children. Individual Plaintiffs E.R. and G.S. are two children with severe, complex, and unpredictable medical conditions. Since birth, both children have required 2 Nos. 24-2633, 24-2741, & 24-2770

around-the-clock care and supervision by a caregiver trained to meet their complex medical needs. Many of their medical needs require actions ordinarily performed by a trained health care professional. For several years, however, the families of E.R. and G.S. have been unable to secure nurses to attend to their needs at home rather than in an institution. In lieu of other options that would forestall institutional placement, both children’s needs have been met by their mothers—their principal caregivers and sole sources of financial support. Both mothers have been trained by their children’s medical teams to perform tasks that would ordinarily be performed by a health care professional. In addition to addressing E.R.’s and G.S.’s more complex medical needs, both mothers also provide the 24/7 supervision and assistance with activities of daily living that both children require.

The Indiana Family and Social Services Administration (FSSA) has reimbursed both mothers for providing medically necessary care to their sons through its Medicaid program. Until recently, FSSA paid them for providing “attendant care services,” which cover unskilled assistance in performing basic life activities, such as eating, bathing, dressing, and toileting , that E.R. and G.S. cannot perform by themselves. FSSA authorized and paid Plaintiffs’ mothers to provide attendant care services through one of its Medicaid waiver programs. The programs are intended to enable individuals who would otherwise require care in an institution to receive services at homes. For years, Plaintiffs have used waiver services to receive their medically necessary care at home from their mothers , who care for them full-time.

Nos. 24-2633, 24-2741, & 24-2770 3

A July 2024 policy change by FSSA would have made both mothers ineligible to be paid providers of attendant care services for their children. If allowed to take effect as applied to these Plaintiffs, it would eliminate both mothers’ ability to care for their children full-time. Plaintiffs’ mothers testified that, if left in place, the July 2024 change would force them to make the difficult decision to have their children institutionalized . The Indiana Protection and Advocacy Services Commission and individual Plaintiffs E.R. and G.S. brought this suit to prevent the July 2024 policy change from going into effect and to obtain an order requiring FSSA to take concrete steps toward securing in-home nurses for both children. Plaintiffs contend that the July 2024 policy change violates the Americans with Disabilities Act’s requirement that States administer Medicaid programs “in the most integrated setting appropriate to the needs of qualified individuals with disabilities .” 28 C.F.R. § 35.130(d). They further allege that the State’s failure to make in-home skilled nursing available violates the Medicaid Act.

After briefing and oral argument, the district court entered a preliminary injunction requiring FSSA to pay Plaintiffs’ mothers for providing attendant care services until in-home nurses are procured for each child. We affirm and remand for further proceedings. As the district court concluded, Plaintiffs have a high likelihood of succeeding on the merits of their ADA claims. Further, we find no abuse of discretion in the district court’s balancing of the equities or its assessment that the public interest is best served by preserving Plaintiffs’ access to medically necessary care and enforcing federal anti- discrimination law.

4 Nos. 24-2633, 24-2741, & 24-2770

I. Factual Background A. The Individual Plaintiffs We begin by summarizing E.R.’s and G.S.’s medical conditions , caregiving arrangements, and financial circumstances .

1. E.R. and His Family E.R. is a six-year-old boy who resides with his mother, Jessica Carter, and his 19-year-old sister. He has a rare genetic disorder called cri-du-chat syndrome that causes chronic lung disease, severe respiratory problems, and epilepsy. His epilepsy causes significant seizures that are not fully controlled by medication. He is also substantially deaf and blind, nonverbal , and non-ambulatory. Although E.R. is six years old, his ailments give him the developmental profile of a ninemonth -old. He therefore requires close, 24/7 care and supervision and assistance with all his activities of daily living.

Ms. Carter is E.R.’s primary caregiver, in addition to being solely responsible for supporting E.R. financially. She trained with E.R.’s medical team for two months to learn how to provide the care and supervision he requires on a daily basis. E.R.’s sister has also received some training from E.R.’s medical team. Today, Ms. Carter and E.R.’s sister are the only individuals who can provide the constant care that E.R. requires outside of a hospital or nursing facility.

2. G.S. and His Family G.S. is a ten-year-old boy on palliative care who resides with his mother, Heather Knight, and his three minor

Nos. 24-2633, 24-2741, & 24-2770 5

siblings. 1 Ms. Knight is G.S.’s primary caregiver, in addition to being solely responsible for supporting G.S. financially. G.S. has a severe form of dysautonomia, a disorder that prevents his body from regulating vital processes, including blood pressure, body temperature, digestion, heart rate, sweating, and breathing. He also has hypoxic-ischemic encephalopathy , a kind of brain damage that affects the central nervous system, and progressive white matter brain loss, which causes developmental and intellectual deficits. In addition , he has Lennox-Gastaut syndrome, a severe condition characterized by repeated seizures. G.S. is nonverbal, quadriplegic , deaf, and severely immunocompromised. Like E.R., he requires close, 24/7 care and supervision and assistance with all his activities of daily living.

B. Services Available through Indiana’s Medicaid Program Due to their severe medical needs and family incomes, Plaintiffs E.R. and G.S. are both eligible for services through Indiana’s Medicaid program, which is administered by defendant Indiana Family and Social Services Administration. Indiana’s Medicaid program is composed of the “State Plan,” which covers traditional Medicaid services, and several home- and community-based waiver programs. “Both the state’s core Medicaid program and its waiver programs must be approved by the federal Center for Medicare and Medicaid Services (CMS), an entity lodged within the Department of Health and Human Services.” Vaughn v. Walthall, 968 F.3d 814, 822 (7th Cir. 2020)

1 Palliative care is a medical approach intended to optimize qualify of

life and to mitigate the suffering of individuals with serious, complex, and oftentimes terminal illnesses.

6 Nos. 24-2633, 24-2741, & 24-2770

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