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Shapiro admin rules for Pennsylvania Medicaid recipients spark lawsuit from people with disabilities

The state says the limits protect Medicaid finances and oversight, while advocates say they affect thousands of people with disabilities and family caregivers.

  • On Wednesday, four Pennsylvanians with intellectual and developmental disabilities filed a class-action lawsuit challenging new Medicaid travel and caregiver rules, which attorneys argue the Pennsylvania Department of Human Services imposed without following required regulatory processes.
  • Democratic Gov. Josh Shapiro's administration reimposed these limits after Commonwealth Court struck them down earlier this year, arguing the court's ruling addressed process rather than the underlying policies themselves.
  • The revised workhour rule, known as the "40/60 Rule," caps caregiver pay at 40 hours weekly for one worker or 60 hours for multiple relatives. Travel services must now occur within Pennsylvania, a stricter limit than previously enforced.
  • Plaintiffs including 29-year-old MichaelAnn Byrne, a Cumberland County resident with a degenerative brain disorder, claim the restrictions prevent meaningful travel; critics warn the rules could force some individuals into institutional care due to staffing shortages.
  • Officials claim the measures protect Medicaid's financial stability amid federal scrutiny of relative caregiving, while the Department has begun updating regulations through a formal process that will include public comment opportunities.
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Spotlight PA broke the news on Friday, September 18, 2026.
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