No specific laws identified for this ruling.
Class action settlement requiring federal and state defendants to modify computer systems to identify and restore Medicaid benefits to disabled individuals whose SSI benefits were terminated due to DAC benefits, with a supplemental settlement in 2000 addressing additional beneficiary categories.
McMahon v. Novello: Disability Benefits Settlement
This case involved disabled individuals whose Medicaid benefits were wrongfully cut off due to problems with government computer systems. The issue arose when people receiving Supplemental Security Income (SSI) had their benefits terminated because they became eligible for Disabled Adult Child (DAC) benefits. When this happened, the computer systems failed to properly maintain their Medicaid coverage, leaving vulnerable people without essential healthcare benefits.
The plaintiffs argued that the New York State Department of Social Services and Erie County Department of Social Services failed to accommodate disabled individuals' needs and breached their contractual obligations to provide benefits. This became a class action lawsuit representing many affected people.
The case resulted in a settlement agreement requiring both federal and state agencies to fix their computer systems. The agencies had to modify their technology to properly identify disabled individuals whose Medicaid was incorrectly terminated and restore those benefits. A supplemental settlement in 2000 expanded protections to additional groups of beneficiaries.
What this means for workers: This case shows that government agencies must maintain proper systems to protect disability benefits. When computer errors or administrative failures cut off benefits, affected individuals can band together in class action lawsuits to demand fixes and restoration of their rightful coverage.
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