WHCA and LeadingAge WA Take Legal Action to Protect Medicaid Reimbursement for Assisted Living
Washington Health Care Association and LeadingAge Washington filed a complaint earlier this month in Thurston County Superior Court challenging a provision of the 2026 Supplemental Operating Budget that we believe violates the Washington State Constitution. A copy of our complaint-as-filed is attached to this alert.
What Was Challenged — and Why
The 2026 budget includes a provision that silently reduces Medicaid support for assisted living services by $44.9 million by substantively changing the state’s Medicaid reimbursement methodology through the budget process — without transparent, standalone legislation. As you know, the result of the legislature’s action freezes Medicaid reimbursement to outdated 2022 data, circumventing the statutory requirement established in 2019 that DSHS update historical data to no less than two years prior to the current year. This has tremendous negative consequences in providing care in our state, especially for those who rely on Medicaid – nearly 20% of assisted living residents rely on Medicaid for their care in Washington.
Why We Filed
Both WHCA and LeadingAge Washington have a responsibility to ensure the Legislature follows the law, and we are proud to advocate on your behalf. Our members provide care under contracts with the state and rely on transparent, lawful reimbursement methodologies to serve Medicaid beneficiaries effectively. When the budget process is used to make substantive changes to state law without proper legislative action, we must act. Litigation is always our last choice and we are deploying this strategy after careful deliberations by the boards, leadership, policy staff and government affairs counsel for both associations.
What Comes Next
We will keep you informed as this litigation progresses. As of today, we anticipate June 30th as a next milestone in the litigation process. In the meantime, if you have questions or would like more information, please don’t hesitate to reach out to us directly. As part of our advocacy, you may have already seen news coverage that we proactively sought in target publications that are most relevant for our audiences in Olympia. We encourage you review how this effort is already being discussed and covered by The State Standard.
Thank you for the vital care you provide every day to Washington’s most vulnerable residents. We remain committed to advocating on your behalf.
