FOR IMMEDIATE RELEASE
May 8, 2026
Nebraskan with Disabilities, Backed by Four Nonprofits, Sues State Over New Disabilities Assessment System
LINCOLN, NE — Legal Aid of Nebraska, joined by Nebraska Appleseed, the National Health Law Program, and TechTonic Justice, has filed a lawsuit against the Nebraska Department of Health and Human Services (DHHS), challenging the State’s use of its new assessment system, which uses an algorithm to cut Medicaid home-care services for many individuals with intellectual and developmental disabilities.
The lawsuit is filed on behalf of Nicholas Bessey, a Nebraskan with developmental disabilities who relies on Medicaid services provided by the State to remain in the community. These services allow Nicholas to live closer to friends and family and in his community, rather than in an institution at greater expense to the State.
Nicholas’ condition has not improved since last year. But, after DHHS conducted an assessment using the new interRAI system, the State determined the amount of funding Nicholas receives should be reduced by 35 percent.
“Nicholas has had services at the high level of care for 14 years,” said Angela Bessey, Nicholas’ sister and guardian. “Before he had access to this level of care, he was not able to enjoy simple aspects of life that most people take for granted, including his love of going to the park. Without needed services, Nicholas may need to be placed in an institutional setting to get the care he needs.”
The lawsuit alleges that the State’s use of the interRAI assessment tool to determine level of care and individualized budgets violates due process and state law by failing to explain the reason for the funding cut, relying on secret criteria, processes, and policies that have not been properly adopted through required rulemaking procedures. As a result, individuals and families are left without a meaningful way to understand or challenge reductions in services that are essential to daily life.
“These services are essential for people to live safely in their homes and communities,” said Jennifer Gaughan, Director of the Legal Program at Legal Aid of Nebraska. “But right now, individuals and families are being subjected to a system where they cannot see or understand how decisions are being made about their care and funding. When the State reduces funding without explaining how or why those decisions are made, it deprives people of basic fairness and due process.”
The lawsuit seeks to ensure that Nebraskans with disabilities are afforded basic legal protections, including clear notice of how decisions are made and a meaningful opportunity to challenge those decisions.
“For many families, these decisions determine whether a loved one can remain at home, access support, or receive necessary care,” said Robert McEwen, Legal Director at Nebraska Appleseed. “A system that determines whether someone can remain in their home or receive essential care must be transparent and fair. People should not have to guess how life-altering decisions are being made.”
“A Medicaid agency cannot evade their responsibilities through the use of an algorithm,” said Elizabeth Edwards, Senior Attorney at the National Health Law Program. “Whether decisions are made through sophisticated software or a pen and paper, Nebraska must follow processes that establish the criteria and give people a real chance to identify any failures by the system to capture their complex needs or life goals.”
“Nebraska is the latest state to turn to dangerous AI-related technologies like these algorithms to cut Medicaid and other public benefits,” said TechTonic Justice President Kevin De Liban. “Everywhere these technologies are used, people lose health care, go hungry, or can’t pay bills”
Nicholas Bessey is asking the court to require DHHS to implement an objective assessment process that complies with state law and constitutional due process, and to prohibit the State from continuing to use the current process until it meets those requirements.
interRAI tools and similar assessment systems have been linked to major cuts in services for disabled Medicaid recipients in other places, too, including Arkansas and Washington D.C.
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About Legal Aid of Nebraska
Legal Aid of Nebraska was established in 1963 and is the largest provider of direct and free civil legal services, providing free high-quality services to low-income Nebraskans in all 93 counties. Legal Aid’s mission is to stand with those facing justice alone - defending rights, confronting injustice, restoring hope, and opening doors to opportunity. Legal Aid has offices in Lincoln, Omaha, North Platte, Norfolk, Grand Island, and Scottsbluff.
About Nebraska Appleseed
Since 1996, Nebraska Appleseed has fought for justice and opportunity for all Nebraskans. We take a systemic approach to complex issues – such as child welfare, immigration policy, affordable health care and poverty – and we take our work wherever we can do the most good, whether that’s in the courthouse, at the Capitol, or in the community.
About the National Health Law Program
The National Health Law Program, founded in 1969, protects and advances health rights of low-income and underserved individuals and families. We advocate, educate and litigate at the federal and state levels to advance health and civil rights in the U.S. Our lawyers and policy experts fight every day for the rights of the tens of millions of people struggling to access affordable, quality health care coverage free from discrimination.
About TechTonic Justice
TechTonic Justice is a multidimensional, community-based effort to strengthen local justice movements and build long-term power among the people and communities that AI is leaving behind. By integrating litigation, organizing, community education, and narrative advocacy against harmful AI uses, TechTonic Justice supports low-income communities and their allies to secure the work, housing, schooling, benefits, and stability needed for a thriving life.
Media contact:
Melissa Amarawardana, Marketing and Communications Manager, Legal Aid of Nebraska
Mamarawardana@legalaidofnebraska.org
Office: 402.348.1069 x 235
Cell: 402.999.3404
