The Associated Press

FRANKFORT - Legal Aid lawyers are accusing the state of failing to comply with a federal judge's order to reinstate thousands of people who were cut from the Medicaid program.

The lawyers say in papers filed Wednesday that the state missed one court-imposed deadline for reinstating some of those affected by the cost-cutting measures and is facing another one on Monday.

A state official Thursday said the state believes it is complying but has asked the court for clarification.

Anne Marie Regan, senior staff attorney with the office of Kentucky Legal Services Programs, said if U.S. District Judge Joseph Hood agrees with Legal Aid that the state is violating his April 16 order, she will ask the judge to hold state officials in contempt of court if they don't comply.

"We think they're not complying with the order at all," Regan said. Her agency filed suit Oct. 2 on behalf of about 3,500 elderly and disabled people affected by the cuts.

State officials have said they're trying to carry out the order.

Dr. James Holsinger, Health and Family Services Cabinet secretary, said the agency informed the court April 30 of the actions it had taken and sought clarification.

"We believe we are in compliance, but we will follow the directives of the court," Holsinger said in a statement released Thursday.

Hood earlier ordered the state to reinstate anyone who lost or was denied services under cuts that began in April 2003 under the administration of former Gov. Paul Patton. Gov. Ernie Fletcher scaled back the cuts on Jan. 30.

But Legal Aid lawyers said the Fletcher administration hasn't moved aggressively to identify all those who lost or were denied services under the cuts. Those affected included people in nursing homes or receiving services at home or in the community, such as home health care or adult day care.

Holsinger said everyone who was denied services through the April 2003 change and then appealed has continued to receive services.

"Earlier this year, we notified people who had been denied services of their opportunity to re-apply for Medicaid coverage," Holsinger said. "We plan to re-notify them to make sure they have every opportunity to receive services."

But Legal Aid lawyers said that falls short of the order to "fully reinstate" those cut from the program or denied services.

Hood ordered the cabinet to reinstate by May 3 anyone cut from the program and to reconsider by May 17 any first-time applicants who were denied services. Most of those denied services appealed, and Medicaid officials are continuing to hold hearings and review those cases even though there no longer is a need to do so under the judge's order to reinstate them, the Legal Aid motion said.

Medicaid has done nothing to identify and review the cases of about 930 people who were cut from the program and did not appeal, thereby losing services, the motion said.