Disability services provider challenges State mandate forcing costly training switch

Lincoln, Nebraska; August 25, 2025: One of the State’s largest developmental disabilities service providers is challenging a new State mandate that threatens to disrupt care for thousands of vulnerable adults across Nebraska. Integrated Life Choices (ILC) filed suit today against the Nebraska Department of Health and Human Services (DHHS) over a bulletin that forces every provider to spend tens of thousands of dollars replacing their approved emergency safety training with a generic, one-size-fits-all curriculum—undermining approaches tailored to their clients’ needs—or risk losing new clients, vital Medicaid funding, and the ability to provide stable, high-quality services.

“An unelected state agency cannot rewrite the rules on its own,” said Pacific Legal Foundation attorney Allison Daniel. “Nebraska’s mandate forces providers to abandon established, person-centered training programs and replace them with a costly, disruptive curriculum. This is a clear case of government overreach that contradicts Governor Jim Pillen’s stated commitment to eliminating state regulations that are more burdensome than federal standards. We’re fighting to ensure that ILC and other providers can continue to deliver the best care without being hamstrung by illegal decrees.”

ILC provides residential care, employment support, and community services to individuals with intellectual and developmental disabilities through Nebraska’s Medicaid program. Since 2021, the company has used a State-approved training curriculum called Core Supports to prepare staff for behavioral emergencies. Core Supports has reduced emergency incidents and workers’ compensation claims, saving money and improving safety.

In February 2024, the Nebraska Department of Health and Human Services issued Provider Bulletin 24-01, mandating that all certified providers use only the State-selected proprietary system for emergency safety intervention training by July 2025. The bulletin revoked approval of alternative programs without notice or explanation, forcing ILC to spend approximately $60,000 to retrain its staff or lose certification. These are not one-time costs—they will recur every two years for trainer recertification, increase with employee turnover, and expand as regular staff and new hires must be trained by certified trainers, totaling an estimated $153,000 in ongoing expenses. The State suspended new referrals to ILC in July 2025 until the company demonstrated partial compliance with the mandate.

The case is Integrated Life Choices v. Nebraska Department of Health and Human Services. Integrated Life Choices is represented by Pacific Legal Foundation, with assistance from Perry Pirsch of Pirsch Legal Services.