DOJ Reaches Settlement With Colorado on ADA Olmstead Lawsuit


Special Needs Answers legal update.On October 31, 2024, the United States entered into a settlement agreement with the State of Colorado to resolve litigation under the integration mandate of Title II of the Americans with Disabilities Act (ADA), as interpreted in the Supreme Court decision Olmstead v. L.C.

After receiving complaints alleging disability discrimination against Colorado nursing facility residents, the U.S. Department of Justice (DOJ) opened an investigation in November 2019. The investigation, initiated under Title II of the ADA, sought to determine the adequacy of the State of Colorado’s (the “State”) services for adults with physical disabilities who wish to transition to, or remain in, their communities.

On March 3, 2022, the DOJ issued a Letter of Findings stating that the State was failing to comply with the integration mandate of Title II of the ADA. In the Letter, the DOJ notified the State that it was violating the ADA’s integration mandate in its provision of long-term services and supports for adults with physical disabilities.

The investigation found that the State had been unnecessarily segregating adults with physical disabilities in nursing facilities and failing to ensure such individuals have an opportunity to live in community-based settings, such as in their homes, with services appropriate to their needs.

After the State and the DOJ failed to reach a resolution based on the investigation’s findings, the DOJ sued the State on September 29, 2023 (United States of America v. The State of Colorado, D. Colo., No. 23-cv-2538).

The October 31, 2024, settlement agreement (the “Agreement”) resolves the DOJ’s Letter of Findings and the Case.

The State does not concede the accuracy of any of the statements in the Letter of Findings, the Case, or the conclusion that it has violated Title II of the ADA as interpreted by the U.S. Supreme Court in Olmstead v. L.C., 527 U.S. 581 (1999). Though it is entering into the Agreement, the State is not admitting that corrective measures are necessary to meet the requirements of the ADA or the Olmstead decision, or that it is not currently complying with the ADA. The State enters into the Agreement on its own accord and in its own best interest, to preserve judicial economy and state resources, and to best serve individuals with disabilities who are Medicaid members or are Medicaid-eligible.

Even though the State disputes many of the findings and conclusions within the Letter of Findings, it has fully cooperated with the investigation and has worked with the DOJ to resolve the identified concerns. Both parties agree that it is in their mutual interest to avoid further litigation.

The DOJ acknowledges that the State has begun implementing certain provisions of the Agreement.

To increase community integration for adults with physical disabilities, the State has made significant commitments to:

  • Help thousands of nursing facility residents move back to their communities;
  • Identify people at risk of unnecessary nursing facility admission and help them stay in their homes with the services they need;
  • Provide people with the information they need to make informed choices about whether to live in nursing facilities or receive the services they need in their homes;
  • Connect people more quickly to Medicaid long-term care services in their communities;
  • Increase opportunities for people with disabilities to hire and supervise their own caregivers;
  • Support family caregivers;
  • Facilitate prompt transitions for interested nursing facility residents to their communities by reducing administrative bottlenecks and problem-solving common transition barriers; and
  • Improve and expand services that help people find and keep affordable, accessible housing in their communities.

The DOJ and the State have agreed that the federal district court will retain jurisdiction to enforce the Agreement and that an independent monitor will evaluate the State’s compliance.

Read the full complaint.