Barclay Damon
Barclay Damon

Non-profit Repels Agency’s Attempt to Take Back Money Meant to Fund Workers Health Care Costs

A non-profit that provides human services to individuals faced a demand for repayment of funds from the New York State Office for People with Developmental Disabilities. The OPWDD had given funds to supplement the health savings accounts for workers at the non-profit – part of the state’s Health Care Enhancement efforts.

But more than three years after providing the grant, the OPWDD demanded the money back. Our attorneys took up the case for the non-profit, first requesting a hearing - which was granted - and then presenting the case before an administrative judge at the hearing.

Our attorneys argued that the non-profit had used the money properly, funding health savings accounts for worker. Further, our attorneys pointed out that the funding announcement didn’t arrive until the final week of the year, requiring the non-profit to wait until the next year to fund the accounts in order to comply with Internal Revenue Service rules.

Further, our attorneys explained that the money the OPWDD sought wasn’t in the hands of the non-profit but rather had been deposited in the health savings accounts of more than 140 employees.

After two days of hearings, OPWDD decided to drop its case, handing a victory to the non-profit and its workers whose health savings accounts remained intact.


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