No Free Exercise Problem In Denial Of Medicaid For Services In Israel

In Shagalow v. State, (MN Ct. App., Dec. 19, 2006), a Minnesota state court of appeals held that the state's refusal under the Medicaid program to pay for a young woman's residential habilitation program in Israel did not violate her religious freedom rights under the U.S. or Minnesota constitutions. Plaintiff claimed that the only residential habilitation program that adheres to her Jewish Orthodox practices (including gender segregation, strict observance of the Sabbath, and dietary restrictions) is one located in Jerusalem. The court found that the state's decision did not directly infringe plaintiff's religious practices. The state's refusal was based on its need to effectively monitor the quality, health, and financial integrity of services for which it paid.