The New Hampshire Supreme Court has ruled that two state measures to contain nursing home reimbursements under Medicaid are invalid.

The agency failed to adhere to specific requirements in the state’s Administrative Procedures Act when it adopted recent changes that cut Medicaid reimbursement rates to nursing homes in the state, according to the court ruling. State law provides a clear statement that the agency must comply with the APA in adopting rules for reimbursement of nursing home services, the court ruled.

The decision reversed a state trial court decision that had rejected the challenge to the rate reductions filed by Bel Air Associates, a nursing home operator in the state.