JACOBS, Circuit Judge:
The Medicaid Act allows states at their option to seek a federal waiver of certain statutory rules in order to underwrite home care not normally reimbursable under Medicaid for particular groups of people for whom such care would be cheaper than the institutional care that they otherwise need. 42 U.S.C. §§ 1396a(a)(10)(A)(ii)(VI) and 1396n(c) (1988). The State of Connecticut exercised that option and, pursuant to the terms of the federal...
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