But the Court of Appeal has today overturned the High Court decision, saying a "serious error" had been made. The Ministry's approach to the policy was too "narrow" and interfered with Shane's fundamental human rights as a person with disabilities.
"The Ministry's focus on avoiding payment for mere supervision time has apparently caused its failure to recognise that at certain times, particularly at night, essential services must be provided," the judges said.
The judges said it was "plain that Shane can never be left unattended and unsupervised", and Moody's constant motherly devotion had "inestimable benefits for Shane and the state".
They directed the Minister of Health to reassess the case, making allowances for Moody to care for Shane's needs "as they arise at any hour of the day".
Moody said she was "ecstatic" over the decision.
"It's been a long, hard battle. But it's never been about Shane and I - it's actually been about all the families in this situation. You have to fight the system," she said.
"It has never been about the money. It's the principle of the whole thing."
A Ministry of Health spokeswoman said the ministry had received the Court of Appeal's decision and was considering its implications.