A New York trial court finds that Ahlborn does not apply when the state's Medicaid lien is based on estate recovery law. In the Matter of the Estate of Heard (N.Y. Surr. Ct., Monroe County, No. 2004-2039/A, Nov. 30, 2009).
Oscar Heard was a Medicaid recipient and a resident of a nursing home for several years. While at the facility, Mr. Heard suffered several injuries. After he died, his estate sued the nursing home for negligence, and the state filed a Medicaid lien against the estate. The nursing home agreed to settle the lawsuit for $200,000, to be divided into thirds: one-third for attorney's fees, one-third to settle the Medicaid lien, and one-third to Mr. Heard's estate.
The estate argued the Medicaid lien could not exceed the cost of medical care provided to Mr. Heard, citing the Supreme Court's holding in Arkansas Department of Human Services v. Ahlborn, 547 U.S. 268, (2006). The state argued that under federal and state law, it is required to recover from the estate of a recipient all Medicaid assistance provided to the recipient, which amounted to more than $400,000.
The New York Surrogate's Court holds that the state is entitled to seek recovery for the entire lien. According to the court, because the state did not base its claim on an assignment of the decedent's right to recover medical costs, Ahlborn does not apply.
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