Effort to Dismiss Medicaid Lien As Time Barred Fails

A New York court rules that a lien recorded against a now-deceased Medicaid recipient's home seven years ago is not barred by a six-year statute of limitations on contractual liens because the statute begins to run when the rights on the lien accrue, not on the date of its recording. Roccanova v. Commissioner of Dept. of Social Services(N.Y. Sup. Ct., Kings, No. 24402, Oct. 21, 2004).

Josephine Roccanova received Medicaid coverage of her nursing home care from August 12, 1996, until her death on October 1, 2001. During that time, on March 14, 1997, the Department of Social Services recorded a lien against her home, which she jointly owned with her son, Leo. However, the Department failed to give notice of the lien. In 1998, Leo Roccanova transferred the home to himself and then, on February 11, 1998, to a revocable trust, with he and his mother retaining life estates.

Noting that New York law provides for a six-year period to institute suit on a Contractual lien, Mr. Roccanova petitioned the court to dismiss the lien as barred by the statute of limitations. He also argued that the lien should be disregarded because the Department never gave notice, as statutorily required. The Department countered that any statute of limitations would begin to run coincident with the Department's rights on the lien accruing, not its date of recording. Therefore, it argued, the statute of limitations on the lien would begin on the date of Mrs. Roccanova's death. The Department also sought to dismiss Mr. Roccanova's order to show cause on the ground of improper service.

The Supreme Court of the State of New York, Kings County, denies Mr. Roccanova's motion to dismiss the Department's Medicaid lien as time barred, agreeing with the Department that the statute of limitations began to run upon Mrs. Roccanova's death. However, the court also rules that in order to be in a position to enforce its lien rights, the Department needs to comply with its statutory requirements regarding notice.

For the full text of this decision, go to: https://www.courts.state.ny.us/reporter/3dseries/2004/2004_24402.htm

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