A U.S. district court rules that a Medicaid applicant whose son gave him a promissory note in exchange for rental property had excess resources. Gragert v. Hendrick (U.S. Dist. Ct., W.D. Okla., No. CIV-11-984-C, May 24, 2012).
George Gragert owned a rental property at the time he entered a nursing home and applied for Medicaid. On May 1, 2011, Mr. Gragert's son gave Mr. Gragert's wife a promissory note in which he promised to pay $28,800 in 96 monthly installments of $330.28. One the same day, the Gragerts deeded the rental property, which was worth $22,800, to their son.
The state denied Mr. Gragert's Medicaid application, finding that he had excess resources due to the promissory note. Mr. Gragert sued the state in federal court, and both parties asked for summary judgment.
The U.S. District Court for the Western District of Oklahoma grants the state summary judgment, holding that Mr. Gragert is not eligible for Medicaid. According to the court, a promissory note is typically considered an available resource and Mr. Gragert offered no evidence to rebut this presumption.
For the full text of this decision, go to: https://attorney.elderlawanswers.com/gragert-v-hendrick-us-dist-ct-wd-okla-no-civ-11-984-c-may-24-2012-9898
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