The mineral rights underlying property contiguous to the home of a Medicaid applicant and her spouse are excluded from consideration as a resource in determining Medicaid eligibility. Ouzts v. Louisiana Dep., Health, Hospitals (La. Ct. App., 2d. No. 38,634-CA, July 29, 2004).
Geraldine Ouzts entered a nursing home in March 2001 and applied for Medicaid coverage the following year. Mrs. Ouzts and her husband, John, own 59 acres contiguous to their home. The couple also owns the mineral rights underlying the property, for which they receive royalty checks from companies leasing those rights.
The Louisiana Department of Health and Hospitals (DHH) valued the mineral rights at $65,744.35 and rejected Mrs. Ouzts's Medicaid application for excess resources. An administrative law judge (ALJ) affirmed the denial of eligibility on the grounds that the mineral rights are not part of the exempt family home but are real property rights. The district court reversed the ALJ's decision and remanded the matter to DHH for a redetermination of eligibility. DHH appealed.
The Court of Appeal of Louisiana, Second Circuit, agrees with the trial court, ruling that "because the mineral rights are under land that is excluded home property, the rights should likewise be excluded."
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