A federal district court rules that the state can recalculate a Medicaid applicant's penalty period when transferred assets are returned, holding that federal Medicaid law does not directly address the issue. Aplin v. McCrossen (U.S. Dist. Ct., W.D. N.Y., No. 12-CIV-6312-FPG, Aug. 25, 2014).
Nursing home resident Florence Aplin transferred assets and then applied for Medicaid. After the state calculated the penalty period as beginning November 2007 and running through September 2011, a portion of the transferred assets were returned to Ms. Aplin. The state determined that the returned assets were excess resources and recalculated the penalty period to begin in July 2009 once the returned assets were spent down and running through April 2013.
Ms. Aplin sued the state in federal court, arguing the state should use the November 2007 penalty period start date. According to New York Medicaid regulations, a recalculated penalty period based on returned assets cannot begin until the assets are spent down. Ms. Aplin and the state both filed motions for summary judgment.
The U.S. District Court, Western District of New York, grants the state summary judgment, holding that the state can recalculate the penalty period when a Medicaid applicant's assets are returned. The court concludes that federal law doesn't directly address this issue, so the state's Medicaid regulation does not conflict with federal law.
For the full text of this decision, go to: https://docs.justia.com/cases/federal/district-courts/new-york/nywdce/6:2012cv06312/89708/29/0.pdf
Did you know that the ElderLawAnswers database now contains summaries of more than 2,000 fully searchable elder law decisions dating back to 1993? To search the database, click here.
Subscribe to the Knowledge Bank.
