State Not Required to Deduct Pre-Eligibility Nursing Home Expenses From Patient Amount

A Florida appeals court rules that the state is not required to deduct all of a Medicaid applicant's pre-eligibility nursing home expenses from the applicant's income when calculating the applicant's monthly contribution to nursing home costs. Goodwin v. Florida Department of Children and Families (Fla. Ct. App., 1st Dist., No. 1D12-4430, April 4, 2016).

After Gabrielle Goodwin injured her spinal cord, she entered a nursing home. She applied for Medicaid through a program that required her to contribute to her cost of care by paying a monthly co-pay that was based on her income. To calculate Ms. Goodwin's patient responsibility amount (PRA), the state is required to deduct unpaid medical expenses from Ms. Goodwin's income. The state calculated Ms. Goodwin's PRA at $1,000.

Ms. Goodwin appealed, arguing that the state should have deducted all of her unpaid, pre-eligibility nursing home expenses -- about $70,000 -- from her income. The state denied her appeal, ruling that federal regulations require the state to deduct medical care not covered under the state's Medicaid plan and that Ms. Goodwin's care was covered. Ms. Goodwin appealed to court, arguing that covered care only included care the state actually paid for.

The Florida District Court of Appeal, First District, affirms, holding that the state is not required to deduct all of Ms. Goodwin's pre-eligibility nursing home expenses. According to the court, because the state's "Medicaid program routinely includes and covers the nursing home care that Ms. Goodwin received" before becoming eligible for Medicaid, the state considers them Medicaid-covered expenses.

For the full text of this decision, go to: https://edca.1dca.org/DCADocs/2012/4430/124430_DC05_04042016_094233_i.pdf

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