Sonya Lotzer and Bobbi Lerud were in separate collisions. After settling their negligence claims, they funded special needs trusts without first paying Medicaid liens asserted by the State of Minnesota. Norwest Bank filed a declaratory judgment action alleging that Medicaid’s right to recover is deferred until the beneficiary’s death where a third party recovery is placed in a special needs trust. The district court disagreed and the Eighth Circuit affirmed. The Court found there is no conflict between the lien recovery statute, 42 U.S.C. § 1396k, and the eligibility rule found in 42 U.S.C. § 1396p(d)(4)(A). Section 1396k “is designed to maximize the effectiveness of MA by ensuring Medicaid is a payor of last resort.” Section 1396(d)(4)(A) “provides a mechanism by which persons with long-term disabilities can accept funds to be used for their non-medical needs while remaining eligible for [Medicaid]”. The Court found that Norwest’s interpretation of the statute would negate 1396k entirely because it would allow Medicaid recipients to avoid lien recovery by funding a special needs trust. To give meaning to both provisions, the court held that a State may require a Medicaid lien imposed on the proceeds to a personal injury award or settlement to be satisfied before the remaining funds are placed in a special needs trust.
After Medicaid eligibility is established, 42 C.F.R. § 435.725 addresses how income is treated. For…
In Harrison v. Young (5th Cir. June 6, 2024), the Fifth Circuit considered Ms. Barbara…
From time to time federal regulations covering nursing home quality of care are updated. Thus…
Nursing homes that accept Medicare or Medicaid are required to comply with quality of care…
On June 11, 2024, the Gerontologist published an article on Medicaid enrollment and Intergenerational transfers…
Dementia affects more than 50 million people worldwide. The Virtual Dementia Tour is designed to…