Friday, January 10, 2014

Medicaid Puts New "Wrinkle" on Old Topic of Marriage Penalties

I can remember when tax-savvy couples might plan their wedding dates according to the tax impact, and thus there was talk in political circles about the "Marriage Tax Penalty." 

Recently, one of our Elder Law Prof Blog readers wrote to suggest we post articles about the impact of late-in-life marriage on Medicaid eligibility.  Good idea!  Many might assume that a well-drafted prenuptial agreement should preserve a split in retirement savings.  That assumption could well be dangerous -- in the context of Medicaid.  Here are links to a few recent articles, with brief excerpts to whet the appetite for reading more:

Late Life Love (Part II), by Monica Franklin, 49 Tennessee Bar Journal 30 (Feb. 2013):

"When discussing prenuptial agreements and marriage, we need to advise our clients that if one spouse needs Medicaid to pay for long-term care, the assets of both spouses will be considered by the Medicaid agency ([Tennessee] Department of Human Services, DHS). However, if the couple chooses cohabitation, DHS only considers the assets of the disabled partner. This information is crucial for couples considering late-life marriage."

Paying for Long-Term Care in Illinois, by William Siebers and Zach Hasselbaum, 100 Illinois Bar Journal 536 (October 2012), noting that with changes to Medicaid law, effective in Illinois in 2012:

"Eligibility for long-term care assistance will be denied  [in Illinois] if the community spouse or institutionalized spouse refuses to disclose assets during the application process. Prior to this change, a community spouse with separately owned assets held for at least five years could decline to have those assets considered in the application process for the institutionalized spouse.  This scenario commonly arose in second marriage situations. . . . "

Gray Divorce and Remarriage, by William DaSilva and Steven Eisman, 83 New York State Bar Journal 26 (July/August 2011):

"Another growing trend in the practice of elder law -- relating to both matrimonial law and health care planning -- is the use of so-called 'Medicaid divorces.' In fact, the use of Medicaid gifting and Medicaid planning received judicial sanction from New York's highest court in 2000 in [the case of] In re Shah, [95 NY 2d 148 (2000)].  In this type of divorce, the 'spouse in the community' ... stands to lose a lifetime's worth of savings unless a health care plan is devised that provides care for the ill or incapacitated spouse and simultaneously protects the assets of the spouse in the community so that both spouses do not end up impoverished wards of the state.  A prenuptial agreement alone will not defeat a claim of Medicaid."

In my admittedly quick search for articles on the topic of prenuptial agreements and Medicaid, I did not find a comprehensive discussion by academics or law students in an academic law review. Rather, as suggested by the above citations, the articles I found were all state specific, from state bar journals.  Perhaps one of our law school colleagues has a work-in-progress or article to share?  Or, alternatively, perhaps some of our academic readers are looking for a good, comprehensive research topic for the future.

For our lay readers, this is a good opportunity to remind you this Blog is not intended to be a source of legal advice for specific issues.  Of course, we do recommend that you consult with an experienced elder law attorney for state-specific advice!  

January 10, 2014 in Ethical Issues, Health Care/Long Term Care, Medicaid, Property Management, State Statutes/Regulations | Permalink | Comments (1) | TrackBack (0)

Thursday, January 9, 2014

NBER Bulletin on Aging and Health, 2013, Vol. 2 has been released

The National Bureau of Economic Research has released 2013/Vol. 2 of the Bulletin on Aging and Health.  The 2013 No. 2 Bulletin includes the articles below:

1)  The Value of Medicaid to Older Households
    by Mariacristina De Nardi, Eric French, and John Bailey Jones

2)  Who Uses the Roth 401(k)?
    by John Beshears, James Choi, David Laibson, and Brigitte Madrian

3)  Do Financial Incentives Induce Disability Insurance Recipients to Return to Work?
    by  Andreas Kostol and Magne Mogstad

Also:  Abstracts of Selected Recent NBER Working Papers

NBER Profile:  Michael Baker

View a printable PDF copy of the 2013 No. 2 NBER Bulletin on Aging and Health here.

The HTML version is available at the Bulletin's homepage.

January 9, 2014 in Health Care/Long Term Care, Medicaid, Retirement | Permalink | TrackBack (0)

Wednesday, January 8, 2014

Two Americas for the Poor: Tracking Political Division on Medicaid

Bloomberg News writers Alex Nussbaum, Alison Vekshin and Gigi Douban offer a timely article, available on the MSN website, titled "Obama Medicaid Split Creates Two Americas for the Poor." The article opens by contrasting the impact of states deciding whether to expand the availability of Medicaid, using the experiences of two women, one in California and one in Alabama, each facing health care crises:

"The women’s fates are the consequence of a political debate that’s divided the U.S. roughly along party lines: Democratic-led states have expanded Medicaid programs for the poor under the health law; most Republicans have refused. While the law’s online exchanges draw more scrutiny, it’s Medicaid that may determine the health of millions of Americans. The expansion is one of the twin pillars created by the law to supply medical care to the nation’s uninsured, complementing subsidies for private insurance."

The article also has useful links to health policy and economics studies, as well as commentary by political leaders, including Pennsylvania's former Governer Ed Rendell.

January 8, 2014 in Health Care/Long Term Care, Medicaid, State Statutes/Regulations | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 7, 2014

Overview of new law relating to Ahlborn

Elder law attorney and Medicaid law guru Julian Zweber  sent along this brief summary of  section 202 of the Bipartisan Budget Act of 2013.  This provision of the budget bill addresses states' ability to recover Medicaid costs from PI settlements.  Here's his take on the new law:

I've reviewed the recent amendments that appear to affect the Ahlborn case and conclude that the Ahlborn is still good law but more MA expenses may now be recovered under the assignment of claims against third parties.   I conclude:

    1.  The changes are mandatory on the states.  See the emphasized language in 1396k(a).  The state plan "shall" rather than "may."
    2.  The amendments do not change the nature of the assignment of benefits.  See the amendment to 1396k(a)(1)(A).  The Ahlborn court focused on the nature of an assignment as opposed to a subrogation claim.  A recipient of MA continues to assign his or her rights to MA for recovery from liable third parties for expenses paid by MA.
    3.  The state's right to recovery is expanded from just medical expenses paid by MA, to all expenses paid by MA under the State Plan.  This would include non-medial expenses such as benefits provided under home- and community-based services.
    4.  The expansion of allowable expenses subject to assignment and recovery is the only change made by these amendments.
    5.  An apportionment of any settlement that provides less than full recovery of all damages would still be required to determine which part of the settlement is attributable to claims subject to MA assignment.  To the extent that the MA part of the  settlement pie becomes bigger, the injured party will receive less from the settlement, but the MA claim does not have to be paid in full before the plaintiff recovers.  Ahlborn is not overturned.

Download the text of the legislation.

Thank you, Julian!

January 7, 2014 in Medicaid, State Statutes/Regulations | Permalink | TrackBack (0)

Monday, January 6, 2014

AALS Program Report: The Financial Challenges of Aging

Skating in NYC Photo (c) 2014 Katherine C. PearsonCatching up after a busy weekend at the Association of American Law Schools (AALS) Annual Meeting 2014 in New York City, I'm happy to report the presentations at the Section on Aging and the Law seemed to go smoothly and were well received, with a very engaged audience.  While the weather made travel to and from NYC a bit tricky, it also seemed to "encourage" strong attendance at sessions.  (I found myself skating even when not visiting the rink at Rockefeller Plaza!)

Section Chair Susan Cancelosi (Wayne State) was snowed out -- but I suspect Susan would be pleased by the reaction to the program she planned.  Thank you, Susan, for putting together the theme, securing speakers, making sure we were all on track, and creating a back-up weather plan.  We've decided you should be the moderator next year, if you don't mind!

Dick Kaplan (Illinois) led off the panelists, using his best "Dr. Phil" style to walk us through (both literally and metaphorically) the latest changes to Medicare triggered by the Affordable Care Act and other recent legislation.  Recognizing that many in our audience do not teach elder law or health care law, Dick offered information useful to all academics who "expect" to retire.  For example, recent information from the Employee Benefit Research Institute supported his forecast that a 65-year old person retiring in 2012 would need substantial saving just to cover out-of-pocket medical expenses, in the range of  $122,000 -$172,000 for men and between $139,000 - $195,000 for women (with projections also affected by prescription drug usage).  Dick reminded us that this figure does NOT include any costs for long-term care.  

Next on the panel was Laura Hermer (Hamline), who is new to our Section -- and a very welcome addition.  Using her health law background, Laura outlined the maze of programs, including state plan innovations and waiver programs under Medicaid, that may provide "long-term services and supports" (or LTSS -- the latest acronym that seems to be an intentional step away from a "care" model) for older persons.  Her presentation emphasized the shift to home or community based care, but Laura made clear that this shift depends heavily on unpaid care by family members. 

Incoming Section Chair Mark Bauer (Stetson) made effective use of visual images of 55+ communities in Florida to demonstrate his concern that exemptions from civil rights protections that permit age-restricted communities may not be matched by actual benefits for the older adults targeted as residents.  Mark stressed the percentage of housing that is not designed to match predictable needs for an aging population.  Examples included multi-story designs without elevators, steps into even ground-level units, and bathrooms without wheel-chair accessibility.  Mark's presentation expanded on his recent article in the University of Illinois' Elder Law Journal.

Speaking last, my topic was the latest state law developments tied to federal laws that authorize nursing homes to compel a "responsible party" to sign a prospective resident's nursing home contract.  States are creating potential personal liability for costs of care for family members, agents or guardians, or transferors or transferees of resources, if the resident is deemed ineligible for Medicaid.  Here are links to a copy of the slides I used for my  presentation on "Revisiting Nursing Home Contracts," as well as to a related short article I was invited to write for the Illinois State Bar Association's Trusts & Estates Section in December 2013.

The panel presentations were followed by great questions and observations from the audience, further highlighting the financial challenges of aging.  Plus, it was wonderful to see several new members volunteering to join the planning committee for future programs for the Aging and Law Section of AALS.  And welcome back to the board to Alison Barnes (Marquette Law).

January 6, 2014 in Consumer Information, Ethical Issues, Federal Statutes/Regulations, Health Care/Long Term Care, Housing, Medicaid, Medicare, Programs/CLEs, Retirement, State Statutes/Regulations | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 1, 2014

What Retiring Academics Need to Know About Health Care: Richard Kaplan's Presentation at AALS

Professor Richard KaplanUniversity of Illinois' Richard Kaplan will lead off the presentations at AALS's Aging and Law section meeting later this week.  The theme of the program is "From the Affordable Care Act to Aging in Place:  What You Need to Know as You Grow Older." 

Professor Kaplan's presentation will focus on Medicare, and he has a practical focus, relevant to all AALS attendees (either sooner or later!). He observes, "Paying for health care costs in retirement is very different from what most academics have experienced during their working lives. This session will explain the four distinct Parts of Medicare and the various decisions that retirees must make regarding the coverages they want and the costs those decisions entail."

Dick is well-known to elder law faculty and to the broader world of health-care and retirement income scholars, both nationally and internationally.  His article "Top Ten Myths of Medicare," published in 2012, is one of the leading downloads on SSRN.

The Aging and the Law Section panel program runs from 3:30 to 5:15 on Friday, January 3, with a short Section Business meeting after the program. 

January 1, 2014 in Federal Statutes/Regulations, Health Care/Long Term Care, Medicaid, Medicare | Permalink | Comments (1) | TrackBack (0)

Monday, December 30, 2013

AALS Aging & Law: Laura Hermer to Address ACA Impact on Seniors

Hermer_Laura_webMuch of the national media attention on the Affordable Care Act has focused on those who were previously uninsured or those who must change policies and coverage.  But there are also important studies emerging on how the ACA will affect seniors. 

At the AALS annual meeting in New York City, Hamline University School of Law's Laura Hermer will address changes to Medicaid in the Affordable Care Act that impact elders, most notably concerning long term care and care coordination for "dual eligibles." Professor Hermer will also discuss some of the many problems for beneficiaries that remain or, in some cases, may be created following ACA-related changes.

Professor Hermer has two new articles scheduled for publication in 2014, including "Enterprise Liability: Medical Malpractice Reform in the Service of Improved Health Care Quality and Outcomes," to be published in the Journal of Health Care Law and Policy, and "The Future of Medicaid Supplemental Payments: Can They Promote Patient-Centered Care?," co-authored with Dr. Merle Lenihan of University of Tennesseee, to be published in the Kentucky Law Journal.

Laura's ACA forecast presentation will be part of the panel assembled by Wayne State Law Professor Susan Cancelosi for the Aging and Law Section at the AALS meeting on Friday, January 3, scheduled to begin at 3:30 p.m. 

December 30, 2013 in Health Care/Long Term Care, Medicaid, Medicare | Permalink | Comments (0) | TrackBack (0)

Thursday, December 26, 2013

See You in NYC: AALS Aging & Law Section Program on January 3, 2014

Hard to believe, but AALS Annual Meeting 2014 is just around the corner.  Aging & Law Section Chair Susan Cancelosi (Wayne State Law) has planned a great program, and we look forward to the interaction between panel members and the audience.

The theme is "From the Affordable Care Act to Aging in Place: What You Need to Know as You Grow Older."

Speakers include:

Mark Bauer (Stetson Law) on "Aging and 55+ Age-Restricted Housing."

Laura Hermer (Hamline Law) on "changes to Medicaid under the Affordable Care Act that impact the elderly, with particular attention to several state implementations of relevant state plan options and demonstration projects involving dual eligibles and others."

Richard Kaplan (Illinois Law) on “the very different world of financing health care that awaits retirees, including how to  navigate the various Parts of Medicare and their attendant problems.”

Katherine Pearson (Penn State Law) will discuss "the emerging trend of states adopting laws authorizing nursing homes to collect unpaid debts from family members or fiduciaries."

I'll provide more details about the individual speakers' programs, both before and after the event.  But remember to mark your calendar for New York City, on Friday,  January 3, at 3:30-5:15.  As always, there will be a short business meeting following the presentations and discussion.  

December 26, 2013 in Health Care/Long Term Care, Housing, Medicaid, Medicare | Permalink | Comments (0) | TrackBack (0)

Tuesday, December 24, 2013

Son's Challenge to Nursing Home Claim as "Prohibited Guarantee" Fails

I've been reading discussions lately on elder law listservs, debating whether nursing homes'  attempts to hold family members  contractually liable to pay bills violate the Nursing Home Reform Act's bar on mandatory third-party guarantees of payment. 

This issue was addressed recently by the United States District Court for the Western District of Pennsylvania in White v. Jewish Association on Aging, where a pro-se plaintiff alleged a violation of NHRA at 42 U.S.C. §§ 1395i-3(c)(5)(A)(ii) and 1396r(c)(5)(A)(ii), tied to allegations that his mother's nursing home required him to sign the admission agreement for his mother. 

The U.S. District Court dismissed the suit, rejecting  NHRA as permitting a private right of action, but then also addressing the specific "guarantee" issue urged by the son:  

"In signing the Admissions Agreement and agreeing to become the Responsible Party... Plaintiff consented to apply Ms. White's financial resources to cover her care.... The Agreement also explicitly states that the Responsible Party's failure to apply a Resident's income and assets to pay for the care would result in the Responsible Party becoming personally liable—not for the bill itself— but 'for any misappropriation or misapplication of Resident's funds or assets.' Plaintiff makes no allegation that Defendant is doing anything other than what is expressly permitted—requiring him to apply Ms. White's finances to cover her costs. Thus, Plaintiff is not being treated as a guarantor, and his claim should be dismissed." (citations ommited)

Hat tip to Rob Clofine, Esq. of York, Pennsylvania for the White case link.

December 24, 2013 in Federal Cases, Federal Statutes/Regulations, Health Care/Long Term Care, Medicaid, Medicare | Permalink | Comments (0) | TrackBack (0)

Friday, December 20, 2013

Senate Committee on Aging Takes Testimony on Future of Long-Term Care Spending

On December 18, the U.S. Senate Special Committee on Aging invited testimony on whether and how it is possible to create more affordable long-term care.  The hearing follows a report by the U.S. Commission on Long-Term Care (new website, by the way, serving as the home for the Commission's work, which concluded with the release of its report in late September). The Commission made specific recommendations, but failed to reach consensus on how to pay for rising costs.  One area of disagreement is over whether to mandate purchase of long-term care insurance.  The Senate Committee's website permits viewing of the recorded hearing, plus downloadable copies of written testimony.

Witnesses included:

Bruce Chernof, MD, President and Chief Executive Officer, The SCAN Foundation

Mark J. Warshawsky, Visiting Adjunct Scholar, American Enterprise Institute

Judy Feder, PhD, Professor, Georgetown University McCourt School of Public Policy and Fellow, Urban Institute, and

Anne Tumlinson, MMHS, Senior Vice President, Avalere Health

December 20, 2013 in Federal Statutes/Regulations, Health Care/Long Term Care, Medicaid | Permalink | Comments (0) | TrackBack (0)

Tuesday, December 17, 2013

Family Caregiver Assessments: New Frontier Indicated by AARP Policy Report

One of the most important changes in U.S. funding for long-term care is the move to providing financial support for care in the home or less institutional settings, through Medicaid's HCBS waiver programs.

This month the AARP Public Policy Institute, with support from The Hartford Foundation and the (new) U.S. Administration on Community Living and the (older) Administration on Aging, issued an important report on the corresponding need for assessment not just of the recipient, but of the family members who will serve as caregivers: 

"Family support is often essential for helping older people and adults with disabilities continue to live at home and in the community.  Yet the work of family caregivers can be demanding—physically, emotionally, and financially.  If family caregiver needs are not assessed and addressed, their own health and well-being may be at risk, which may lead to burnout—jeopardizing their ability to continue providing care in the community."

Further, the study, titled "Listening to Family Caregivers: The Need to Include Family Caregiver Assessment in Medicaid Home- and Community-Based Service Waiver Programs," reviews current practices among the states, concluding that "the concept of assessing a family caregiver's own needs is not well understood in many Medicaid HCBS program."

The report makes eight specific policy recommendations, including:

 "When a family caregiver assessment is conducted, family caregivers must be directly asked about their (a) own health and well-being, (b) levels of stress and feelings of being overwhelmed, (c) needs for training in knowledge and skills in assisting the care recipients, and (d) any additional service and support needs."

The report also recommends that assessment of caregivers be recorded and made a part of the HCBS client's record, including electronic records.  The report compares practices among the fifty states and D.C., identifies potential best practices, and concludes that many states' current assessment tools are inadequate. 

Hat tip to ElderLawGuy Jeff Marshall for "tweeting" on this important new study.

December 17, 2013 in Consumer Information, Federal Statutes/Regulations, Medicaid, Medicare | Permalink | Comments (0) | TrackBack (0)

Friday, December 13, 2013

Wyoming Supreme Court: Expanded Medicaid Estate Recovery Permits Lien to Attach

In Estate of Marusich, 2013 WL 6450238, decided December 10, 2013, the Wyoming Supreme Court ruled the state could recover costs for Medicaid from the community spouse's estate, where the property in question, the marital home, had been owned as tenants by the entirety at the death of the Medicaid receipient (husband). Key points include:

  • Wyoming has adopted "expanded" estate recovery to include any real property in which a care-receiving individual had any legal title or interest at time of death;
  • Home was titled to the individuals as "husband and wife," which created a "tenancy by the entirety" under state law;
  • Husband received Medicaid benefits during his nursing home stay, until his death in 2005;
  • Wife continued to live in the marital home until her death, intestate, in 2012.

The Court distinguished rulings in Minnesota and Tennessee, where the agencies were barred from applying expanded estate recovery in cases where the care-receiving spouse's interest in marital property was transferred by the Medicaid recipient into the sole name of his or her community spouse before death: 

"While Barg [752 N.W.2d 52 (Minn. 2008)] and Smith [2006 WL 2114250 (Tenn. Ct. App. 2006)] ultimately reached a result consistent with that sought by the Marusich Estate, they do not support the argument that the house should not be available for recovery. In fact, those cases compel the opposite conclusion.  Given Mr. Marusich owned an interest in the house when he died (unlike the reciepient spouses in Barg and Smith), it was within the Department's authority to file a lien even though his interest passed by operaton of law to Mrs. Marusich upon his death."

The outcome in Wyoming points to the significance of expanded Medicaid estate recovery, and the potential importance of estate "re-planning" once the first spouse enters into Medicaid-paid care

December 13, 2013 in Estates and Trusts, Federal Statutes/Regulations, Medicaid, State Cases | Permalink | Comments (0) | TrackBack (0)

Monday, December 9, 2013

Interstate Challenge to Pennsylvania Filial Support Claim

As readers of this blog will be aware from previous posts, Pennsylvania courts are willing to enforce the Commonwealth's filial support law.  The law, at 23 Pa. C.S.A. Section 4603, makes spouses, parents or adult children potentially liable to "care for and maintain or financially assist" each other where the care-needing family member is "indigent."  Pennsylvania's law has been interpreted as giving nursing homes or other third-party caregivers standing to sue. 

The suits can cross state lines, usually because the target defendant is an out-of-state son or daughter of a nursing home resident in Pennsylvania, thus creating potentially interesting questions of personal jurisdiction.  But the latest suit I've seen is an interesting twist on that fact pattern.

In Eades v. Kennedy, P.C. Law Offices, filed in United States District Court for the Western District of New York, a New York husband and daughter are the plaintiffs, suing a Pennsylvania law firm that attempted to collect  a nursing home debt "by means of at least one item of correspondence and at least one telephone call."  The plaintiffs in the New York suit are also apparently defendants in a Pennsylvania lawsuit filed by the nursing home.  At issue is a bill for $8,000.  The nursing home in question, located in Corry, Pennsylvania, is just a few miles south of the New York state line. 

In the New York suit, Eades asserts that the collection attempts violated the Fair Debt Collection Practices Act (FDCPA) and further that the law firm's allegations of their liability under Pennsylvania's filial support law is "preempted" by federal Medicare/Medicaid law, under a provision of the Nursing Home Reform Act (NHRA) that bars a nursing home from requiring "a third party guarantee of payment to the facility as a condition of admission."

The New York federal district court dismisses the suit, concluding that there is no "jurisdiction," apparently both on subject matter jurisdiction and personal jurisdiction grounds.  But then the ruling gets more interesting.  The court proceeds to address the substantive claims by the family members, and seems to conclude that a cause of action under the FDCPA is not triggered by a "support" claim, including a filial support claim.  Further, the court suggests there is no preemption under federal law for the following reasons:   

"The NHRA holds that nursing homes may not require an individual's relatives to assume personal liability for the individual's care as a condition of admission or continued residence in the facility.  The Pennsylvania indigent statute cannot be said to cover the same territory: it merely holds that where a resident is or becomes indigent, a nursing home may seek payment or reimbursement for the resident's care from their spouse, children or parents.  It does not bypass the NHRA by permitting or excusing the assumption of personal liability by a relative for a nursing home resident's care as a consideration of admission or continued residence -- the sole evil that the NHRA ... appears to have been intended to prevent." 

On December 3, 2013, the New York court dismissed the father/daughter's amended complaint for failure to "state a claim." The case is Eades v. Kennedy, P.C. Law Offices, No. 12-CV-66801,  2013 WL 6241272 (W.D. N.Y. 2013).   

December 9, 2013 in Federal Cases, Federal Statutes/Regulations, Health Care/Long Term Care, Medicaid, Medicare, State Statutes/Regulations | Permalink | Comments (0) | TrackBack (0)

Thursday, December 5, 2013

Pennsylvania: Renunciation of Interest in Trust Triggers Ineligibility for Medicaid

Calling it a "matter of first impression," an intermediate appellate court in Pennsylvania has ruled that a woman's renunciation of her interest in a dissolved marital support trust was a transfer "for less than fair consideration,"  thus triggering ineligibility when she entered a nursing home and applied for Medicaid. 

As reported in Schell v. Pa. Department of Public Welfare, decided December 4, 2013 by the Pennsylvania Commonwealth Court, a testamentary trust was dissolved in 2009, leaving approximately $300,000 to be distributed to the settlor's widow.  The widow formally renounced her interest in the distribution, permitting the sum to be divided equally between the couple's two children, one of whom was disabled.  Two years later, in 2011, the widow entered a nursing home and applied for Medical Assistance. 

While DPW accepted the widow's "hardship" argument regarding the half distributed to the disabled daughter, the Court upheld DPW's challenge to the distribution of the other half to the son. The Court rejected the widow's argument that the penalty period could not apply to a trust created more than five years before her nursing home admission, on the ground that the key event was termination of the trust within the Medicaid lookback window:

"Once the trust was dissolved, Petitioner became entitled to any remaining income and principal therein. This income and principal was available for Petitioner to use for her support, but she made an affirmative decision not to receive the same, without any good cause explanation for so doing. . . . Upon Petitioner’s renunciation, the trustee distributed half of the remaining income and principal from the trust, $151,231.76, to her son. Petitioner received nothing in return, and, thus, the [Bureau of Hearings and Appeals] properly concluded that this transfer was for less than fair market value, thereby resulting in the imposition of a penalty period of 582 days." 


December 5, 2013 in Estates and Trusts, Federal Statutes/Regulations, Health Care/Long Term Care, Medicaid, State Cases | Permalink | TrackBack (0)

Thursday, November 21, 2013

End-of-Semester Topics: Wrapping Up in Elder Law

I sometimes try to hold a provocative or interesting case until the last session of an Elder Class.  This semester I asked the students to read:

The combo seemed to work well, giving students a chance to revisit a number of issues from the semester.  For, example, we talked about the role of an attorney in advising family members. In the Irving case, did  either the daughter or the son have legal advice (the same lawyer?) regarding the roles they took when their mother was admitted to the nursing home?  If anyone would like my outline of questions for students on these two documents, feel free to email me. 

And if any of you have a great way to end the semester in either Elder Law or Wills, Trusts & Estates, please share! 

November 21, 2013 in Ethical Issues, Health Care/Long Term Care, Medicaid, State Cases | Permalink | Comments (1) | TrackBack (0)

Sunday, November 17, 2013

Tackling the Medicaid Planning "Ethics" Issue Head-On

I expect this topic will generate considerable discussion. 

John B. Payne, long-time practitioner in Michigan and Pennsylvania, addresses a fundamental issue for those working in the law and aging policy arena: whether so-called "Medicaid Planning" is somehow wrong.  In doing so, he considers several important perspectives.  John starts by identifying six different "constituencies" who are "involved in or affected by planning steps," including legislators, public welfare administrators, nursing home operators, lawyers, judges, and commentators.  The article, "Ethical and Public Policy Considerations Related to Medicaid Planning," is the lead in the October 2013 issue of the Pennsylvania Bar Quarterly.  The abstract provides:

"This paper discusses moral, ethical, and public-policy issues regarding Medicaid planning -- transferring or converting assets of a long-term care consumer to create Medicaid eligibility.  The author argues that it is not unethical to qualify a nursing-home resident for Medicaid by means of asset transfers where the resident will receive the same service under Medicaid as he or she would receive as a private-pay patient.  The author further contends that an applicant's lawyer would have an ethical and moral obligation to the client and the client’s family to maximize Medicaid payments for nursing care where it is clear that the client would want Medicaid to cover the cost of care.  Finally, the author urges that the state’s or commonwealth’s fiscal concerns should not be given priority by a court above a Medicaid candidate’s legitimate desire to preserve his or her wealth in the face of ruinously expensive nursing home costs." 


November 17, 2013 in Ethical Issues, Health Care/Long Term Care, Medicaid | Permalink | Comments (0) | TrackBack (0)

Friday, November 15, 2013

Auditor General Details Mismangement of Home Care Worker Payroll Providers in PA

Think of state-subsidized home care as a form of "outsourcing" -- or at least that is how one state's top investigator reportedly described state payments for home care -- while citing serious concerns from a special audit for the funding system.

Pennsylvania's Auditor General released a Report on November 14 detailing "long-term mismangement" by the state's Department of Public Welfare of home care worker payroll providers, causing financial and emotional strain for care recipients and workers, while also "unnecessarily costing taxpayers millions in Medicaid dollars per year."  A press release explained:

“Thousands of people who provide services that help the elderly, and children and adults with disabilities, stay in their home — out of institutional care — went for weeks and months without a paycheck because DPW failed to provide adequate oversight and demand accountability of contracted payroll providers,” DePasquale said about the problematic transition in January from 36 payroll providers to Public Partnerships Limited LLC (Public Partnerships Limited), of Boston, Mass.


“Our audit found that problems with the transition caused so much fear and confusion that at least 1,500  people receiving home care services switched to a more expensive model of care that is unnecessarily costing at least $7 million more per year.”

The special performance audit opened in February 2013, triggered by "calls and complaints from home care participants and their direct care workers across the state."

According to PennLive news, the Public Welfare Secretary who took office this year believes many of the problems have already been fixed and the current system is working better.  

November 15, 2013 in Health Care/Long Term Care, Medicaid | Permalink | Comments (0) | TrackBack (0)

Thursday, November 14, 2013

Nursing Home Contracts Revisited: The Nutmeg State Adds Spice

Nursing homes, contracts, agents and payment demands.  I'm seeing interesting cases and laws coming out of Connecticut.  The topic is whether (and when) liability arises for an individual, often a son or daughter, who admits a parent to a nursing home, if a gap arises in payment for that parent's care.  Here are a few highlights from the Nutmeg State:

  • In early 2013, the Supreme Court of Connecticut upheld a judgment in favor of a defendant/daughter, who was sued for breach of contract by her father's nursing  home. The judgment included attorneys' fees for daughter under a state law governing the rights of successful consumers in disputes with commercial parties.  The daughter had signed documents at the time of her father's admission, as a condition of admission.  The nursing home's contract attempted to establish contractual obligation for the signer as a responsible party "if the responsible party has control or access to the patient/resident's income and/or assets, including but not limited to making prompt payment for care and services...." Under the court's ruling, however, this clause did not bind the daughter to pay for her father's care, as she was neither an appointed agent under a power of attorney, nor a court-appointed guardian. Aaron Manor, Inc. v. Irving, 57 A.3d 342 (Conn. 2013). 
  • Digging deeper into the Aaron Manor case, I looked to see why there was a payment gap. What wasn't clear from the Aaron Manor decision by the Connecticut Supreme Court, was the potential importance of the role played by another adult, the father's son.  As reported in greater detail at the intermediate appellate level, the son (and thus also brother to the daughter/defendant discussed above) did have a power of attorney and control over the father's accounts, had not signed the admissions contract, and had made transfers (including gifts) to himself and his sister from those accounts. Eligibility for Medicaid was not discussed in the intermediate court's case history. My best guess is the son declined to pay the nursing home bills for dad (and the history suggests a gap of a couple of months may have been connected to terms of some private insurance, so perhaps there was a separate insurance coverage dispute), but the son wasn't sued because he hadn't signed that nursing home contract.  Connecticut has a filial support law, by the way, but it is not comparable to Pennsylvania's filial law. Aaron Manor, Inc. v. Irving, 12 A.3d 584 (Conn. App. 2011). 
  • Here is where things get interesting (spicier?) -- at the Legislature.  Effective on October 1, 2013, the Connecticut Legislature amended state law to permit a nursing home to collect a debt for unpaid care for a resident from third parties, if that resident has been denied Medicaid because of one or more transfers by or to those parties, causing ineligibility.  The Connecticut law provides that nursing home collection suits may be filed against the "transferor" or the "transferee." A successful nursing home may also seek attorneys' fees.  Sections 128-130 of Connecticut Public Act 13-234.

It looks like the statutory change is a direct response to the type of facts represented in the Aaron Manor case, and would give nursing homes potent options for the future, as the son was a transferor (and transferee) and the daughter was a transferee.  I have written about liability issues arising out of nursing home contracts, including discussion of an earlier Connecticut case, Sunrise Healthcare Corp. v. Azarigian, 821 A.2d 835 (Conn. App. 2003), a case that was distinguished by the courts in analyzing Aaron Manor. (In fact, the last few years I've spent so much time reading contracts and cases connected to financial responsibility for long-term care, that I finally volunteered to add Contract Law to my teaching package.)  No secret that I find this area to be a fascinating juncture of substantive concepts, requiring analysis of health care policy, family law, contract law, agency law and elder law (which includes, of course, Medicaid law).

How did the Legislative change come about? According to a report by Wiggin & Dana, a Connecticut law firm representing providers, the changes to Connecticut law "grew out of a multiyear effort by LeadingAge Connecticut to convince the General Assembly to address the need to assist nursing homes facing bad debts. . . .  Although the elder law bar and legal services advocates initially opposed the legislation, the Co-Chairs of the General Assembly's Human Services Committee . . . led a successful mediation process resulting in compromise language that received the support of all parties." 

In writing about the new Connecticut Law, ElderLawGuy Jeff Marshall comments that this may be part of a "trend to make perceived 'wrongdoers' . . .  liable for unpaid nursing home costs." Further he predicts such an approach, which is an alternative to liability under filial support laws, could "spread to other states." 

See also the Elder Law Prof Blog's earlier post: "New Hampshire Establishes Liability for Agents Who Fail to File Timely Medicaid Applications."

Feel free to comment below on your views on this potential trend.

November 14, 2013 in Health Care/Long Term Care, Medicaid, State Cases, State Statutes/Regulations | Permalink | Comments (0) | TrackBack (0)

Monday, November 11, 2013

The Generosity of the Elder Law Bar

In my experience, the Elder Law Bar -- those lawyers who work hard to help older adults and family members through the maze of options in deciding how to handle long-term care needs and end-of-life planning -- are also a warm, generous group of professionals to hang out with.  When you need an answer to a tough question on one of your cases, someone always takes that call.  When you need a speaker for a meeting, conference, or classroom, someone always volunteers, and then goes above and beyond, to provide a little something extra in terms of value for the audience.

Another example of the generosity of the bar occurred this semester in my Elder Law class, when a graduate of our law school, Robert C. Gerhard, Esq. stepped forward to teach a class for me when I was called out of town.  The topic was "setting up your own elder law practice," and Bob was full of practical advice, including both encouragement and appropriate warnings.  Bob is one of many great practitioners who have shared experiences with our students.

But Bob went above and beyond, providing each of the students in the class with a copy of the latest edition (2013) of his treatise, Pennsylvania Medicaid: Long-Term Care (Bisel Co.) 

I had a chance to review the book over the weekend.  It is a practical "bonanza," in the sense that it offers both narrative explanations of Medicaid law as practiced in Pennsylvania, and all of the key forms and hard-to-find informal state guidelines about the process.  It is the kind of book that is useful both to the public as a "first step" and fellow practitioners who need reminders about the many next steps.  Chapters 4, 5 and 6 are golden, using clear language to explain "achieving resource eligibility," the application process, and the ever-more challenging "estate recovery" rules. 

I hope all elder law and estate planning professors have alums and colleagues in practice who are both generous AND good writers.  Thanks, Bob!   

November 11, 2013 in Books, Legal Practice/Practice Management, Medicaid | Permalink | Comments (0) | TrackBack (0)

Thursday, November 7, 2013

New Hampshire Law Establishes Liability for Agents Who Fail to File Timely Medicaid Applications

Effective this year, a new law enacted in New Hampshire declares that under certain circumstances a "fiduciary who possesses or controls the income or assets of a resident and has the authority and duty to file an application for Medicaid. . . shall be liable . . . to the long-term care facility for all costs of care which are not covered by Medicaid due to the fiduciary's negligence in failing to promptly and fully complete and pursue an application for Medicaid benefits for the resident." 

A bit of practical background is appropriate to appreciate the significance of this new law. 

Older individuals entering a nursing home have essentially three options for how to pay the bills at a facility: Medicare, Medicaid or Private Pay (and by private pay, I'm including the possibility of making a claim under long-term care insurance, family contributions or the resident or couple's  income and savings). 

For older individuals going directly from a hospital into skilled care or rehabilitative care, Medicare is often the first payment source, for up to 100 days per spell of illness.  On a comparative basis, Medicare is relatively easy to negotiate, as the facility usually handles the initial paperwork. 

It gets trickier, however, if long-term care is contemplated and Medicaid could be a possibility.  Medicaid-eligible facilities prefer the higher pay rates associated with private pay, and therefore may not be highly motivated to talk with residents or families about Medicaid, unless it is the only option.  But they often ask family members to pay and thus the burden of figuring out how to pay is on the family.  Sometimes that family member is the out-of-town son or daughter.  Sometimes that family member is a frail spouse.

As I have discussed in prior scholarship, gaps in payment sources can occur for a variety of reasons.  The resident is rarely the cause of the gap as usually the frailty or illness of residents is the reason they are in a care facility to begin with.  Rather, some third-party -- or the facility itself --will usually have to handle the paperwork  associated with Medicaid applications. And Medicaid applications, typically requiring collection and analysis of the previous five years of the applicant's financial records, can be challenging.

So, who are these fiduciaries facing potential liability?  The New Hampshire law says a "fiduciary" is a "person to whom power or property has been formally entrusted for the benefit of another such as an attorney-in-fact, legal guardian, trustee, or representative payee." 

There are additional conditions and qualifications in the statute affecting the potential liability of the agent or other fiduciary.  ElderLawGuy Jeff Marshall on his Blog has a thoughtful analysis of implications of the new law.

My starting question:  So, what about the family member who is named as an agent under a power of attorney, has never taken action under the POA, and for whatever reason (tiredness, lack of understanding, perhaps being overwhelmed by work or other family responsibilities) does not step forward to handle the Medicaid application process.  Is having the "authority" to serve as an agent enough  -- under this statute -- to trigger a corresponding duty?  

By the way, as I discussed in an August post, New Hampshire recently repealled its filial support laws.  I am now wondering if there was some horse-trading in the halls of the N.H. legislature whereby nursing home lobbyists agreed to the repeal of filial support laws in exchange for what I might call "fiduciary support" liability?  Anyone with insights into the history of this new law?

Feel free to "comment" below.

November 7, 2013 in Elder Abuse/Guardianship/Conservatorship, Health Care/Long Term Care, Medicaid, Medicare | Permalink | Comments (0) | TrackBack (0)