MHL ARTICLE 81 - New York State Unified Court System

d
Matter of Patrick “BB”, 267 A.D.2d 853; 700 N.Y.S.2d 301 (3 Dept., 1999)
Question whether IP’s inheritance was available resource for purposes of Medicaid eligibility, was
rendered moot where State relinquished its claim and did not object to the funding of SNT.
Matter of Steven S., Sup. Ct., Kings Cty., 6/19/00, (Scholnick, J.)(NOR) (not an Art. 81 case)
Medicaid lien accruing after death of ward’s father but prior to distribution of inheritance to ward
cannot be satisfied before creation of SNT because funds did not belong to ward when Medicaid lien
was created, they were just an expectancy but not vested and not under his control or his
representatives control when lien accrued.
Matter of William S., Index No. 1999-002249, (Sup. Ct. Broome Cty., 1/28/00
NOR)(Thomas, J.), NOR
OMRDD petitioned for the appointment of guardian of the person and property for profoundly
retarded man who became the beneficiary of his deceased father’s IBM tax-deferred savings plan.
OMRDD wanted guardian to control that fund and turn it entirely over to the state as compensation
for past care, arguing that it became an “available resource” as soon as the father died in 1997 and
Medicaid had therefore been incorrectly paid for the care of William S. The court followed the
MHLS argument and cited as controlling precedent, Matter of Little, 256 A.D.2d 1152 for the
proposition that for the purpose of determining Medicaid eligibility, a resource is not available until
it is actually distributed to and in the control of the Medicaid recipient. The court then granted
MHLS partial summary judgment, dismissing OMRDD’s claim of incorrectly paid Medicaid and
then ordering the inheritance placed in a supplemental needs trust upon the determination, following
an evidentiary hearing, that William S. requires a special guardian.
(iii) Income and benefits
Matter of Ruben N., 55 A.D.3d 257; 863 N.Y.S. 2d 789 (1st Dept., 2008), recalled and
nd
vacated at 71 A.D.3d 897; 898 N.Y.S.2d 459 (2 Dept 2010)
A young man with a congenital birth disorder who had been correctly paid Medicaid for his care in
his early years was injured, at the age of 28, as a result of medical malpractice and compensated by
the third party for the injury. The settlement, minus satisfaction of the State’s Medicaid lien, was
placed into a payback SNT for his benefit. The amount of Medicaid recoupment paid to the State
before funding the trust represented only the amount of Medicaid paid after the injury caused by
malpractice of the third party. The young man died approximately one year after the SNT was
funded. After his death, the State filed a claim with the trustee pursuant to the payback provision
of the trust to satisfy the balance of the lien it claimed for all the Medicaid paid to the young man
through his entire lifetime as a result of his congenital disability and not the recent injury that
resulted in the settlement funds in the SNT. The Appellate Division held that the State was not
entitled to re-coup the full amount paid to the young man over his lifetime. The Court reasoned that
73