State Properly Counted Late Husband's Assets as Resource Because Medicaid Application Filed Before He Died

A U.S. district court in New Jersey denies a Medicaid applicant a preliminary injunction for the second time, holding that the state properly counted her late husband's assets as an available resource because her husband was still living at the time of her Medicaid application. Flade v. Connolly (U.S. Dist. Ct., D.N.J., No. 16-4407, Dec. 23, 2016).

Shortly after nursing home resident Eileen Flade applied for Medicaid, her husband passed away, leaving $70,000 in assets. In his will, he left Ms. Flade the smallest share allowed under state law, but Ms. Flade did not claim her one-third elective share. The state denied Ms. Flade's application because it found that all of Mr. Flade's assets were available to Ms. Flade. Ms. Flade filed a second Medicaid application that was still pending.

Ms. Flade sued the state in federal court under 42 U.S.C. § 1983 and filed a motion for a preliminary injunction to prevent the state from treating the assets of her late husband's estate as a resource that she had access to. The district court denied the motion, holding that even if Ms. Flade doesn't have access to her husband's assets, she made transfers that would subject her to a penalty period. The district court denied the preliminary injunction. Ms. Flade filed a second motion for preliminary injunction, alleging additional facts.

The U.S. District Court for the District of New Jersey denies the preliminary injunction. According to the court, at the time of Ms. Flade's first application, her husband was still living, so his assets were properly counted as an available resource. The court notes that her husband's passing could change how the assets are treated in the second application, but the second application is not a part of this case. The court also determines that it is not in the public interest to grant Ms. Flade a preliminary injunction because she has not "in good faith pursued all avenues of relief available to her" by not claiming the elective share and not appealing the denial of the first Medicaid application.

For the full text of this decision, go to: https://cases.justia.com/federal/district-courts/new-jersey/njdce/3:2016cv04407/335576/18/0.pdf?ts=1482574895

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