Idaho Dept. of Health and Welfare v. Jackman
| Decision Date | 02 November 1998 |
| Docket Number | No. 23928,23928 |
| Citation | 970 P.2d 6,132 Idaho 213 |
| Parties | In the Matter of the Estate of Lionel Malcolm Knudson, Deceased. IDAHO DEPARTMENT OF HEALTH AND WELFARE, Petitioner-Appellant, v. Barbara JACKMAN, Personal Representative for the Estate of Lionel Malcolm Knudson, Respondent. Lewiston, April 1998 Term |
| Court | Idaho Supreme Court |
Hon. Alan G. Lance, Attorney General; W. Corey Cartwright, Deputy Attorney General, Boise, for Appellant. W. Corey Cartwright argued.
William C. Kirsch, Moscow, for Respondent.
This is a Medicaid recovery case. We conclude that section 56-218(1) of the Idaho Code (I.C.), as it existed at times applicable to this case, authorized the Idaho Department of Health and Welfare (the Department) to recover from the available estate of a surviving spouse the balance of Medicaid payments received by an individual who was fifty-five years old or older when receiving the payments if the individual's estate is inadequate to repay the entire amount. We conclude, however, that federal law applicable to this case prohibited this recovery, except from any community property the spouses may have accumulated after a marriage settlement agreement transmuting their community property into separate property of each. We remand for further proceedings consistent with this opinion.
Barbara Jackman (Jackman) was the niece of an elderly couple, Hildor and Lionel Knudson (the Knudsons). Jackman was also Hildor's guardian and held a durable power of attorney for Lionel. On behalf of the Knudsons, Jackman signed a "Marriage Settlement Agreement" (the agreement) on March 8, 1993. The agreement transmuted most of the Knudsons' community property into Lionel's separate property. By the agreement, Hildor received as her separate property her personal property and household effects in her possession, her irrevocable burial trust, and $1,900 in cash. The purpose of the agreement was to make Hildor eligible for Medicaid assistance. Hildor received $41,600.55 in Medicaid payments (the Medicaid payments) prior to her death on October 27, 1994.
After Hildor's death, Jackman collected Hildor's estate pursuant to the procedures for small estates contained in I.C. § 15-3-1201. After paying Hildor's funeral expenses and legal fees, Jackman delivered the balance of Hildor's estate, $1,638.03, to the Department on August 10, 1995. The Department accepted this as a partial settlement of its claim for recovery of the Medicaid payments.
Lionel died two weeks after Hildor on November 11, 1994. After Lionel's death, Jackman initiated probate proceedings for his estate and became Lionel's personal representative. Lionel's estate was valued at $40,798.35. The Department sought allowance of a claim against Lionel's estate to recover the remaining balance of the Medicaid payments (the balance of the Medicaid The magistrate judge denied the Department's claim against Lionel's estate because Hildor had an estate, and the Department received the remainder of the estate after expenses. The Department appealed to the district judge, who affirmed the magistrate judge's decision. The Department appealed.
payments). Jackman objected to the Department's claim.
I.C. § 56-218 AUTHORIZED RECOVERY OF THE BALANCE OF THE MEDICAID PAYMENTS FROM LIONEL'S ESTATE.
The Department asserts that I.C. § 56-218, as it existed at times applicable to this case, authorized recovery of the balance of the Medicaid payments from Lionel's estate. We agree.
I.C. § 56-218 provides that medical assistance "paid on behalf of an individual who was fiftyfive (55) years of age or older when the individual received such assistance may be recovered from the estate, or if there be no estate the estate of the surviving spouse, if any, shall be charged for such aid paid to either or both...." I.C. § 56-218(1).
In George W. Watkins Family v. Messenger, 118 Idaho 537, 797 P.2d 1385 (1990), the Court pointed out: "The plain meaning of a statute will prevail unless clearly expressed legislative intent is contrary or unless plain meaning leads to absurd results." Id. at 540, 797 P.2d at 1388.
If we were to read I.C. § 56-218(1) not to allow recovery from Lionel's estate of the balance of the Medicaid payments because there was $1,638.03 in Hildor's estate, our reading would be contrary to expressed legislative intent and would lead to "absurd results." Id. This reading would mean that if the estate of a spouse who received Medicaid assistance had even one cent, or a toothbrush, the Department could collect nothing from the estate of the surviving spouse. As acknowledged by Jackman's attorney at the oral argument of this case, this reading of the statute would mean that there is no circumstance in which the legislative intent to recover from the estate of a surviving spouse would be fulfilled. This result is contrary to the expressed legislative intent that the Department recover from the estate of the surviving spouse under some circumstances. The statute should not be read as preventing recovery from the surviving spouse's estate even if the recipient's estate is inadequate for the full recovery of Medicaid payments.
From this analysis we conclude that the correct reading of I.C. § 56-218(1) is that if the estate of the individual who received Medicaid assistance is inadequate to repay the full amount of the assistance received, the Department can recover the balance from the estate of the surviving spouse. Stated in terms of the circumstances of this case, when the Department received the balance of Hildor's estate, there was "no estate" of Hildor remaining from which the Department could recover the balance of the Medicaid payments.
FEDERAL LAW PREEMPTS THE AUTHORITY GRANTED TO THE DEPARTMENT BY I.C. § 56-218 TO RECOVER FROM LIONEL'S ESTATE, EXCEPT FROM ANY COMMUNITY PROPERTY OF LIONEL AND HILDOR.
Jackman asserts that federal law applicable to this case does not permit recovery from Lionel's estate. We agree, except to the extent of any community property Lionel and Hildor accumulated after the agreement.
The pertinent portions of 42 U.S.C. § 1396p(b)(1)(B) and (4), as enacted in 1993, provide, as follows:
(b) Adjustment or recovery of medical assistance correctly paid under a State plan
(1) No adjustment or recovery of any medical assistance correctly paid on behalf of an individual under the State plan may be made, except that the State shall seek adjustment or recovery of any medical assistance correctly paid on behalf of an individual ...
under the State plan in the case of the following individuals:
(B) In the case of an individual who was 55 years of age or older when the individual received such medical assistance, the State shall seek adjustment or recovery from the individual's estate, but only for medical assistance consisting of--
(I) nursing facility services, ....
(4) For purposes of this subsection, the term "estate", with respect to a deceased individual--
This amended statute applied to Medicaid payments for calendar quarters beginning on...
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