Medicaid Must Be Read From the Public Benefit's Point of View and Not as a Trusts and Estates Lawyer

Prior blogs have discussed the seminal case of Mistrick v. Division of Medical Assistance and Health Services 154 NJ 158 (1998). In Mistrick, the New Jersey Supreme Court held that an IRA of a spouse is not considered a resource.

Literally, the New Jersey Supreme Court was incorrect. The reason is that the rules of social security are incorporated in the Medicaid rules by reference. Under the social security rules, an IRA of a recipient is a resource. Since such rules are incorporated in the Medicaid rules, an IRA of a community spouse should be a resource for Medicaid purposes.

Notwithstanding, the Mistrick case held that the IRA of a spouse must be considered. Although this whole thing is literally wrong, New Jersey does not want to allow the community spouse to receive a large retirement payment which is rolled over to an IRA and still receive Medicaid.

Once again, the area of Medicaid is still filled with minefields and you must interpret the law from a public benefit's point of view.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.

© March 2012, Post 190