Supreme Court Says Deceased Employee's Ex-Wife Can Get His Pension Benefits
A new Supreme Court decision has just added another reason to make sure the beneficiary designations on your...
Read moreOn the morning of December 3, 2001, the U.S. Supreme Court heard arguments in its first elder law case. Wisconsin Dep't of Health & Family Servs v. Blumer, No. 00-952. The case is an important one for the husbands and wives of people in nursing homes who are seeking to obtain Medicaid coverage of their nursing home stays. In a nutshell, the outcome of the case will decide whether the spouse who is not in the nursing home'”the 'community spouse''”will be allowed to keep more money to raise his or her standard of living.
Background of the Case
In general, the community spouse of a couple qualifying for Medicaid may keep one half of the couple''s total "countable" resources up to a maximum of $89,280 (in 2002). But in many cases, the community spouse has very little income to live on because most of the couple's income is in the name of the institutionalized spouse. To protect against the community spouse becoming impoverished in such cases, Congress established a minimum income level for community spouses, called the minimum monthly maintenance needs allowance (MMMNA). If a community spouse's income is below her MMMNA, the shortfall can be made up in one of two ways: by transferring income from the institutionalized spouse (called the 'income-first' approach) or by allowing the community spouse to keep resources above the $89,280 level, so that that the additional funds can be invested to generate more income (the 'resource-first' approach). Some states strictly follow the income-first approach, while others allow the resource-first approach, and courts have been divided on which approach federal Medicaid law actually calls for.
Why Does It Matter?
The stakes are actually quite high for some community spouses. If the income-first approach is used, the community spouse is relying on income from the institutionalized spouse to live on. If the institutionalized spouse dies, the community spouse suddenly loses that income and as a result may quickly fall into poverty. If the resource-first approach is employed, the community spouse has enough investment income to maintain her standard of living even if the institutionalized spouse passes away.
The Court Hears the Case
In the case before the U.S. Supreme Court, a Wisconsin court ruled that the state's use of the income-first rule to bring the community spouse's income up to the MMMNA violates federal Medicaid law. The plaintiff in the case, Irene Blumer, was admitted to a nursing home in 1994 and applied for Medicaid in 1996. Mrs. Blumer's local Medicaid agency denied her application because it said that she and her husband, Burnett, had too much money. But Mr. Blumer's monthly income was below his MMMNA. Mrs. Blumer appealed, arguing that because her husband's resources did not generate enough income to meet his MMMNA, he should be allowed to keep more resources. A lower court said that Mr. Blumer should not be permitted to keep more resources, but that Mrs. Blumer should give some of her income to her husband instead. But the Wisconsin Court of Appeals reversed the lower court, ruling that the federal statute does not allow states to use the income-first rule. Thus, the court said, Mr. Blumer should be permitted to raise his income by keeping more resources.
When the U.S. Supreme Court heard the case on December 3, the back-and-forth between the Justices and the attorneys representing the parties suggested that the Court was agreeing with the Wisconsin Appeals Court that federal Medicaid law requires the use of the resource-first rule. But anything can happen and we will have to await the Court's final decision, which will come some time in 2002.
For more on increasing the community spouse's resources, click here.
Local Elder Law Attorneys in Your City
A new Supreme Court decision has just added another reason to make sure the beneficiary designations on your...
Read moreIn upholding the President Obama's health reform law, the Supreme Court ensured the preservation and continued roll-out of im...
Read moreReversing an appeals court, the Illinois Supreme Court has ruled that trust beneficiaries who married outside the Jewish fait...
Read moreThe Social Security Administration (SSA) and the Veteran's Administration (VA) have begun to issue guidance governing the tre...
Read moreIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MOREIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
READ MORELearn who qualifies for Medicare, what the program covers, all about Medicare Advantage, and how to supplement Medicare’s coverage.
READ MOREWe explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.
READ MOREFind out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.
READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
READ MOREWe explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.
READ MOREFind out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.
READ MOREGet a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.
READ MORELearn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.
READ MOREExplore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.
READ MOREGet a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.
READ MORELearn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.
READ MOREExplore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.
READ MORE