N.Y. Court Rules State May Force Spouse to Purchase Annuity

After applying for Medicaid benefits in 2004, nursing home resident Dominick Giaquinto sued the Montgomery County Department of Social Services (DDS) after it required Giaquinto’s wife to bring her income up to the minimum monthly maintenance needs allowance by purchasing an immediate annuity. Giaquinto argued that this request was capricious and violated federal Medicaid law.

The trial court found for Giaquinto, and the DDS appealed. The Appellate court upheld the lower court’s ruling on its merits but reversed the award of attorney’s fees. The court found that Giaquinto had received retrospective relief under 42 USC Section 1983 and was not eligible for attorney’s fees. Giaquinto appealed.

The New York Court of Appeals determined that Giaquinto sought prospective relief and was not barred by the 11^th Amendment. The court remanded the case to determine whether Giaquinto prevailed on the merits of the federal claim.

In Giaquinto v. Commissioner of New York State Department of Health (N.Y. App. Div., Jan. 26, 2012), the New York Supreme Court, Appellate Division, held that federal law did not prevent DDS from relying on the annuity method. The court found that Giaquinto’s federal claim failed and that he was not entitled to attorney’s fees.

See N.Y. Court Denies Fees in Medicaid Case, Ruling States May Force Spouses to Purchase Annuities, ElderLawAnswers, Jan. 31, 2012.