Guardian Must Repay Medicaid Overpayment

Charles Maloy moved into a nursing home and began receiving Medicaid benefits. Mr. Maloy’s son, Charles Maloy II, was appointed his guardian. As guardian, Charles transferred half of his father’s property to himself and took out two mortgages. When the state discovered these transactions, it determined that it had overpaid Mr. Maloy and that he was no longer eligible for benefits.

Mr. Maloy died before the state could go after its money, so the state requested that Charles repay the money. Charles claimed that the state should go after his father’s estate instead, but the Pennsylvania Commonwealth Court disagreed. The Court held that “not only is the collection of repayment from Charles II expressly authorized, but it seems entirely appropriate, given that it was his actions that led to the overpayment.”

Son is Responsible for Medicaid Overpayment to His Father, ElderLawAnswers, July 6, 2010 (quoting Maloy v. Dep’t of Pub. Welfare, No. 1575 (Pa. Commw. Ct. filed March 23, 2010)).