New York Court Denies Medicaid Penalty

In Whittier Health Service Inc. v. Pospesel, the state of New York tried to assess a penalty against a Medicaid recipient that sold their home for far less than its’ assessed value. However, the nursing home provider for the recipient challenged the penalty by arguing that the sale was proper and not being done to artificially lower the patient net worth. The court agreed with the nursing home and ruled that the transaction did not fall foul of Medicaid rules prohibiting hiding of assets. The fact that the home was sold in an arms length transaction, along with the poor state of repair, convinced the court that the sale price was a fair assessment of the properties true value the other assessment notwithstanding.

See, No Penalty Period for Medicaid Applicant Who Sold House for Far Less Than Tax Assessment Value, Elder Law Answers, November 28, 2015.