Ronald Morton's Elder Law Blog

Medicaid will Stop Provider Payments

In a letter to Medicaid providers, such as nursing homes, dated June 19, 2009, the Division of Medicaid announced that, due to the state's budget crisis, it was out of money and would cease all provider payments until it received funding.  The letter points to a $39 million shortfall in current budgeting.  Once providers notify Medicaid recipients that their coverage has been discontinued, I presume the plan is for public outcry to place pressure on the legislature to find a method to fund the program - presumably using the hospital tax that the governor wants, since the Division of Medicaid falls under the executive branch and no doubt sent the letter at his direction.

Make the Children Pay?

One writer recently speculated that states could begin looking to children to pay for the Nursing Home and other medical expenses incurred by their parents and paid by Medicaid.  Article here.  Specifically, the suggestion is that Miss. Code Ann. Sec. 43-31-25 be used to require reimbursement from children for the nursing home or other Medicaid expenses of the parent.  While such a cost recovery scheme may be tempting to cash strapped Mississippi, it would also be illegal.  Federal Medicaid law prohibits states from seeking reimbursement from children for Medicaid expenditures.  The law requires the state, however, to seek recovery of those expenses from the estate of the Medicaid beneficiary.  This is known as "Estate Recovery."  So, parents receiving Medicaid benefits who wish to pass down some legacy to their children must do some pre-planning if they wish to protect some of their assets from forfeiture to Medicaid.  If you have questions about how estate recovery can effect your family, feel free to email me or schedule an appointment. 

Medicaid on Twitter?

The Communications office at the Mississippi Division of Medicaid is apparently on Twitter.  @Medicaid_Truth.  Posts seem to be somewhat political in nature, although I applaud the agency's attempt to use new technology to communicate.  Technology leadership has not been my experience with my usual dealings with Medicaid.  Thanks to www.mississippidemocrats.org for the story. 

Joint Tenancy in Estate Property

Occasionally the issue of joint tenancy arises in an estate, usually in the context of bank accounts.  The common fact pattern is as follows:  Parent names one child as joint owner on his/her checking account for convenience, so that the child can assist with paying bills for the parent.  The Parent has language in his/her will distributing all assets of the estate equally among the children.  When the parent dies, the child named on the bank account takes the position that the bank account is solely  his property by virtue of surviving. 

While there is some case law to support the argument that individuals named on an account solely for the convenience of the owner do not become the property of the survivor, most of the case law in Mississippi suggests that the survivor becomes the sole owner of the property.  This may even be true where the property is specifically identified in the will as being divided equally.  The reasoning is that the will only controls estate property and property that is held as joint tenancy with rights of survivorship never becomes part of the probate estate if there is a survivor.  One of the key factors to look at is whether the property is actually held as JTWROS, or is simply held "jointly", which may be interpreted as "tenancy in common."  In case of the latter, half, or possibly more, of the assets in the account likely belong to the estate and not to the survivor.  Such events are a far too frequent occurance and can be avoided by simply coordinating the terms of the will with actual title to the property.