Medicaid Ineligibility Period Recalculated When Transferred Assets Returned.

The plaintiff, a nursing home resident, transferred assets before applying for Medicaid benefits.  The Medicaid agency calculated a penalty period running from November 2007 through September 2011.  Subsequently, a part of the transferred assets came back to the plaintiff and the state Medicaid agency counted the value of the returned assets as excess resources and recalculated the penalty period as now running from July 2009 through April of 2013.  The plaintiff argued that the original start date for the penalty period should remain in force, even though state regulations said that the penalty period is to be recalculated when transferred assets are returned and runs until those assets are spent down to the required minimum.  The court upheld the regulations, noting that federal law was silent on the issue.  Aplin v. McCrossen, No. 12-CIV-6312-FPG, 2014 U.S. Dist. LEXIS 119682 (W.D. N.Y. Aug. 25, 2014).

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