COURT REVISES MASSHEALTH REGULATIONS ON INVESTED ASSETS

A recent Massachusetts Superior Court decision ( Grant v. Office of Medicaid, Superior Court Civil Action No. 05-1884-D) favorably revises MassHealth regulations to permit some spouses of nursing home residents to keep more assets.

In the Grant case, four MassHealth recipients and their spouses challenged the interest rate the Office of Medicaid uses, according to the regulations (see MassHealth Regulation 130 CMR 500.017(C)) , to actually determine how much savings they may keep to generate necessary income. They argued that the regulations required the couples to contribute to the cost of long-term nursing home care more than what is "available" to them.

This favorable Superior Court decision grants plaintiffs the right to use their actual rate of return instead of the deemed interest rate applicable to five-year certificates of deposit. The Court found the rates used by the Office of Medicaid were unrealistically high and not based on actual interest income available to elderly couples, and therefore contrary to law. This change can be a significant benefit to lower income spouses of nursing home residents.

--Adapted from Recent Superior Court Decision Significantly Revises MassHealth Regulations Regarding Five-Year CD Rates , News from Margolis & Associates, e-mail bulletin, May 21, 2007.

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