NAELA Foundation Awards Grants to Minnesota NAELA

In April 2020, the NAELA Foundation awarded a grant to Minnesota NAELA to pursue litigation on the failure of the Minnesota Department of Human Services (DHS) to publish administrative decisions under Fair Hearings.

July 2020 Update: Minnesota NAELA polled its membership and found that, after its notice to DHS, cases were now available online for both good and bad decisions; as a result, no further action was taken.

In April 2020, the NAELA Foundation awarded a grant to Minnesota NAELA for their position that Minnesota must comply with federal spousal impoverishment rules by deeming spousal resources when determining eligibility for long-term care Medicaid. They sought an order that prevents the Minnesota DHS from continuing to act in disregard of federal law based on nothing more than an anonymous memo.

Background: Because respondent Esther Schmalz sought long-term-care medical assistance, Renville County Human Services assessed her assets and those of her husband, Marvin Schmalz. As part of the assessment of Marvin’s assets, Renville County Human Services included Marvin’s portion of several non-homestead life estate interests that he and Esther owned. Esther appealed the inclusion of the life estate interests in the assessment of Marvin’s assets, arguing that the life estates should not be included in the total amount of assets that Marvin may retain. The Commissioner adopted the recommendation of the human services judge, which concluded that Renville County Human Services properly denied Esther’s application for medical assistance based on the inclusion of the life estate assets owned by Marvin.

Esther appealed to the district court. The district court agreed with Esther that the non-homestead life estates should not be included in Marvin’s assets, holding that the term “individual” in Minn. Stat. § 256B.056, subd. 4a (2018), included Marvin. The Commissioner appealed, and the court of appeals affirmed the district court order.

Outcome: On June 24, 2020, the Supreme Court reversed the decision of the court of appeals. Click here for the full decision.