Farmer v. Dalton

No. 93-5183 (W.D. Ark. filed Jan. 19, 1994) ; Clearinghouse Number: 49693

Description

Class Action Challenges Inclusion of VA UME Reimbursements as Income for Medicaid Share-of-Cost Liability

Abstract

Plaintiffs have filed this class action challenging the Arkansas Department of Human Services (DHS)'s practice of counting VA reimbursement for unusual medical expenses (UMEs) as income in calculating Medicaid share-of-cost liability. Named plaintiff is an elderly individual with a disability who resides in a nursing home. He receives benefits under the VA Improved Pension Program, which includes an allowance for his wife, and Medicaid, which pays for his medical expenses and institutionalization. Under Medicaid, he and his wife are required to make a contribution--"share-of-cost"--from their income to the cost of care covered by the program. Under their pension plan, the VA reimburses plaintiffs for UMEs paid from plaintiffs' own pockets. Plaintiffs claim that DHS counts this reimbursement as income when computing their Medicaid share-of-cost liability, in violation of the Medicaid laws. DHS filed a motion to dismiss on the basis of plaintiffs' failure (1) to join the Secretary of HHS as a necessary party and (2) to state a claim upon which relief can be granted. The district court denied the motion and gave DHS leave to file a third-party complaint against HHS. Plaintiffs' motions for a preliminary injunction and class certification are pending.

Additional Information

Attorney Information
Plaintiffs represented by Susan Purtle, Mona Teague, Darla Newman, Ozark Legal Services, 26 E. Center St., Fayetteville, AR 72701, (501) 442-0600.
Docket Date
1994-01-19 00:00:00+00:00

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