L.M. v. New Jersey Div. of Medical Assistance & Health Servs.

659 A.2d 450 (N.J. 1995) ; Clearinghouse Number: 50719

Description

Pension Benefits Awarded to Medicaid Applicant’s Former Wife Are Not Income Available to Him

Abstract

The New Jersey Supreme Court has held that plaintiff’s pension is owned by his former spouse and should not be considered as income for purposes of determining his eligibility for Medicaid. Plaintiff, a 75-year-old man, had required nursing home care since he suffered a stroke in 1992. His initial application for Medicaid was denied because his monthly income, which included social security and pension benefits, exceeded the eligibility limit. Thereafter, plaintiff’s wife, to whom he had been married for over 60 years, filed a complaint for divorce from bed and board. The divorce judgment provided that plaintiff’s wife was to receive all of his interest in his pension plan. Plaintiff again applied for Medicaid, and this second application was again denied because of excess income. Finding that plaintiff’s pension was available to him, even though it was being paid to his former spouse pursuant to a qualified domestic relations order, the appellate court upheld the denial. The court noted that to hold otherwise would encourage parties to secure divorces in order to establish Medicaid eligibility. On appeal, the supreme court held that, pursuant to equitable division of marital assets, plaintiff’s former spouse owned his pension, and therefore those pension benefits could not be considered income available to him for Medicaid purposes. Although the court articulated its concern that its holding might encourage couples to divorce to protect assets for the spouse of a nursing home resident, it noted that recent modifications to the Medicaid eligibility requirements, including provisions authorizing the use of Miller trusts and the governor of New Jersey’s recommendation authorizing coverage for nursing home care through the state’s medically needy program, should make it unnecessary for families to resort to such extremes.

Additional Information

Attorney Information
Amicus curiae represented by Leighton Holness, Legal Services of New Jersey, 100 Metroplex Dr. at Plainfield Ave., Suite 402, Edison, NJ 08818-1357, (908) 572-9100; Kathryn Brock.
Docket Date
1995-06-07 00:00:00+00:00