Medicaid: Penalty Reversed Where Home Given to Caregiver Child

Penalty Reversed Where Home was Given to Caregiver Child. In 2002, Petitioner’s daughter moved into Petitioner’s home to provide care. In 2003, Petitioner was bedridden after back surgery; the daughter continued providing care on a full-time basis and also paid some of Petitioner’s expenses. On December 25, 2004, Petitioner gave her home to her daughter, making notes regarding the gift in a notebook. On April 10, 2006, a deed was prepared and Petitioner conveyed the property to her daughter. On July 28, 2006, Petitioner moved into a nursing home and filed a Medicaid application. Initially the application was approved, but on review in October 2007, a transfer penalty was imposed. Apparently, when a Medicaid application was filed, DFCS (wrongly) believed the Caregiver Child Exception to the transfer penalty rule was changed and imposed a penalty. Accordingly, a forty-one month penalty was assessed beginning January 2008. Prior to the fair hearing a deed of correction was filed changing the date of the transfer to December 25, 2004. At the fair hearing, the ALJ found the daughter’s testimony credible that the property was transferred for care provided to Petitioner and that the property was conveyed as of December 25, 2004. “Not only did Petitioner present written notations that she gave her daughter the property as a Christmas gift in 2004, the Deed of Correction is a legal document prepared by an attorney indicating that this was the date of the transfer.” Further, the daughter possessed the property. Citing O.C.G.A. § 23-2-132; Sharp v. Sumner, 272 Ga. 338 (2000); and Milton v. Milton, 192 Ga. 778 (1941). The ALJ found that the transfer occurred prior to DRA’s effective date and, therefore, the old policy permitting the transfer remained in effect. Although the result was correct, proper application of the Caregiver Child Exception would have made this decision simpler.

OSAH-Spalding-Walker-3-2008.pdf (March 28, 2008).