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COA: agency's claim for Medicaid reimbursement allowed

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The Indiana Court of Appeals has found that a trial court erred in concluding that the Family and Social Services Administration’s preferred claim for reimbursement of Medicaid benefits against an estate was not timely filed.

In State of Indiana ex rel. Family and Social Services Administration v. Estate of Phillip Roy, No. 33A04-1105-ES-246, the FSSA filed a notice of lien in April 2009 against the estate of Phillip Roy after he died in November 2008 for nearly $40,000 in Medicaid expenses incurred by Roy during his lifetime. The estate moved to dismiss the petition. The trial court disallowed the lien because it was invalid and found that FSSA’s claim to recover the benefits was time-barred by Indiana Code 29-1-14-1(d) because it was filed more than nine months after Roy died.

The trial court focused on the part of the statute that says all claims barrable under subsection (a) would be barred if not filed within nine months. But the judge disregarded the language of subsection (a) that says the time limitations apply to all claims filed “other than … claims of the United States, the state, or a subdivision of the state …” The FSSA is a subdivision of the state, the judges found.

Judges James Kirsch and Cale Bradford also rejected the argument by the estate that because an estate wasn’t opened within five months, the estate representatives are prevented from selling Roy’s real estate and using the proceeds or a portion of it to pay FSSA’s claim based on I.C. 29-1-7-15.1(b). The judges remanded with instructions.

Judge Michael Barnes disagreed with his colleagues that subsection 15.1(b) doesn’t preclude the sale of Roy’s real property to pay a debt owed to FSSA.

“To give effect to Subsection 15.1(b), I believe that because FSSA is no longer claiming that it has a valid lien upon Roy’s real property and because his estate was not opened within five months of death, the property cannot be sold to pay FSSA’s claim,” he wrote.

 

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  1. He TIL team,please zap this comment too since it was merely marking a scammer and not reflecting on the story. Thanks, happy Monday, keep up the fine work.

  2. You just need my social security number sent to your Gmail account to process then loan, right? Beware scammers indeed.

  3. The appellate court just said doctors can be sued for reporting child abuse. The most dangerous form of child abuse with the highest mortality rate of any form of child abuse (between 6% and 9% according to the below listed studies). Now doctors will be far less likely to report this form of dangerous child abuse in Indiana. If you want to know what this is, google the names Lacey Spears, Julie Conley (and look at what happened when uninformed judges returned that child against medical advice), Hope Ybarra, and Dixie Blanchard. Here is some really good reporting on what this allegation was: http://media.star-telegram.com/Munchausenmoms/ Here are the two research papers: http://www.sciencedirect.com/science/article/pii/0145213487900810 http://www.sciencedirect.com/science/article/pii/S0145213403000309 25% of sibling are dead in that second study. 25%!!! Unbelievable ruling. Chilling. Wrong.

  4. Mr. Levin says that the BMV engaged in misconduct--that the BMV (or, rather, someone in the BMV) knew Indiana motorists were being overcharged fees but did nothing to correct the situation. Such misconduct, whether engaged in by one individual or by a group, is called theft (defined as knowingly or intentionally exerting unauthorized control over the property of another person with the intent to deprive the other person of the property's value or use). Theft is a crime in Indiana (as it still is in most of the civilized world). One wonders, then, why there have been no criminal prosecutions of BMV officials for this theft? Government misconduct doesn't occur in a vacuum. An individual who works for or oversees a government agency is responsible for the misconduct. In this instance, somebody (or somebodies) with the BMV, at some time, knew Indiana motorists were being overcharged. What's more, this person (or these people), even after having the error of their ways pointed out to them, did nothing to fix the problem. Instead, the overcharges continued. Thus, the taxpayers of Indiana are also on the hook for the millions of dollars in attorneys fees (for both sides; the BMV didn't see fit to avail itself of the services of a lawyer employed by the state government) that had to be spent in order to finally convince the BMV that stealing money from Indiana motorists was a bad thing. Given that the BMV official(s) responsible for this crime continued their misconduct, covered it up, and never did anything until the agency reached an agreeable settlement, it seems the statute of limitations for prosecuting these folks has not yet run. I hope our Attorney General is paying attention to this fiasco and is seriously considering prosecution. Indiana, the state that works . . . for thieves.

  5. I'm glad that attorney Carl Hayes, who represented the BMV in this case, is able to say that his client "is pleased to have resolved the issue". Everyone makes mistakes, even bureaucratic behemoths like Indiana's BMV. So to some extent we need to be forgiving of such mistakes. But when those mistakes are going to cost Indiana taxpayers millions of dollars to rectify (because neither plaintiff's counsel nor Mr. Hayes gave freely of their services, and the BMV, being a state-funded agency, relies on taxpayer dollars to pay these attorneys their fees), the agency doesn't have a right to feel "pleased to have resolved the issue". One is left wondering why the BMV feels so pleased with this resolution? The magnitude of the agency's overcharges might suggest to some that, perhaps, these errors were more than mere oversight. Could this be why the agency is so "pleased" with this resolution? Will Indiana motorists ever be assured that the culture of incompetence (if not worse) that the BMV seems to have fostered is no longer the status quo? Or will even more "overcharges" and lawsuits result? It's fairly obvious who is really "pleased to have resolved the issue", and it's not Indiana's taxpayers who are on the hook for the legal fees generated in these cases.

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