Michigan Supreme Court to rule on whether spouses’ transfer of assets should impact residents’ Medicaid eligibility

Three Michigan nursing home residents who recently lost a battle over Medicaid eligibility are now appealing to the state’s highest court.

The dispute comes after the spouses for the trio transferred their assets into a trust. Nursing home residents argued that those assets should not be counted against them in determining whether they are eligible for Medicaid benefits to pay for long-term care, the Courthouse News Service reports. More than 45 days after their Medicaid applications were filed, the Michigan Department of Health and Human Services put a new policy in play that deemed such trusts as countable assets.

The residents lost in a state appeals court last year, but their lawyers appealed to the Michigan Supreme Court, with oral arguments heard earlier this week. Justices noted that a couple could theoretically make dollars from the trust available to use the day after a nursing home resident is granted Medicaid eligibility.