W.T. v. Division of Medical Assistance and Health Services, 391 N.J.Super. 25, 916 A.2d 1066 (N.J.Super.A.D.,2007).
Appeal was taken from final agency decision of the Department of Human Services Division of Medical Assistance and Health Services (DMAHS) upholding the assessment of a transfer penalty delaying the effective date of institutionalized applicant’s participation in Medicaid program, based on an unequal distribution of marital assets between applicant and his spouse under property settlement agreement (PSA) incorporated into judgment of divorce. The Superior Court, Appellate Division, Collester, J.A.D., held that: (1) any in-house rule or policy of DMAHS, pursuant to which matrimonial settlements or divorce judgments providing equitable distribution of less than 50 percent of marital assets to an incapacitated spouse required a transfer penalty when made within look-back period, violated the Administrative Procedure Act (APA) and state’s matrimonial law, and (2) the unequal distribution of marital assets under the PSA had as its purpose something other than qualifying applicant for Medicaid, and thus no transfer penalty was warranted. Reversed.
Attorney: Eugene Rosner, Esq.
Published Decision: https://law.justia.com/cases/new-jersey/appellate-division-published/2007/a0089-05-opn.html