Idaho Department of Health & Welfare v. McCormick
283 P.3d 785
Idaho2012Background
- Martha Perry received over $100,000 in Medicaid benefits; George Perry, her husband, died in 2009.
- Martha previously owned a Ada County home; she conveyed it to herself and George via quitclaim in 2002.
- George, as Martha's attorney-in-fact (power of attorney, 2005), later conveyed Martha’s remaining interest to himself in 2006.
- Probate estate primarily consisted of the home; it was sold for net $81,688.95 after George’s death.
- Idaho Department of Health and Welfare sought to recover Medicaid costs from George’s and Martha’s estates under I.C. § 56-218.
- Magistrate and district courts denied recovery, holding Martha lacked a still-existing interest at death due to the conveyance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal law preempts Idaho recovery scope | Department argues it may recover from both spouses’ estates for assets once community property. | Estate argues recovery limited to Martha’s surviving interest; Barg preemption applies. | No preemption; recovery may extend to community assets. |
| Whether power of attorney enabled conveyance to George | Department contends assets traced through assets in which Martha had an interest; POA transfers eligible. | Estate argues Martha had no post-transfer interest at death; POA invalidated recovery. | District court erred; recovery feasible notwithstanding purported POA transfer. |
| Whether the Estate is entitled to appellate attorney fees | Department not seeking fees; but Estate argues for fees if prevailing. | Estate claims fees as prevailing party on appeal. | Estate not entitled to fees; Department prevails on the merits. |
Key Cases Cited
- Estate of Barg, 752 N.W.2d 52 (Minn. 2008) (ambiguities in 'other arrangement' include lifetime transfers)
- Jackman, 132 Idaho 213 (Idaho 1998) (pre-OBRA reliance on state definition of estate; not controlling here)
- Christian v. Mason, 148 Idaho 149 (Idaho 2009) (federal preemption analysis with Medicaid objectives)
- Schulz, 151 Idaho 863 (Idaho 2011) (statutory interpretation; give effect to all words)
- Ahlborn, 547 U.S. 268 (U.S. 2006) (Medicaid: payer of last resort; limits of estate recovery)
- In re Estate of Wirtz, 607 N.W.2d 882 (N.D. 2000) (overall purpose guiding recovery of assets traceable to recipient)