334 P.3d 876
Kan. Ct. App.2014Background
- Muir, a quadriplegic in a long-term-care facility, receives $4,567.17 monthly from disability benefits and has court-ordered maintenance and child support obligations.
- Kansas Medicaid counts most of his income as available income to pay for care, with only a small nursing-home allowance exempted.
- Muir filed for Medicaid in 2010; initial determinations did not exclude his child-support/maintenance obligations from available income.
- Administrative determinations and district court rulings upheld the agency’s rule that maintenance and child-support payments are not exempt from available income.
- Muir appeals, arguing the agency misinterpreted the law and acted arbitrarily; the issue also includes an equal-protection challenge.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether agency correctly interpreted law on available income | Muir argues maintenance/child support should be exempted | Agency and statutes/manual count all unearned income as available unless exempt | No error in interpretation; exemptions not supported |
| Whether agency acted arbitrarily or capriciously | Exemption should apply to funds for support of ex-spouse/children | Same rule applies regardless of SSI-based or medically needy qualification; no arbitrary action | Agency not arbitrary or capricious |
| Whether equal-protection claim has merit | Divorced individuals are treated differently than married individuals | There is a rational basis; state policy to consider only institutionalized spouse’s income for unmarried/divorced | Equal-protection claim rejected |
Key Cases Cited
- Ussery v. Kansas Dept. of SRS, 258 Kan. 187 (1995) (approval of agency: maintenance not deducted from available income)
- Himes v. Shalala, 999 F.2d 684 (2d Cir. 1993) (SSI regulations include support as available income)
- Peura v. Mala, 977 F.2d 484 (9th Cir. 1992) (state properly counted court-ordered child-support payments as available income)
- Emerson v. Steffen, 959 F.2d 119 (8th Cir. 1992) (upholding inclusion of child-support payments as available income)
- A.C. v. E.C., 68 A.3d 265 (Del. Fam. 2013) (Delaware court on available income for Medicaid purposes)
- Clark v. Iowa Dept. of Human Services, 513 N.W.2d 710 (Iowa 1994) (state cases upholding inclusion of court-ordered support as available income)
- Estate of G.E. v. Division of Medical Assistance & Health Services, 271 N.J. Super. 229 (1994) (state court supporting available income rule)
- Tarin v. Commissioner of the Division of Medical Assistance, 424 Mass. 743 (1997) (rational basis for Medicaid income treatment)
- Village Villa v. Kansas Health Policy Authority, 296 Kan. 315 (2013) (consideration of federal vs. state guidance in Medicaid interpretation)