689 S.W.3d 274
Tex.2024Background
- Clyde and Dorothy Burt sold their longtime home and moved to a rental property; seven years later, they entered a skilled-nursing facility.
- After admission, the Burts used their available assets to purchase a one-half interest in their former home from their daughter and son-in-law, then executed a Lady Bird deed creating a life estate.
- The Burts’ available resources, after acquiring the property interest, fell below the Medicaid eligibility threshold.
- The Burts declared their intent to treat this property as their home for Medicaid purposes; they applied for Medicaid while in the nursing facility and never moved back.
- The Texas Health and Human Services Commission denied Medicaid, concluding the property did not qualify as a "home" under federal law for exclusion from resource calculation.
- Lower courts reversed and ruled in favor of the Burts’ estate, prompting review by the Texas Supreme Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether property purchased post-admission can be excluded as a "home" for Medicaid eligibility | Wallace: Intent to return is sufficient; ownership and subjective intent matter, not timing of purchase. | Commission: Only a principal residence owned and occupied before claim qualifies as a "home"; post-admission purchases do not. | Court agrees with Commission: Only residence owned/occupied before claim can be excluded; post-admission acquisition not excludable. |
Key Cases Cited
- El Paso Hosp. Dist. v. Tex. Health & Hum. Servs. Comm’n, 247 S.W.3d 709 (Medicaid administration and federal-state program parameters)
- Mills v. Bartlett, 377 S.W.2d 636 (Texas: intent alone does not establish residence)
- Owens Corning v. Carter, 997 S.W.2d 560 (Intent and presence must coincide to establish residence)
- Sirius XM Radio, Inc. v. Hegar, 643 S.W.3d 402 (Plain language of statute controls regulatory interpretation)
