The Estate of Joan M. Marusich v. State of Wyoming, Ex Rel., Department of Health, Office of Healthcare Financing/Equalitycare
2013 WY 150
| Wyo. | 2013Background
- Marusich home owned as tenancy by the entirety; Department sought Medicaid recovery for benefits paid for Mr. Marusich who died in 2005.
- Estate petitioned to remove a lien; district court held lien valid but disputed amount; final judgment later entered on amount; appeal followed.
- Wyoming expanded the definition of “estate” to include survivorship and non-probate assets for Medicaid recovery; tenancy by the entirety falls within this expansive estate.
- Lien against the surviving spouse’s property was permitted because Mr. Marusich owned an interest in the home at death and the estate definition includes such survivorship interests.
- Estate argued Medicaid lien should be invalidated under the False Lien statute; court held the lien validity was established and False Lien remedies did not apply; amend/quiet-title issues were resolved against estate.
- Motion to amend petition to conform to quiet-title theory was denied; court held result would be the same given lien validity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether tenancy by the entirety can be reached by a Medicaid lien. | Estate: lien cannot reach entirety property since not listed in § 42-4-206(g)(ii). | Department: estate expansion (§ 42-4-206(g)(ii)) includes survivorship interests and “other arrangement”; lien valid. | Lien valid; tenancy by the entirety falls within the estate definition. |
| Whether the estate’s receipt of benefits and survivorship interests permits a lien against the surviving spouse’s property. | Estate: survivorship interest should shield property from lien. | Department: expanded estate means survivorship assets are available for recovery after death. | Authorized lien against survivorship property under the expanded estate concept. |
| Whether the False Lien statute applies to this Medicaid lien and authorizes damages and fees. | If lien groundless, damages/fees awarded; if valid, costs/fees to lien claimant. | Lien found valid; false lien remedies not triggered; fees not decided on record. | Statute does not provide additional remedy because lien is valid; no award of fees at issue. |
Key Cases Cited
- Arkansas Dep’t of Health & Human Servs. v. Ahlborn, 547 U.S. 268 (U.S. 2006) (Medicaid is the payer of last resort and recovery is governed by federal/state schemes)
- Ward Terry & Co. v. Hensen, 297 P.2d 213 (Wyo. 1956) (tenancy by the entirety protections and survivorship rules)
- Peters v. Dona, 54 P.2d 817 (Wyo. 1936) (tenancy by the entirety; joint conveyance constraints)
- Witzel v. Witzel, 386 P.2d 103 (Wyo. 1963) (tenancy by the entirety and survivorship concepts in Wyoming law)
- Colorado Nat’l Bank v. Miles, 711 P.2d 390 (Wyo. 1985) (general principles on survivorship and execution against marital property)