NEW - Ahlborn and a Hidden Medicaid Lien?  An Article.

See:  Supplemental Needs Trusts: A Trap For Unwary Attorneys

See: New York State Department
of Health Analysis of Ahlborn

See: Supplemental Needs Trusts: The Second Decade.


The issue is Medicaid’s remainder interest in a supplemental/special needs trust payable at the death of the trust beneficiary.  During the Cricchio era, certain attorneys argued that Medicaid’s remainder interest in supplemental/special needs trusts was for all Medicaid paid during lifetime.  On the  other hand, New York City and New York State argued that Medicaid’s interest was limited to Medicaid paid as of the date of the creation of  the supplemental needs trusts.  Unfortunately, certain Medicaid districts have now adopted the argument of these attorneys, stating that the attorneys who argued for Medicaid’s broadened remainder interest is the correct interpretation of the supplemental needs statute.  Therefore, these Medicaid districts are demanding the payment, at the death of the Medicaid beneficiary, for all Medicaid paid during lifetime, which can, in certain circumstances, substantially increase Medicaid’s remainder interest. 

The above issue is before the Second Department, in which Medicaid has taken an appeal from its loss in the lower court.  Jay J. Sangerman, PLLC has litigated the matter in the lower court and now in the Appellate Division.  Respondent’s answering papers are due in or about March 1, 2007.

For further information, click here for New York Law Journal article on the above issue.