Geston, et al. v. Anderson, No. 12-2224 (8th Cir. 2013)
Annotate this CasePlaintiff and his wife appealed the denial of his application for Medicaid benefits, arguing that the Department wrongfully denied the application because it had improperly counted against the wife's eligibility an annuity owned by the wife. The district court ruled in favor of plaintiffs and the Department appealed. The court concluded that, because the wife had no right, authority, or power to liquidate the annuity, the annuity benefits were not a resource, but rather was income indicated by the federal statute defining "unearned income." Therefore, the Department applied a more restrictive methodology under state law by classifying the annuity benefits as a resource that counted against plaintiff's eligibility for Medicaid benefits. The court rejected the Department's counter-arguments and the remaining arguments, and affirmed the judgment of the district court.
Court Description: Civil case - Medicaid. In action alleging the North Dakota Department of Human Services improperly counted an annuity owned by his wife in determining plaintiff's eligibility for Medicaid benefits, the district court did not err in concluding the North Dakota statute which requires the annuity to be counted - North Dakota Century Code Sec. 5-24.1-02.8(7)(b) - violates and is preempted by federal Medicaid law.
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