In Re the Estate of Bruce

260 S.W.3d 398, 2008 Mo. App. LEXIS 656, 2008 WL 2020441
CourtMissouri Court of Appeals
DecidedMay 13, 2008
DocketWD 68051
StatusPublished
Cited by8 cases

This text of 260 S.W.3d 398 (In Re the Estate of Bruce) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Estate of Bruce, 260 S.W.3d 398, 2008 Mo. App. LEXIS 656, 2008 WL 2020441 (Mo. Ct. App. 2008).

Opinions

[400]*400PAUL M. SPINDEN, Presiding Judge.

The Estate of Orville Bruce appeals the circuit court’s judgment for the State in its claim against the estate for reimbursement of Medicaid payments made to Orville Bruce’s deceased wife, Minnie. The State asserted a right to the reimbursement pursuant to Section 473.399, RSMo 2000. The estate responded that federal law, 42 U.S.C. Section 1396p, preempts reimbursement under Section 473.399. We agree and reverse the circuit court’s judgment for the State.

Minnie Bruce received Medicaid benefits from October 1990 until she died on February 28, 2002. No probate estate was administered for her. On April 17, 2005, Orville Bruce died. He never received Medicaid benefits. His estate consisted of a house and an automobile. Bruce had owned the house jointly with his wife as tenants by the entirety. His estate was liquidated to $97,000. Pursuant to Section 473.399, the State sought $150,528.63 from the estate for reimbursement of the Medicaid payments to Minnie Bruce. The circuit court granted the State’s claim.

In its only point on appeal, Bruce’s estate asserts that the circuit court erred because, although Section 473.399 permits the State to seek reimbursement from a spouse’s estate, the United States Congress enacted Section 1396p that forbids such a claim. The estate argues that the federal statute preempts enforcement of Section 473.399 pursuant to the United States Constitution’s supremacy clause.1 This clause says that federal law “shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” U.S. Const, art. VI, cl. 2. Federal law preempts state law in three situations: (1) express preemption, when a federal directive expressly declares that the federal law preempts state law, (2) implied field preemption, when “the scheme of federal regulation is so pervasive as to make reasonable the inference that Congress left no room for the States to supplement it,” and (3) conflict preemption, when “compliance with both federal and state regulations is a physical impossibility, or where state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Jensen v. Missouri Department of Health and Senior Services, 186 S.W.3d 857, 860 (Mo.App. 2006).

Medicaid is a cooperative federal — state program designed to assist the states in providing health care to people [401]*401who cannot afford it. McNeil—Terry v. Roling, 142 S.W.3d 828, 833 (Mo.App. 2004). If a state opts to participate in the program, it must comply with all federal statutory and regulatory requirements. Id. Because Medicaid is a cooperative program, it is not susceptible to express or implied field preemption. It is susceptible only to conflict preemption. Jensen, 186 S.W.3d at 860-61.

Missouri has opted to participate in the Medicaid program. Gee v. Department of Social Services, Family Support Division, 189 S.W.3d 621, 623 (Mo.App.2006). In Section 473.398 and 473.399, RSMo 2000, the General Assembly authorized Missouri’s Medicaid authorities to obtain reimbursement from a recipient’s estate after the recipient’s death or from the estate of the recipient’s spouse after the spouse’s death. Section 473.399.2 says:

For the purposes of this section, the providing of assistance shall create an obligation which may be recovered by filing a claim in the probate division of the circuit court against the decedent estate of the spouse of the deceased recipient upon such spouse’s death as provided by the probate code of Missouri, chapters 472, 473, 474 and 475, RSMo. The amount of the state debt shall be the full amount of assistance without interest provided to the recipient during the marriage of such recipient and spouse; provided that the liability of the obligor estate shall not exceed the value of the combined resources of the recipient and the spouse of the recipient on the date of death of the recipient.

Orville Bruce’s estate asserts that Section 473.399, which clearly authorizes spousal recovery, conflicts with 42 U.S.C. Section 1396p, which clearly prohibits it in this case.

When interpreting a statute, the judiciary’s primary task is to ascertain legislative intent. The preferred means for doing this is to accord the statute’s language its plain and ordinary meaning. Cline v. Teasdale, 142 S.W.3d 215, 222 (Mo.App.2004).

Section 1396p(b) says:

Adjustment or recovery of medical assistance correctly paid under a State plan
(1) No adjustment or recovery of any medical assistance correctly paid on behalf of an individual under the State plan may be made, except that the State shall seek adjustment or recovery of any medical assistance correctly paid on behalf of an individual under the State plan
A. In the case of an individual described in subsection (a)(1)(B) of this section, the State shall seek adjustment or recovery from the individual’s estate or upon sale of the property subject to a lien imposed on account of medical assistance paid on behalf of the individual.
B. In the case of an individual who was 55 years of age or older when the individual received such medical assistance, the State shall seek adjustment or recovery from the individual’s estate, but only for medical assistance consisting of — (i) nursing facility services, home and community — based services, and related hospital and prescription drug services, or (ii) at the option of the State, any items or services under the State plan.
C. (i) In the case of an individual who has received (or is entitled to receive) benefits under a long — term care insurance policy in connection with which assets or resources are disregarded in the manner described in clause (ii), except as provided in such clause, the State shall seek ad[402]*402justment or recovery from the individual’s estate on account of medical assistance paid on behalf of the individual for nursing facility and other long — term care services[.]2

In Section 1396p(b), the United States Congress plainly restricts recovery of Medicaid benefits from a recipient’s estate to three specific situations, and none authorizes a state to seek recovery from the recipient’s spouse. Because Congress has mentioned these three situations expressly, we infer that it intended to exclude recovery in other situations. Groh v. Ballard, 965 S.W.2d 872, 874 (Mo.App.1998). See also In re the Estate of Budney, 197 Wis.2d 948, 541 N.W.2d 245, 246 (App. 1995) (“[Section 1396p(b) ] does not counter the initial blanket prohibition by specifically authorizing a State to recover medical assistance benefits paid on behalf of a recipient from a surviving spouse’s estate[.]”); Hines v. Department of Public Aid, 221 Ill.2d 222, 302 Ill.Dec.

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In Re the Estate of Bruce
260 S.W.3d 398 (Missouri Court of Appeals, 2008)

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Bluebook (online)
260 S.W.3d 398, 2008 Mo. App. LEXIS 656, 2008 WL 2020441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-bruce-moctapp-2008.