Kryzsko v. Ramsey County Social Services

2000 ND 43, 607 N.W.2d 237, 2000 N.D. LEXIS 59, 2000 WL 291156
CourtNorth Dakota Supreme Court
DecidedMarch 21, 2000
Docket990112
StatusPublished
Cited by14 cases

This text of 2000 ND 43 (Kryzsko v. Ramsey County Social Services) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kryzsko v. Ramsey County Social Services, 2000 ND 43, 607 N.W.2d 237, 2000 N.D. LEXIS 59, 2000 WL 291156 (N.D. 2000).

Opinions

VANDE WALLE, Chief Justice.

[¶ 1] Margaret Kryzsko appealed from a district court order affirming the North Dakota Department of Human Services (“Department”) decision to deny Medicaid benefits to Kryzsko because her available assets exceed the maximum allowed. We affirm.

[¶ 2] Kryzsko is a 52-year-old mentally disabled woman. She is the beneficiary of a trust (“Kryzsko trust”) established through a will by her deceased father, Alfred J. Kryzsko. Kryzsko’s sister, Sally Stocker, was appointed to administer the trust. It was originally funded with $32,-000 on January 1, 1996, from which Kryz-sko was being paid $450 a month. In January 1997 the trust principal of $32,-539.10 was invested in a Certificate of Deposit from which Kryzsko receives a monthly payment of $500. Under the amortization schedule, Kryzsko will continue to receive payments of $500 a month until July 2003, when the trust principal is exhausted.

[¶ 3] Kryzsko originally applied for Medicaid benefits through Ramsey County Social Services in August 1994. ■ The county denied the benefits because Social Security had denied Kryzsko benefits, as she was not eligible under Social Security’s disability or blindness standards. The county informed Kryzsko it may reverse the denial if Social Security reversed its decision and found her disabled. After Social Security reversed its denial, the county reopened Kryzsko’s application. On February 12, 1997, the county notified Kryzsko she was retroactively eligible for Medicaid benefits April 1995 through December 1995, but she was ineligible after December 31, 1995, because her countable assets, including the Kryzsko trust, exceeded the maximum $3,000 allowed for her household.

[¶ 4] Kryzsko appealed the decision to the Department. After a hearing, an Administrative Law Judge (“ALJ”) found the trust was a support trust and therefore, the assets of the trust are deemed available to Kryzsko and must be considered in determining her eligibility for Medicaid benefits. The Department adopted the ALJ’s finding. Kryzsko appealed to the district court, which affirmed the decision.

[¶ 5] When a district court decision reviewing an administrative agency decision is appealed to this Court, we review the decision of the agency and look to the record compiled before it. Stewart v. North Dakota Workers Comp. Bureau, 1999 ND 174, ¶ 7, 599 N.W.2d 280. Our review of an administrative agency decision is governed by N.D.C.C. §§ 28-32-19 and 28-32-21. Id. We affirm the agency’s decision unless its findings of fact are not supported by a preponderance of the evidence, its conclusions of law are not supported by its findings of fact, its decision is not supported by its conclusions of law, its decision is not in accordance with the law or violates the claimant’s constitutional rights, or the agency’s rules or procedures deprived the claimant of a fair hearing. Id. In determining whether the agency’s findings of fact are supported by a preponderance of the evidence, we do not make independent findings of fact or substitute our judgment for that of the agency, but determine only whether a reasoning mind could have reasonably determined that the factual conclusions were supported by the weight of the evidence based on the entire record. Id. It is the agency’s responsibility to assess the credibility of witnesses and resolve conflicts in the evidence. Id.

[239]*239[¶ 6] Medicaid is a cooperative federal-state program designed to furnish financial assistance to needy persons for their medically necessary care. Allen v. Wessman, 542 N.W.2d 748, 752 (N.D.1996). Each state electing to participate in the Medicaid program is required to establish a plan to implement the program in the individual state. 42 U.S.C. § 1396a. North Dakota has elected to participate in the program and has designated the Department to implement the program in the state. N.D.C.C. § 50-24.1-01.1 Thus, the Department has adopted rules to implement the Medicaid program and to determine the conditions of eligibility for Medicaid benefits. See N.D. Admin. Code § 75-02-02.1.

[¶ 7] An applicant for Medicaid benefits must prove eligibility. Allen, 542 N.W.2d at 752. “ ‘Medicaid is intended to be the payer of last resort, that is, other available resources must be used before Medicaid pays for the care of an individual enrolled in the Medicaid program.’ ” Id. (quoting New York State Dep’t of Social Servs. v. Bowen, 846 F.2d 129, 133 (2nd Cir.1988)). Thus, the Department considers whether the applicant has sufficient assets to meet the costs of necessary medical care and services. N.D.C.C. § 50-24.1-02. An asset must be “available” to the applicant to be considered. N.D. Admin. Code § 75-02-02.1-25(2). No one-person unit with total available assets of more than $3,000.00 is eligible for Medicaid. N.D. Admin. Code § 75-02-02.1-26.

[¶ 8] While certain assets are exempt from consideration, trusts available to the applicant are counted as assets. N.D. Admin. Code § 75-02-02.1-31. “Support trusts” are available to the applicant and considered in an applicant’s assets, whereas “discretionary trusts” are only available to the extent amounts are actually distributed to the beneficiary. N.D. Admin. Code § 75-02-02.1-31(3)(4). The regulation regarding support trusts states:

For purposes of this subsection, “support trust” means a trust which has, as a purpose, the provision of support or care to a beneficiary. The purpose of a support trust is indicated by language such as “to provide for the care, support, and maintenance of ... “to provide as necessary for the support of ... or “as my trustee may deem necessary for the support, maintenance, medical expenses, care, comfort, and general welfare”. No particular language is necessary, but words such as “care”, “maintenance”, “medical needs”, or “support” are usually present. The term includes trusts which may also be called “discretionary support trusts” or “discretionary trusts”, so long as support is a trust purpose. This subsection applies without regard to:
(1) Whether or not the support trust is irrevocable or is established for purposes other than to enable a beneficiary to qualify for medicaid or any other benefit program where availability of benefits requires the establishment of financial need; or
(2) Whether or not the discretion is actually exercised.

N.D. Admin. Code § 75-02-02.1-31(3) (emphasis added).

[¶ 9] The regulations define discretionary trusts as follows:

For purposes of this subsection, “discretionary trust” means any trust in which one or more trustees is permitted to exercise any discretion with respect to distribution to the beneficiary, but does not include any trust within the definition of a “support trust”, as that term is defined in subsection 3.

N.D. Admin. Code § 75-02-02.1-31(4).

[¶ 10] In Hecker v. Stark Cty. Social Serv. Bd., 527 N.W.2d 226, 232 (N.D.1994), a majority of this Court found the sentence underlined above in the Department’s regulation regarding support trusts void, as applied.

[¶ 11] Herman Hecker was the sole beneficiary of a trust from his deceased mother.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Reinholdt v. North Dakota Department of Human Services
2009 ND 17 (North Dakota Supreme Court, 2009)
Oyloe v. North Dakota Department of Human Services
2008 ND 67 (North Dakota Supreme Court, 2008)
Roberts v. North Dakota Department of Human Services
2005 ND 50 (North Dakota Supreme Court, 2005)
Estate of Gross v. North Dakota Department of Human Services
2004 ND 190 (North Dakota Supreme Court, 2004)
State v. Parizek
2003 ND 192 (North Dakota Supreme Court, 2003)
Linser v. Office of Attorney General
2003 ND 195 (North Dakota Supreme Court, 2003)
Corcoran v. Connecticut Dss, No. Cv 01 0511317s (Aug. 14, 2002)
2002 Conn. Super. Ct. 10288 (Connecticut Superior Court, 2002)
Opp v. Ward County Social Services Board
2002 ND 45 (North Dakota Supreme Court, 2002)
State v. Ballard
2001 ND 161 (North Dakota Supreme Court, 2001)
Schmidt v. Ward County Social Services Board
2001 ND 169 (North Dakota Supreme Court, 2001)
Eckes v. Richland County Social Services
2001 ND 16 (North Dakota Supreme Court, 2001)
Kryzsko v. Ramsey County Social Services
2000 ND 43 (North Dakota Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
2000 ND 43, 607 N.W.2d 237, 2000 N.D. LEXIS 59, 2000 WL 291156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kryzsko-v-ramsey-county-social-services-nd-2000.