Ohio Department of Job & Family Services v. Tultz

787 N.E.2d 1262, 152 Ohio App. 3d 405
CourtOhio Court of Appeals
DecidedMarch 31, 2003
DocketC.A. No. 21241.
StatusPublished
Cited by5 cases

This text of 787 N.E.2d 1262 (Ohio Department of Job & Family Services v. Tultz) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Department of Job & Family Services v. Tultz, 787 N.E.2d 1262, 152 Ohio App. 3d 405 (Ohio Ct. App. 2003).

Opinion

Whitmore, Judge.

{¶ 1} Defendants-appellants Gary J. Tultz and Sharon A. Bloomer, coexecutors of the estate of Ann M. Tultz, have appealed from an order of the Summit County Court of Common Pleas. The trial court granted judgment in favor of plaintiff-appellee Ohio Department of Job and Family Services on its action on the estate’s rejection of its claim in probate, and on the executors’ counterclaim *407 seeking an order declaring void a lien placed on real property that had passed through the estate. This court affirms.

I

{¶ 2} John and Ann Tultz were husband and wife. From September 1998 until John’s death in April 2000, the Ohio Department of Job and Family Services (“ODJFS”) paid $74,613.41 out of Medicaid funds on behalf of John.

{¶ 3} Ann died in February 2001, and her estate included certain real estate appraised at $50,000. In September 2001, ODJFS recorded a lien against the real estate in the amount of $74,613.41 for recovery of the costs of services paid under Medicaid. ODJFS then filed a claim in that amount against Ann’s estate; the estate rejected the claim.

{¶ 4} In January 2002, ODJFS filed the instant action on its claim pursuant to R.C. 2117.12, naming as defendants the estate’s co-executors Gary Tultz and Sharon Bloomer (“executors”). ODJFS requested judgment against the estate in the amount of $74,613.41, plus interest and costs.

{¶ 5} The executors filed an answer and counterclaim, seeking an order declaring ODJFS’s lien void and directing the Summit County Auditor to strike the lien from the records of Summit County. In their counterclaim, the executors alleged that the lien was not authorized by Ohio law because Ohio allows recovery of costs paid only after the lien is recorded, and the costs ODJFS was attempting to recover through the lien were paid before the lien was obtained.

{¶ 6} Following a pretrial conference, the parties agreed to submit all issues raised by the complaint and counterclaim to the court on stipulations of fact and briefs. The court thereafter entered judgment in favor of ODJFS on its complaint in the amount of $74,613.41. The court also entered judgment in favor of ODJFS on the executors’ counterclaim, concluding that the lien filed by ODJFS was legal and valid.

{¶ 7} The executors have timely appealed, asserting two assignments of error.

II

Assignment of Error Number One

“The trial court wrongly decided that Ohio law permits estate recovery from the estate of the Medicaid recipient’s former spouse.”

{¶ 8} In their first assignment of error, the executors have argued that the trial court erred in determining that Ohio allows recovery of the costs of Medicaid services from the estate of the recipient’s former spouse. The executors have *408 contended that Ohio law limits the source of such recovery to the recipient’s estate.

{¶ 9} This court reviews de novo a trial court’s interpretation and application of statutes. See Akron v. Frazier (2001), 142 Ohio App.3d 718, 721, 756 N.E.2d-1258, citing State v. Sufronko (1995), 105 Ohio App.3d 504, 506, 664 N.E.2d 596. Thus, we do not afford deference to the trial court’s determination in conducting our review. Frazier, 142 Ohio App.3d at 721, 756 N.E.2d 1258.

{¶ 10} R.C. 5111.11 allows recovery by ODJFS of the costs of services correctly paid to Medicaid recipients and provides:

“For the purpose of recovering the cost of services correctly paid under the medical assistance program to a recipient age fifty-five or older, [ODJFS] shall institute an estate recovery program against the property and estates of medical assistance recipients to recover medical assistance correctly paid on their behalf to the extent that federal law and regulations permit the implementation of a program of that nature. The department shall seek to recover medical assistance correctly paid only after the recipient and the recipient’s surviving spouse, if any, have died and only at a time when the recipient has no surviving child who is under age twenty-one or blind or permanently and totally disabled.” R.C. 5111.11(B).

{¶ 11} R.C. 5111.111 authorizes ODJFS to file liens against property pursuant to the recovery program established by R.C. 5111.11, and provides:

“[ODJFS] may place a lien against the property of a medical assistance recipient or recipient’s spouse * * * that the department may recover as part of the program instituted under [R.C. 5111.11], When medical assistance is paid on behalf of any person in circumstances under which federal law and regulations and this section permit the imposition of a lien, the director of [ODJFS] or a person designated by the director may sign a certificate to the effect. * * * From the time of filing the certificate in the office of the county recorder, the lien attaches to all real property of the recipient or spouse described therein for all amounts of aid which thereafter are paid, and shall remain a lien until satisfied.” R.C. 5111.111.

{¶ 12} The executors have argued that the language of R.C. 5111.11(B) limits ODJFS to recovery from the estate of the recipient of medical assistance, and does not authorize recovery from the estate of a recipient’s deceased spouse. The executors have contended that Ohio law would have authorized ODJFS to place a lien on the property of John and Ann while John was still alive, but ODJFS is barred from placing a lien on property in Ann’s estate after her death.

{¶ 13} R.C. 5111.11(B), however, prohibits ODJFS from seeking recovery of Medicaid costs until “after the recipient and the recipient’s surviving spouse, if *409 any, have died[.]” The Ohio statute also limits ODJFS’s institution of an estate recovery program “to the extent that federal law and regulations permit the implementation of a program of that nature.” R.C. 5111.11(B). Under federal law, recovery “may be made only after the death of the individual’s surviving spouse[.]” Section 1396p(b)(2), Title 42, U.S.Code.

{¶ 14} In addition, Ohio law limits ODJFS’s imposition of liens for purposes of recovery to “circumstances under which federal law and regulations and this section permit the imposition of a lien[.]” R.C. 5111.111. Federal law prohibits imposition of a lien on property prior to the recipient’s death, except under certain limited circumstances. Section 1396p(a)(1), Title 42, U.S.Code.

{¶ 15} The necessary consequence of the executors’ position — that ODJFS can recover only from the estate of the recipient but cannot commence recovery until after the death of the surviving spouse — would be that recovery is precluded where the assets of the recipient’s estate have been distributed and the estate closed. In other words, where the recipient is survived by a spouse, ODJFS would be able to recover only if the surviving spouse died while the recipient’s estate was still open and subject to ODJFS’s claim.

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Cite This Page — Counsel Stack

Bluebook (online)
787 N.E.2d 1262, 152 Ohio App. 3d 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-department-of-job-family-services-v-tultz-ohioctapp-2003.