Williamson v. Department of Public Welfare

646 A.2d 38, 166 Pa. Commw. 79, 1994 Pa. Commw. LEXIS 404
CourtCommonwealth Court of Pennsylvania
DecidedJuly 15, 1994
DocketNo. 1111 C.D. 1993
StatusPublished
Cited by2 cases

This text of 646 A.2d 38 (Williamson v. Department of Public Welfare) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williamson v. Department of Public Welfare, 646 A.2d 38, 166 Pa. Commw. 79, 1994 Pa. Commw. LEXIS 404 (Pa. Ct. App. 1994).

Opinion

KELTON, Senior Judge.

In this troublesome case, the Department of Public Welfare denied Mae Williamson’s application for nursing home care assistance. The Department determined that Mrs. Williamson was disqualified from nursing home benefits because of transfers of real estate and savings accounts from her to her son, Richard Williamson, for less than adequate consideration. These transfers were made by the son, to himself, while purportedly acting as attorney-in-fact for his mother.

Mrs. Williamson petitions for review of the July 1, 1993 corrected final order of the Secretary of the Department of Welfare upholding Hearing Officer Henry A. Daniel’s denial of an application for nursing home care.1 (R.R. 87.) The principal issue before us is whether there is substantial evidence to support the Department’s determination that Mrs. Williamson failed to rebut the presumption that the transfers of property from her to her son were for less than fair and adequate consideration and were made for the prohibited purpose of qualifying her for assistance.2 We affirm.

Section 1404(a) of the Public Welfare Code, Act of June 13,1967, P.L. 31 as amended, 62 P.S. § 1404(a) provides:

(a) Any person applying for medical assistance benefits shall certify to the department that he or she has not transferred title to or ownership interests in any real or personal properly to any third person or party within the two years immediately preceding such application; if such a transfer has occurred, the recipient must disclose the nature of the transfer and must demonstrate that it involves, a bona fide arm’s length transaction resulting in compensation paid to the transferor in an amount equal to or greater than the fair market value of the property as determined by the department.

See also Park v. Department of Public Welfare, 135 Pa.Commonwealth Ct. 457, 582 A.2d 1138 (1990); Groblewski v. Department of Public Welfare, 108 Pa.Commonwealth Ct. 102, 528 A2d 1084 (1987); Goughenour v. Department of Public Welfare, 100 Pa.Commonwealth Ct. 401, 514 A.2d 993 (1986).

Our scope of review requires that we determine whether the Department’s adjudication comports with the applicable law, whether its findings are supported by substantial evidence and whether any constitutional rights were violated. Cruz v. Department of Public Welfare, 80 Pa.Commonwealth Ct. 360, 472 A.2d 725 (1984).

On January 15, 1992, the son, presumably acting pursuant to a February 23, 1991 power of attorney granted by his mother (R.R. 44-46), transferred his mother’s residence at 164 Dogwood Drive, Levittown to himself for a nominal consideration of $1.00. Langhorne [40]*40Gardens Nursing Home admitted Ms mother two days later on January 17, 1992 as a private payor. (February 8, 1993 Adjudication at 5.)

On August 7, 1992, the son, acting as representative of his mother, filed an application for medical assistance and nursing home care with the Bucks County Assistance Office. (R.R. 10-14.) In response to the question whether there had been a sale or transfer of personal property or real estate within the last two years, the son answered “no.” He further responded that Ms mother had oMy $300.00 in her savings account. (R.R. 12.) In fact, Hearing Officer Harry A. Daniel found that “[t]hree days prior to the [mother’s] admittance into the nursing center, [she] had approximately $28,420.36 in liquid assets in the form of $1,960.86 in a custom checking account, $6,513.50 in a statement savings account, and $20,000 worth of Certificates of Deposit (CD’s).” (Adjudication at 5.)

On September 2, 1992, the County Assistance Office rejected the mother’s application for nursing home care having determined that she had not received fair consideration for the transfer of her resources including her bank accounts and real estate. On October 23, 1992, Langhorne Gardens submitted a letter advising her of its intent to discharge her for nonpayment, effective thirty days after November 23, 1992.

On behalf of the mother, Sauers Consultation and Services for the Elderly (Sauers) requested a stay of her discharge from the nursing home on October 26, 1992. The Office of Hearing and Appeals granted the representative’s request for intervention and a stay.

On February 8,1993, Hearing Officer Daniel demed the mother’s appeal, concluding that the mother had received no benefit from the transfer of the residence or the son’s appropriation of about $16,000 of her liquid assets. On February 18,1993, Sauers sought reconsideration of the order denying the appeal. (R.R. 79.) On March 2, 1993, the Secretary of the Department of Welfare granted reconsideration. After two so-called final orders on the merits, dated April 9 and May 14, 1993 (R.R. 85-86), the Secretary issued the July 1, 1993 “Corrected Final Order on The Merits” (R.R. 87) upholding the demal of the mother’s application for nursing home care assistance.

1. Burden of Proof

55 Pa.Code § 178.171(a) provides as follows:

(a) An applicani/recipient who disposes of real or personal property having a value of $500.00[3] or more without receiving fair consideration within 2 years immediately preceding the date of Ms application for MA [medical assistance] is presumed to have disposed of the property with the intention of qualifying for MA.

55 Pa.Code § 178.171(a) (footnote added).

Counsel for the mother first argues that there is no substantial evidence to support the Department’s finding that she is ineligible for nursing home care assistance because the County Assistance Office did not present any evidence to rebut the presumption that the transfer was for purposes of qualifying for medical assistance.

Contrary to the belief of the mother’s counsel, however, it was not the Department’s burden to rebut the presumption that a transfer made within two years was for purposes of qualifying for medical assistance. If the ultimate conclusion of the fact finder is that the transfer was made for the purpose of qualifying for medical assistance, the result is that, for the purpose of determining eligibility, the transferred assets are included witMn the applicant’s assets. Park; Grob-lewski

According to 55 Pa.Code § 178.172, “[i]f the presumption to qualify for MA is made by the Department, the applicant/recipient is notified of the finding, in writing, and is [41]*41advised of the right to rebut this presumption within 15 days from the date the written notice is mailed.”

For good reasons, the onus is on the applicant, and not the Department, to rebut a presumption that a transfer made within two years was for purposes of qualifying for assistance. Only the applicant has the requisite knowledge available to attempt to prove why he or she satisfies any of the 55 Pa.Code § 178.101(f) exceptions to ineligibility when a transfer is made within two years of the application date.

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Related

Steinberg v. Department of Public Welfare
758 A.2d 734 (Commonwealth Court of Pennsylvania, 2000)
Breitkreutz v. Department of Public Welfare
699 A.2d 1378 (Commonwealth Court of Pennsylvania, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
646 A.2d 38, 166 Pa. Commw. 79, 1994 Pa. Commw. LEXIS 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williamson-v-department-of-public-welfare-pacommwct-1994.