Posted on January 07, 2021
Nonpayment of a nursing home can be an issue, especially during a period of Medicaid ineligibility created by gifting. The questions becomes “Who will pay the invoice for the nursing home during this period?”
An experienced Elder Law Attorney will be able to help prepare a client for this situation, even if that client is going into a nursing home imminently. Gifting and purchasing Medicaid Compliant Annuities will likely be part of the plan.
However, if the nursing home isn’t paid and the resident has no ability to pay, the nursing home may seek repayment from “a spouse, child or parent who has ‘sufficient financial ability’ to be responsible or maintain for assisting the resident to pay. This is called the Pennsylvania Filial Support Law.
In the Pittas case, the Pennsylvania Superior Court held Mr. Pittas responsible for the cost of his mother’s nursing home care because he had net income in excess of $85,000 and because he did not otherwise establish that he lacked sufficient financial ability to financially support her. The mother had been discharged from the nursing home and moved to Greece.
The opinion further states the nursing home does not need to consider other possible sources of income for the resident before proceeding against a relative for payment. The statute allows for joint and several liability which allows the nursing home to hold one or more relatives liable.
The meaning of “indigent” as used in the filial support statute “includes, but is not limited to, those who are completely destitute and helpless…” and that it “also encompasses those persons who have some limited means, but whose means are not sufficient to adequately provide for their maintenance and support.”
More on the Pittas case can be found in our detailed article: Demystifying Medicaid Planning
A more detailed discussion on Medicaid can be found here: Demystifying Medicaid Planning
John Bartlett concentrates his practice on elder law, Medicaid planning, estate and trust planning, and estate administration.