Court decision on property liens may face appeal

Wednesday, Aug. 7, 2002 | 9:15 a.m.

CARSON CITY -- A district court decision that would limit the state Welfare Division from imposing liens on homes to recover taxpayer money spent on Medicaid patients may be appealed to the Nevada Supreme Court.

State Welfare Administrator Nancy Ford noted that District Judge Ron Parraguirre issued a verbal decision in the case of 87-year-old widow Agnes Ullmer of Las Vegas that barred the state from putting a $144,000 lien on her home.

Ford said state lawyers are waiting for the written decision.

"We may ask for a stay and appeal to the Supreme Court," she said Tuesday.

But James O'Reilly, a Las Vegas lawyer representing Ullmer, says he's confident the Supreme Court will uphold the Parraguirre ruling. Under that decision, the welfare division must release all Medicaid liens presently on homes, he said.

"Nevada stands alone in this heinous practice of liening the home after death of one of the spouses," O'Reilly said. He estimated there may be more than 120 cases statewide.

Sandy Webb, program specialist for Medicaid recovery in the welfare division, said since 1995, there have been only about 40 liens placed on the homes of the surviving spouse.

In the Ullmer case, Medicaid paid $144,000 for nursing home care for her late husband Harold who died in 2001. O'Reilly said the state sought to place the lien within 90 days of the death of the husband.

O'Reilly said the widow wanted to sell the home, worth $110,000 to $120,000, and go into an assistant living center. With her $648 from Social Security and the proceeds from the home, the widow estimated she would pay for the assisted living center for about five years, the attorney said.

When the state sought to put the lien on the home, Judge Parraguirre ruled that federal law prevents states from placing liens on homes until both husband and wife have died.

There is disagreement as to what can happen next. Webb said a surviving spouse can sell the home and the lien will be removed. The spouse gets to keep the money free and clear, Webb said. There is no effort to recover the money, welfare officials said.

O'Reilly said the welfare division has required the surviving spouse to apply for a hardship exception to be able to sell the home and retain the money. In the past, few of these exceptions were granted, he said.

And not many surviving spouses knew they could ask for the hardship exception, O'Reilly said.