State Cannot Recover Medicaid Payments from Spouse’s Estate (The Hines Case)
In May 2006, Mr. Perlis received a unanimous decision from the Illinois Supreme Court which ruled that the State cannot recover Medicaid payments from the estate of a surviving spouse. The case involved Beverly and Julius Tutinas, a married couple who jointly owned a home and a vehicle. Mr. Tutinas entered a nursing facility and received Medicaid up until the time of his death. There was never any probate estate opened after Mr. Tutinas’ death. Mrs. Tutinas died four years later. A probate estate was opened for Mrs. Tutinas since the home and the vehicle were owned by her individually at the time of her death.
The Illinois Department of Public Aid filed a claim in Mrs. Tutinas’ estate for repayment of the Medicaid it paid to Mr. Tutinas. The Department claimed that under state law, it had the right to recover from the estate of a Medicaid recipient spouse. The trial court agreed, and held that state law did not conflict with federal law. The Appellate Court of Illinois reversed and held that the state statute authorizing the state to recover from the estate of a surviving spouse exceeded the authority granted by federal statute. The Illinois Supreme Court upheld the Appellate Court’s decision.