Opinion ID: 1802712
Heading Depth: 2
Heading Rank: 1

Heading: Medical Assistance

Text: An individual is eligible for medical assistance only if he or she does not own cash or liquid assets in excess of $3,000. Minn.Stat. § 256B.06, subd. 1(13) (1986). Only available assets are counted, however, in determining eligibility. See 42 U.S.C. § 1396a(a)(17)(B) (1982). Hennepin County and amicus curiae Commissioner of Human Services contend that K.S.'s settlement fund is an available asset, thus precluding her eligibility for medical assistance. Appellant contends that the settlement fund is unavailable because, pursuant to Minn.Stat. § 540.08 (1986) and Ramsey County District Court order, it has been placed in a bank account until K.S. reaches the age of majority. Amicus curiae ARC contends that the fund may or may not be available depending on whether the settlement fund represents compensation for medical expenses or, alternatively, compensation for other damages such as pain and suffering. The parties and amici, in short, suggest that this court has three options: we may rule either that a minor's settlement fund is always available, that it is never available, or that a case-by-case analysis is necessary to determine if a particular fund (or any part thereof) is available. The legislature has not specifically addressed whether a minor's settlement fund is an available asset for medical assistance eligibility purposes. Certain statutory provisions and regulations, however, do provide guidance for the court. First, Minn. Rules 9505.0060 (1987) specifies examples of personal property to be included in determining the amount of assets an applicant has under Minn.Stat. § 256B.06, subd. 1(13) (1986) ($3,000 eligibility limitation). Assets to be counted include savings accounts, which are apparently where K.S.'s settlement funds are kept. Appellant's argument that these funds are unavailable because they are to remain in the bank accounts until K.S. reaches majority is unpersuasive. Funds have already been withdrawn for medical expenses, a medi-van, and home remodeling costs, thus demonstrating that the accounts are not impenetrable. Second, both Minn.Stat. § 256B.06, subd. 1(13) (1986) and Minn. Rules 9505.0060, subp. 4 (1987) list property that is exempt from consideration as an asset. Not only is a minor's settlement fund not listed as exempt property, none of the property that is listed is of a like kind. Exempt assets such as a homestead, a motor vehicle, and trade or business assets necessary to earn income do not share similar characteristics with the minor settlement fund. The absence of minors' settlement funds from the list of exempt assets suggests that they should be considered available. See McNiff v. Olmsted County Welfare Dep't, 287 Minn. 40, 176 N.W.2d 888 (1970). The regulations also list property which must be considered unavailable. Rule 9505.0061 (1987) gives examples of property that is not available, such as an unprobated estate, property owned jointly with another so as to prevent liquidation, and an asset frozen by a foreign government. Again, a minor's settlement is not listed. Although the list is not exclusive, the property listed shares no similarity with the minor's settlement fund. Even more telling is the directive in Rule 9505.0061 (1987) that the local agency must consider as available an asset that a person receives in a tort settlement, whether the settlement is entered into by the person or the person's guardian, that is structured to be paid over a period of time. Certainly, if a structured settlement is an available asset, a lump sum settlement should also be considered available. Furthermore, the rule does not purport to be limited to adults who receive an asset in a tort settlement. Together, the above provisions suggest that a minor's settlement fund should always be considered an available asset. Notwithstanding the above provisions, amicus curiae ARC suggests that a case-by-case analysis of each individual minor's settlement fund is necessary to determine its availability. ARC suggests that only the portion of a settlement fund intended to compensate the minor for future medical expenses should be considered available and that the remainder of the settlement, which was intended to make the minor whole, should not be considered available. See Baker v. Sterling, 39 N.Y.2d 397, 384 N.Y.S.2d 128, 348 N.E.2d 584 (1976). Although this approach has some appeal, we can find no indication that the legislature intended the availability of a minor's settlement fund to depend on the purpose for which it was received. In fact, Minn.Stat. § 256B.37 (Supp.1987) reflects an opposite legislative intent. Section 256B.37 provides that the state is subrogated to a medical assistance recipient's cause of action arising out of an occurrence necessitating the medical assistance. Id., subd. 1. The subrogation right extends to all portions of the cause of action, notwithstanding any settlement    or apportionment that purports to dispose of portions of the cause of action not subject to subrogation. Clearly, the purpose for which a tort settlement is received is irrelevant where a state's subrogation right is concerned. Although this provision is not directly applicable here, we find the legislative intent reflected in that provision clear and conclude that the availability of a minor's settlement fund does not depend on the purpose for which it was received. Minn. Rules 9505.0061 (1987) lends further support to this conclusion. That rule, as noted above, provides that a structured tort settlement is considered an available asset. It does not purport to exclude any portion of the settlement based on the type of damage for which the portion was supposed to compensate. If availability were to depend on the particular compensatory purpose of the settlement, then it seems to us that section 256B.37 and rule 9505.0061 would not contain such all-inclusive language. We decline, therefore, to adopt the position that a case-by-case analysis is necessary and conclude instead that a minor's settlement fund is always an available asset for medical assistance eligibility purposes. [7]