Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

GAGE v. THE NEW YORK STATE DEPARTMENT OF HEALTH

May 29, 2002

JOAN GAGE AND KAREN JURUTKA, AS GUARDIANS OF THE PERSON AND PROPERTY OF WILLIAM J. OSIKA AND MADELINE OSIKA, PLAINTIFFS,
V.
THE NEW YORK STATE DEPARTMENT OF HEALTH; AND ANTONIA C. NOVELLO, M.D., AS COMMISSIONER OF THE NEW YORK STATE DEPARTMENT OF HEALTH, DEFENDANTS.



The opinion of the court was delivered by: David N. Hurd, United States District Judge.

MEMORANDUM-DECISION AND ORDER

I. INTRODUCTION

Defendants now move to dismiss the complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). Plaintiffs oppose. Oral argument was heard on October 26, 2001, in Albany, New York. Decision was reserved.

II. FACTS

The facts relevant to a determination of the instant motion are stated briefly below.

Plaintiffs are the personal representatives of two nursing home patients, William and Madeline Osika. On the advice of counsel, plaintiffs transferred $22,000 out of the Osikas' assets. Based on this transfer, the state defendants imposed a penalty period of 1.545 months against the Osikas, during which they were ineligible to receive long-term health benefits under Medicaid. Pursuant to New York State Administrative Directive No. 96 ADM-8 ("ADM-8"), this penalty was assessed from the first day of the month following the month of the transfer. Plaintiffs contend that calculating the penalty period from the month following the transfer, as required by ADM-8, violates federal law.*fn1

Title 42 U.S.C. § 1396p(c)(1)(D) provides that, "The date specified in this subparagraph is the first day of the month during or after which assets have been transferred for less than fair market value and which does not occur in any periods of ineligibility under this subsection." (Emphasis added.) This language was adopted as part of the Omnibus Budget Reconciliation Act of 1993 ("OBRA `93"), 42 U.S.C. § 1396p. Prior to 1993, the period of ineligibility commenced "with the month in which such resources were transferred." Defendants contend that the amendment granted states the option of selecting either month as the beginning of the penalty period. Plaintiffs contend that the amendment was intended only to clarify the date to be applied in the case of multiple transfers of such resources.

As a result of defendants' adoption of the month following the transfer as the start of the penalty period, plaintiffs contend that defendants violated their rights to (1) due process because Congress' preempted the field of Medicaid regulation and ADM-8 imposes a different penalty period than that applicable under federal law; and (2) equal protection because New York residents are treated differently than Medicaid recipients who are residents of other states.

III. STANDARD OF REVIEW

A. 12(b)(6) Motion To Dismiss

In deciding a Rule 12(b)(6) motion, a court "must accept the allegations contained in the complaint as true, and draw all reasonable inferences in favor of the non-movant; it should not dismiss the complaint `unless it appears beyond a reasonable doubt that the plaintiff[s] can prove no set of facts in support of [their] claim which would entitle [them] to relief.'" Sheppard v. Beerman, 18 F.3d 147, 150 (2d Cir. 1994) (quoting Conley v. Gibson, 355 U.S. 41, 45-46 (1957)); see also Kaluczky v. City of White Plains, 57 F.3d 202, 206 (2d Cir. 1995). However, conclusory allegations that merely state the general legal conclusions necessary to prevail on the merits and are unsupported by factual averments will not be accepted as true. See, e.g., Clapp v. Greene, 743 F. Supp. 273, 276 (S.D.N.Y. 1990); Albert v. Carovano, 851 F.2d 561, 572 (2d Cir. 1988).

IV. DISCUSSION

Defendants raise several arguments in support of their motion to dismiss. Each of ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.