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INNOVATION DESCRIPTION

Program Name : New Hampshire Legal Assistance

Address : 1361 Elm Street, Suite 307
                Manchester, NH 03101

Phone : (603) 668-2900 Ext. 5006 (Direct)
            (603) 625-1840 FAX

E-mail : NHLA@auth.net

Director : John E Tobin, Jr.

Contact Person : Ann N. Butenhof

Subject Area : Medicaid recovery

Title : DeFosses v. Shumway: Class action Lawsuit against State of NH - Favorable Settlement for Class

A. Problem: Describe the nature of the problem

NH had a policy and practice of filing liens against homes of surviving spouses of Medicaid recipients, and other owners of real property, after death of Medicaid recipient; of demanding payment as precondition of releasing lien; and of seeking full recovery from estate surviving spouse.

B. Innovation: What effort entailed, cost, time, etc.

Class action law suit against State of NH. Very time intensive; not very costly otherwise. Extensive use of pro bono private bar contribution with respect to research projects and litigation support.

C. Result: What changes have occurred?

This case settled extremely favorably.

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(1) No more post-mortem liens if living spouse or other owner of real estate

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(2) No more life time recovery from spouses

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(3) NH will adopt undue hardship waiver provisions

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(4) No more claims against estates of surviving spouses

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AND (5) Full reimbursement to class members, with interest, back to June 1, 1992 
(all others retain right to go to state court to pursue state law taking claim).

D. Replication: Is this innovation replicable in other civil legal services?

This should serve as encouragement to other legal services programs to attach unlawful Medicaid recovery practices.

E. Materials Available: Written work product

Materials available see next page.

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(1) Complaint

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(2) Settlement Agreement (approved by US District Court 9/14/99)

 


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