﻿WEBVTT

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<v ->SJC-13439 in the matter of Francis R. Mason.</v>

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<v ->Okay, Attorney Fimognari.</v>

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<v ->Thank you, Chief Justice Budd,</v>

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and may it please the court.

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Good morning, Your Honors.

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Assistant Attorney General Christine Fimognari

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on behalf of the appellant,

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the Massachusetts Executive Office

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of Health and Human Services, MassHealth.

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MassHealth asked the court to reverse the decision

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of the probate court below and find the following.

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First, that a lien imposed by MassHealth

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on the real property of a MassHealth beneficiary

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does not automatically expire upon that beneficiary's staff.

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And second, that the Massachusetts Uniform Probate Code,

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or MUPC's three-year ultimate time limit

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does not apply retroactively to bar a claim

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brought against the estate of an individual

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who died prior to the MUPC's effective date.

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Beginning with the first issue,

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the Probate Court erred in its interpretation

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when it concluded that the lien expires upon death.

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And in its interpretation,

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the probate court failed to consider

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the ordinary way in which statutory liens operate.

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<v ->Isn't the purpose of it,</v>

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it has a specific purpose,

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that you put this lien on in case the house is sold

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while the person is in the facility, right?

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So, it serves a distinct purpose, right?

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<v ->That's one purpose of the lien, Your Honor, yes.</v>

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Another purpose-

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<v ->Go ahead.</v>
<v ->I'm sorry, Your Honor.</v>

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Another purpose of the lien is to secure the right

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of MassHealth to recover after the individual's death.

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<v ->But they have the right to recover</v>

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after the individual's death through the estate,

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and they don't need to file a lien, right?

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They can collect the amount owed.

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And there are all kinds of very specific rules about

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when you can do it,

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if there's someone living in the house,

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the order of priority.

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It's just a very detailed process about

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what happens when you're dead,

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as opposed to basically making sure

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the major asset, which is the house,

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is not sold while the person's in the facility, right?

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Seems like there are two separate ways of going about this.

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<v ->Yes, Your Honor, that's absolutely correct.</v>

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There are two separate mechanisms for recovery

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that Congress has allowed states to pursue,

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and one is a state recovery, as you laid out,

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and the other is liens.

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<v ->But if you do what you want,</v>

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aren't you basically,

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the word collapsing keeps coming up every argument,

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so collapsing the distinction, right?

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And you're creating a lien that goes on,

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particularly before 2013, for 50 years,

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which will completely bollocks up the probate process.

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<v ->No, Your Honor,</v>

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we're not collapsing the two mechanisms for recovery,

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because there are instances in which MassHealth

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cannot recover through

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the estate recovery process.
<v ->Why not?</v>

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That I can't figure out.

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Why can't you always recover

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through the estate process if you pay attention?

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<v ->Certainly, Your Honor.</v>

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So there are situations in which

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heirs of an estate will be incentivized

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not to probate an estate

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and just wait out the three-year statute of limitations.

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<v ->Aren't you notified when the person dies?</v>

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Aren't you...

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You've been paying for them in that facility.

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Don't you get a notice saying,

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"She died or he died?"

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<v ->Not always, Your Honor.</v>

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<v ->[Justice Wendlandt] You just keep paying?</v>

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<v ->No, Your Honor,</v>

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but there's different situations

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in which MassHealth may stop paying.

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It could be that the individual

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has been discharged from the institution and returned home.

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<v ->But you're saying Mass Health doesn't know</v>

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when somebody dies?

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<v ->Not always, Your Honor.</v>

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They do their best-
<v ->Okay, but let's just say</v>

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in this case, did you know when the decedent died?

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<v ->MassHealth knew when the decedent probate</v>

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was entered pursuant to

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the notice that's required.
<v ->So nine years</v>

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after her death you knew that she died?

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<v ->Yes, Your Honor.</v>
<v ->Before then,</v>

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you were continuing to pay for her nursing care?

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<v ->Not continuing to pay for her nursing care,</v>

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Your Honor.
<v ->You thought she</v>

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was back home.

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<v ->I'm not sure exactly what if it...</v>

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There's 2.3 million people in MassHealth, Your Honor,

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so MassHealth.
<v ->Right, so I would think</v>

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it would be a big deal for MassHealth to know

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when to stop paying.

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<v ->Yes, Your Honor and MassHealth does its best</v>

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to keep track of this,

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but there are also instances

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where MassHealth receives notice

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and still does not engage in the estate recovery process.

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And the reason for that is because

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if probate is not initiated,

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then MassHealth has the option, after one year,

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to appoint a public administrator to probate the estate.

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But MassHealth, as a policy matter,

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will not appoint the public administrator

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if there is another individual living in the home.

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Because as a policy matter,

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MassHealth doesn't wanna force

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the individual who's living in the home out of the house.

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<v ->Well, they can't right?</v>
<v ->They can't, right.</v>

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Yeah, by statute, they have to...

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They can't do that.

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<v ->Yes, they can, Your Honor.</v>

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What would happen is they would

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appoint the public administrator,

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the public administrator's required by law

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to resolve the estate,

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and if the home is the primary asset

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that's needed to resolve the estate, excuse me,

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the claims against the estate,

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then it would be sold, and that would be used

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to pay the creditors.
<v ->But I thought there's a rule</v>

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that if there's like a surviving spouse

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or somebody in the home,

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you can't exercise the lien on that.

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<v ->Yes, Your Honor, that is correct.</v>

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31B provides that if there's a surviving spouse,

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a child under the age of 21, or a blind or disabled child,

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that recovery cannot occur.

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But I'm talking about when there's another individual

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living in the house who's not protected from recovery.

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If it was forced to go to the estate recovery process,

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MassHealth would be forced to

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push that individual outta the house.

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And as a policy matter, they choose not to,

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and they can continue to protect their interests

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through the lien process.

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Additionally, Your Honor, in the instances

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that you were referencing where there

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is a protected individual in the house,

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MassHealth often does not appoint a public administrator,

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because the public administrator,

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it would be very inefficient for them to be appointed

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and then to only have a claim that's deferred

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until that individual dies or the property is sold.

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So those are two instances in which MassHealth,

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as a practical matter,

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uses the lien to secure their rights to recover.

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<v ->But can't they protect themselves in the probate process</v>

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without the TEFRA lien being in place?

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I mean, I get it.

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All of us are paying for this person to be taken care of.

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Our tax dollars are paying.

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You should be able to recover that.

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I completely get that.

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But I also (chuckling)

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don't see why the ordinary probate process

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doesn't protect you.

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And also it just seems like you're,

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by collapsing those two processes,

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you're creating all kinds of confusion,

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and the idea that you can do this for 50 years.

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So, everything's going hunky dory before two...

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A lot of people have wills and things from 2013,

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they're in these homes,

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so everything, you guys can do whatever you want

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for the next 50 years in those cases?

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<v ->If the individual died before the effective date.</v>

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<v ->Doesn't that seem crazy to you?</v>

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<v ->No, Your Honor, because the legislature provided</v>

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that period of limitations,

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and so it's what the legislature thought was appropriate.

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But additionally, Your Honor, another-

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<v ->Which period of limitations, the 50?</v>

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<v ->Yes, Your Honor, that was the line placed before 2012</v>

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with the-
<v ->Well, let me ask you</v>

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about MassHealth's own manual,

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which I think one of the judges below relied on

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in interpreting the lien as expiring after,

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upon the death of the beneficiary and/or the family members.

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<v ->Yes, Your Honor, so I believe you're referring to</v>

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the State Medicaid Manual's reference to-

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<v ->Yeah, which says, "Recoveries must be made</v>

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"from the individual's estate after death

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"or from the proceeds of the sale of the property

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"on which the lien has been placed."

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<v ->Yes, Your Honor, and-</v>
<v ->Isn't that a clear statement</v>

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of interpreting the language that you want us to interpret

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a different way, consistent with the way the judge here,

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Judge Ordonez, interpreted it?

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<v ->Because it requires too many inferences, Your Honor.</v>

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The ordinary rule for statutory liens such as this,

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is that they only expire upon a condition

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that is explicitly set out in the authorizing statute.

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Here, section 34 of Chapter 118E is the authorizing statute

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for MassHealth to impose these liens.

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That section provides that MassHealth

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is permitted to impose liens

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which are allowed by the Federal Secretary.

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Those liens are laid out in Section 42 USC 1396p.

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That federal section only provides one condition

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upon which these liens dissolve,

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and that's discharge from the institution and return home.

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If-
<v ->Well, don't those provisions</v>

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refer to during the life of?

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Or they have this language that's cross-referencing

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the person being alive, right?

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<v ->No, Your Honor, the federal statute 42 USC 1396p</v>

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just says that you can impose the lien,

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and the only condition upon which the lien dissolves

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is if the individual returns home.

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The reference to an individual's-

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<v ->It doesn't say only.</v>

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<v ->No, Your Honor, it says unless.</v>

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<v ->Well, it says it shall dissolve</v>

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when the person returns home.

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<v ->That's correct.</v>
<v ->Okay.</v>

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So there may be other situations where the lien dissolves.

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<v ->Yes, Your Honor.</v>
<v ->It's just</v>

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that this is the one that's listed,

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and I guess your argument is having listed this one,

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silence as to the others means that those other ways

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of dissolving the lien does not exist.

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<v ->Yes, Your Honor.</v>

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Because you would have to read a condition

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into the statute that's not there.

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<v ->Does any-</v>
<v ->Well, you're</v>

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reading an only.

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I'm just, you know...

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So, shame on you (laughing) but,

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I take your argument meaning that the silence

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as to the other dissolution mechanisms

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means that this is the only one.

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<v ->Yes, Your Honor and-</v>

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<v ->Does either,</v>

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any of the federal or state statutes

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say that TEFRA liens survive death?

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'Cause that's...

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You would think that...

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'Cause we've got various precise limitations on recovery.

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Does anything ever say it survives death?

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<v ->No, Your Honor,</v>

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but you wouldn't expect it to say that it survives death,

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because the ordinary way that real estate

256
00:11:31.050 --> 00:11:32.730
and statutory liens operate,

257
00:11:32.730 --> 00:11:34.470
as outlined in real estate treatises

258
00:11:34.470 --> 00:11:36.450
and recognized by the Supreme Court,

259
00:11:36.450 --> 00:11:39.690
is that they continue until they're paid,

260
00:11:39.690 --> 00:11:42.510
discharged, or a condition occurs.

261
00:11:42.510 --> 00:11:45.660
And that's because the interest attaches to the property.

262
00:11:45.660 --> 00:11:47.400
It's not attached to the individual.

263
00:11:47.400 --> 00:11:48.930
It's attached to the property.

264
00:11:48.930 --> 00:11:51.720
So the death ordinarily does not affect a lien.

265
00:11:51.720 --> 00:11:55.320
<v ->But you don't also have a separate way of recovering.</v>

266
00:11:55.320 --> 00:11:59.640
Here we have a pre-death and a post-death way of recovering.

267
00:11:59.640 --> 00:12:02.523
So I understand normal liens,

268
00:12:03.660 --> 00:12:05.910
that's how you wanna preserve your rights,

269
00:12:05.910 --> 00:12:08.100
but here you have a whole separate way of

270
00:12:08.100 --> 00:12:11.760
protecting with all kinds of particular rules, right?

271
00:12:11.760 --> 00:12:14.970
<v ->Yes, Your Honor, but we know that the federal government,</v>

272
00:12:14.970 --> 00:12:18.000
Congress, when it enacted the law

273
00:12:18.000 --> 00:12:21.570
to allow states to recover under these TEFRA liens,

274
00:12:21.570 --> 00:12:25.470
did not intend to limit it to just pre-death recovery,

275
00:12:25.470 --> 00:12:26.880
because we know that other states

276
00:12:26.880 --> 00:12:28.803
engage in post-death recovery.

277
00:12:29.670 --> 00:12:31.530
<v ->Although the Feds have written a guidance</v>

278
00:12:31.530 --> 00:12:33.753
saying that we do the exact opposite.

279
00:12:34.710 --> 00:12:35.880
We we don't do that.

280
00:12:35.880 --> 00:12:37.470
We have...

281
00:12:37.470 --> 00:12:41.730
Right, you've got that policy brief from DD, whatever the-

282
00:12:41.730 --> 00:12:42.563
<v ->Yes, Your Honor,</v>

283
00:12:42.563 --> 00:12:45.270
I believe you're referring to policy brief number five.

284
00:12:45.270 --> 00:12:47.490
We would argue that that policy brief

285
00:12:47.490 --> 00:12:49.620
is a federal interpretation of state law

286
00:12:49.620 --> 00:12:51.810
with no citations to any authority,

287
00:12:51.810 --> 00:12:54.300
and so it should not be found to have

288
00:12:54.300 --> 00:12:55.890
any persuasive value here.

289
00:12:55.890 --> 00:12:59.760
It's contrary to MassHealth's interpretation of the law.

290
00:12:59.760 --> 00:13:02.430
<v ->But certainly not contrary to the way MassHealth's,</v>

291
00:13:02.430 --> 00:13:04.713
in its manual, used to describe it.

292
00:13:06.030 --> 00:13:07.080
<v ->I believe it is, Your Honor,</v>

293
00:13:07.080 --> 00:13:10.140
because MassHealth's manual just says

294
00:13:10.140 --> 00:13:11.790
the estate after death.

295
00:13:11.790 --> 00:13:14.640
It doesn't indicate that the recovery from the lien

296
00:13:14.640 --> 00:13:16.920
is limited to an individual's life.

297
00:13:16.920 --> 00:13:19.320
There's no such express statement of that,

298
00:13:19.320 --> 00:13:21.120
and you would have to infer

299
00:13:21.120 --> 00:13:24.390
that the use of the term after death in estate

300
00:13:24.390 --> 00:13:27.150
would be meant to limit the lien recovery

301
00:13:27.150 --> 00:13:28.560
that's also referenced.

302
00:13:28.560 --> 00:13:31.500
I don't believe that that's the best interpretation

303
00:13:31.500 --> 00:13:32.760
of the language, Your Honor.

304
00:13:32.760 --> 00:13:34.560
But even if it were,

305
00:13:34.560 --> 00:13:37.110
the court should not rely on that language,

306
00:13:37.110 --> 00:13:39.660
which only has persuasive authority.

307
00:13:39.660 --> 00:13:42.390
They should look to the text of Section 31D,

308
00:13:42.390 --> 00:13:44.620
which provides that

309
00:13:45.870 --> 00:13:47.730
the division is also authorized

310
00:13:47.730 --> 00:13:49.350
during an individual's lifetime

311
00:13:49.350 --> 00:13:52.320
to recover all assistance correctly provided

312
00:13:52.320 --> 00:13:55.020
on or after April 1st, 1995,

313
00:13:55.020 --> 00:13:59.250
a property against which the division has a lien is sold.

314
00:13:59.250 --> 00:14:01.680
But the language at the probate court,

315
00:14:01.680 --> 00:14:04.350
and no other court which has considered this,

316
00:14:04.350 --> 00:14:07.860
this issue in section 31D is at the end of the section.

317
00:14:07.860 --> 00:14:11.197
It says, "This subsection shall not limit

318
00:14:11.197 --> 00:14:13.087
"the division's ability to recover

319
00:14:13.087 --> 00:14:16.477
"from the individual's estate under subsection A or B,

320
00:14:16.477 --> 00:14:21.060
"or as otherwise provided under any general or special law."

321
00:14:21.060 --> 00:14:23.730
So the probate court below read a section,

322
00:14:23.730 --> 00:14:25.800
which says that you are also authorized

323
00:14:25.800 --> 00:14:28.320
during an individual's lifetime to recover.

324
00:14:28.320 --> 00:14:33.320
They read that to mean that the lien expires upon death,

325
00:14:34.020 --> 00:14:36.180
even though there's an express statement

326
00:14:36.180 --> 00:14:39.660
that it's not supposed to limit other recovery provided

327
00:14:39.660 --> 00:14:42.840
under other laws, such as section 34.

328
00:14:42.840 --> 00:14:46.290
So Your Honor, the probate court read out that section,

329
00:14:46.290 --> 00:14:49.560
and it also ignored some other statutory sections

330
00:14:49.560 --> 00:14:53.910
such as Chapter 118E section 32J.

331
00:14:53.910 --> 00:14:57.420
That section was enacted at the same time as 31D,

332
00:14:57.420 --> 00:15:01.590
and it provides that a personal representative

333
00:15:01.590 --> 00:15:05.710
can discharge a lien against the estate

334
00:15:07.230 --> 00:15:08.610
through certain mechanisms.

335
00:15:08.610 --> 00:15:12.030
I see my time has expired.
<v ->Ask you, I'm sorry.</v>

336
00:15:12.030 --> 00:15:13.680
Chief, can I ask one more question?

337
00:15:13.680 --> 00:15:15.150
There is a second part to your argument

338
00:15:15.150 --> 00:15:16.350
that you haven't yet gotten to.

339
00:15:16.350 --> 00:15:17.250
Can I ask you?
<v ->Yes, Your Honor.</v>

340
00:15:17.250 --> 00:15:21.810
<v ->Why Judge Ordonez's interpretation of that statute</v>

341
00:15:21.810 --> 00:15:26.103
of repose applying to claims against the estate is wrong.

342
00:15:27.420 --> 00:15:30.540
I don't really quite understand your argument.

343
00:15:30.540 --> 00:15:31.840
You're just saying that...

344
00:15:33.120 --> 00:15:35.730
Kendall was about a date of death that happened

345
00:15:35.730 --> 00:15:40.730
after the MUPC was already in place, and our,

346
00:15:41.130 --> 00:15:43.080
excuse me, beneficiary died before then.

347
00:15:43.080 --> 00:15:46.020
And so we're under the old regime of 50 years.

348
00:15:46.020 --> 00:15:48.090
<v ->Yes, Your Honor, as this court has recognized,</v>

349
00:15:48.090 --> 00:15:51.720
the ordinary approach is that

350
00:15:51.720 --> 00:15:54.180
where there is no express legislative directive,

351
00:15:54.180 --> 00:15:56.370
the court applies the rule of interpretation

352
00:15:56.370 --> 00:16:00.060
that statutes operate prospectively, not retroactively,

353
00:16:00.060 --> 00:16:01.590
but additionally, Your Honors,

354
00:16:01.590 --> 00:16:05.190
the session laws which enacted the MUPC here

355
00:16:05.190 --> 00:16:08.347
expressly provide that "if a right is acquired,

356
00:16:08.347 --> 00:16:11.107
"extinguished, or barred upon the expiration

357
00:16:11.107 --> 00:16:14.017
"of a prescribed period that has commenced to run

358
00:16:14.017 --> 00:16:15.667
"under any other statute

359
00:16:15.667 --> 00:16:18.037
"before the effective date of this act,

360
00:16:18.037 --> 00:16:20.827
"that statute shall continue to apply to the right,

361
00:16:20.827 --> 00:16:22.950
"even if it has been superseded."

362
00:16:22.950 --> 00:16:27.950
So the right to recover under the pre-MUPC statute

363
00:16:28.140 --> 00:16:30.510
would be what's described in that section,

364
00:16:30.510 --> 00:16:32.700
and it's indicated that it's not.

365
00:16:32.700 --> 00:16:35.850
<v ->Is there an argument that only applies to trusts?</v>

366
00:16:35.850 --> 00:16:39.780
<v ->No, Your Honor, because that section refers to the act,</v>

367
00:16:39.780 --> 00:16:42.960
and the act that is at issue is an act

368
00:16:42.960 --> 00:16:47.730
that amended both the MUPC and the Uniform Trust Code.

369
00:16:47.730 --> 00:16:48.810
<v ->It doesn't...</v>

370
00:16:48.810 --> 00:16:50.280
The provision you're reading from

371
00:16:50.280 --> 00:16:52.350
just refers to trusts, right?

372
00:16:52.350 --> 00:16:53.183
<v ->No, Your Honor,</v>

373
00:16:53.183 --> 00:16:56.220
actually there's a part A and a part B of that provision.

374
00:16:56.220 --> 00:16:57.930
Part A refers to trusts,

375
00:16:57.930 --> 00:17:00.480
and Part B is the part that I'm referring to.

376
00:17:00.480 --> 00:17:03.960
<v ->But Part B also doesn't expressly refer to</v>

377
00:17:03.960 --> 00:17:06.690
the act you want it to refer to, right?

378
00:17:06.690 --> 00:17:09.960
It just uses the word acts, generally?

379
00:17:09.960 --> 00:17:12.300
<v ->Yes, Your Honor, it uses the general word act,</v>

380
00:17:12.300 --> 00:17:15.150
which we argue applies to the entire act,

381
00:17:15.150 --> 00:17:17.193
which includes the MUPC.

382
00:17:18.060 --> 00:17:21.870
<v ->Just going back to the first issue for just a second,</v>

383
00:17:21.870 --> 00:17:26.870
what is it that MassHealth loses if we interpret it the way

384
00:17:27.570 --> 00:17:30.330
your opposing counsel wants us to interpret?

385
00:17:30.330 --> 00:17:34.110
Given the fact that there is another way to get the money?

386
00:17:34.110 --> 00:17:35.970
<v ->Well, Your Honor, there were the examples</v>

387
00:17:35.970 --> 00:17:37.410
where a personal administrator,

388
00:17:37.410 --> 00:17:40.140
it's not practical or good as a policy matter

389
00:17:40.140 --> 00:17:44.100
to appoint one, which I addressed with Judge Justice Kafker.

390
00:17:44.100 --> 00:17:49.100
But additionally, MassHealth loses the security on

391
00:17:49.410 --> 00:17:51.450
its ability to recover post-death

392
00:17:51.450 --> 00:17:53.970
that it otherwise would have as a secured creditor.

393
00:17:53.970 --> 00:17:56.430
So if there's an instance where-

394
00:17:56.430 --> 00:17:57.940
<v ->Meaning if it falls asleep</v>

395
00:17:59.100 --> 00:18:02.970
and forgets to use the probate process for eight years,

396
00:18:02.970 --> 00:18:05.970
we can resurrect the lien, right?

397
00:18:05.970 --> 00:18:09.300
<v ->No, Your Honor, Section 32I</v>

398
00:18:09.300 --> 00:18:13.500
requires MassHealth to wait one year before it can,

399
00:18:13.500 --> 00:18:16.770
post-death, before it can appoint a public administrator.

400
00:18:16.770 --> 00:18:19.050
So during that one-year period,

401
00:18:19.050 --> 00:18:20.613
if the lien dissolves upon death,

402
00:18:20.613 --> 00:18:23.700
then MassHealth is not recognized as a creditor,

403
00:18:23.700 --> 00:18:25.410
and they're not being notified

404
00:18:25.410 --> 00:18:27.120
if the house goes into foreclosure

405
00:18:27.120 --> 00:18:29.700
because it's fallen behind on taxes,

406
00:18:29.700 --> 00:18:31.260
if there's a mortgage foreclosure,

407
00:18:31.260 --> 00:18:33.480
if there's a reverse mortgage foreclosure.

408
00:18:33.480 --> 00:18:36.090
MassHealth would lose its status as creditor

409
00:18:36.090 --> 00:18:38.400
during that one year.
<v ->Wait, I don't understand</v>

410
00:18:38.400 --> 00:18:40.620
why it would lose its status as creditor.

411
00:18:40.620 --> 00:18:44.310
Maybe it would lose a priority that the lien gives it,

412
00:18:44.310 --> 00:18:46.080
but why would it not be a creditor,

413
00:18:46.080 --> 00:18:48.750
having given the benefits to the decedent?

414
00:18:48.750 --> 00:18:52.380
<v ->Because, Your Honor, if the lien dissolves upon death,</v>

415
00:18:52.380 --> 00:18:56.670
MassHealth is not considered to be a creditor

416
00:18:56.670 --> 00:19:00.030
until it files its notice of claim in the probate court.

417
00:19:00.030 --> 00:19:02.400
We know this because if they don't file the notice of claim,

418
00:19:02.400 --> 00:19:03.570
they can't collect.

419
00:19:03.570 --> 00:19:08.433
They cannot file the notice of claim until probate begins.

420
00:19:10.334 --> 00:19:12.870
If an individual does not begin probate

421
00:19:12.870 --> 00:19:14.400
during that one-year period,

422
00:19:14.400 --> 00:19:16.890
MassHealth is prohibited

423
00:19:16.890 --> 00:19:18.660
from appointing a public administrator

424
00:19:18.660 --> 00:19:20.733
for a whole year after the death.

425
00:19:22.350 --> 00:19:26.820
<v ->But after that year, they're completely protected, right?</v>

426
00:19:26.820 --> 00:19:30.870
What could happen that would screw MassHealth

427
00:19:30.870 --> 00:19:32.880
out of the money during that year?

428
00:19:32.880 --> 00:19:34.590
I'm trying to understand that.

429
00:19:34.590 --> 00:19:35.423
<v ->Certainly, Your Honor.</v>

430
00:19:35.423 --> 00:19:37.140
It could be the case that the property

431
00:19:37.140 --> 00:19:40.800
is subject to tax liens

432
00:19:40.800 --> 00:19:45.570
that then are collected and the estate is foreclosed upon.

433
00:19:45.570 --> 00:19:48.000
And MassHealth not only doesn't have priority,

434
00:19:48.000 --> 00:19:50.280
sometimes they're not even noticed.

435
00:19:50.280 --> 00:19:52.560
It could also be something like a reverse mortgage

436
00:19:52.560 --> 00:19:53.820
that's collected upon.

437
00:19:53.820 --> 00:19:56.190
<v ->So, you've got...</v>

438
00:19:56.190 --> 00:20:00.810
Again, 'cause we'll ask your opposing counsel

439
00:20:00.810 --> 00:20:01.680
this very question.

440
00:20:01.680 --> 00:20:03.300
So what's gonna happen?

441
00:20:03.300 --> 00:20:06.630
So there's a tax foreclosure on that property

442
00:20:06.630 --> 00:20:10.200
and MassHealth would somehow lose out.

443
00:20:10.200 --> 00:20:11.040
Is that what you're saying?

444
00:20:11.040 --> 00:20:12.600
That there's that possibility?

445
00:20:12.600 --> 00:20:15.180
<v ->Yes, Your Honor, because if MassHealth is not,</v>

446
00:20:15.180 --> 00:20:18.720
if the lien is not in place, MassHealth is not a creditor,

447
00:20:18.720 --> 00:20:21.600
the tax foreclosure occurs, they're not notified,

448
00:20:21.600 --> 00:20:24.960
and the assets from the estate are distributed.

449
00:20:24.960 --> 00:20:26.940
The home assets are distributed.

450
00:20:26.940 --> 00:20:29.490
And so by the time it gets to a state recovery,

451
00:20:29.490 --> 00:20:32.440
there might be nothing left for MassHealth to collect upon.

452
00:20:33.930 --> 00:20:36.090
Thank you very much, Your Honor, as we ask you to reverse.

453
00:20:36.090 --> 00:20:36.993
<v ->Okay, thank you.</v>

454
00:20:38.730 --> 00:20:40.030
All right, Attorney Dupuy.

455
00:20:41.640 --> 00:20:42.840
<v ->And don't forget that one,</v>

456
00:20:42.840 --> 00:20:44.190
'cause I'd like the answer to that.

457
00:20:44.190 --> 00:20:45.030
<v ->Maybe you can start with that.</v>

458
00:20:45.030 --> 00:20:45.863
<v ->Yeah.</v>

459
00:20:51.600 --> 00:20:53.350
<v ->Good morning, Chief Justice Budd,</v>

460
00:20:54.210 --> 00:20:58.533
and other justices, Matthew Dupuy for the appellee.

461
00:21:01.710 --> 00:21:05.700
MassHealth does not have a problem during that one year.

462
00:21:05.700 --> 00:21:07.950
Think about what the situation is.

463
00:21:07.950 --> 00:21:11.490
The house is in the name of Francis Mason.

464
00:21:11.490 --> 00:21:13.080
It's in her name.

465
00:21:13.080 --> 00:21:13.913
Okay?

466
00:21:17.070 --> 00:21:20.260
The heirs can't do anything with it because

467
00:21:21.420 --> 00:21:23.880
it has to be probated.

468
00:21:23.880 --> 00:21:24.933
They can't sell it.

469
00:21:26.640 --> 00:21:28.440
She passed away.

470
00:21:28.440 --> 00:21:31.350
So if the property is in her estate,

471
00:21:31.350 --> 00:21:33.390
it's just gonna sit there.

472
00:21:33.390 --> 00:21:38.390
<v ->Well, she's saying the town of Newton</v>

473
00:21:39.000 --> 00:21:41.283
wants to foreclose on the house.

474
00:21:42.510 --> 00:21:47.510
Is that possible that they can foreclose

475
00:21:48.840 --> 00:21:53.010
without that lien that MassHealth is left holding the bag?

476
00:21:53.010 --> 00:21:55.440
Meaning you and me and the rest of us taxpayers

477
00:21:55.440 --> 00:21:56.370
are left holding the bag?

478
00:21:56.370 --> 00:21:58.533
Or how does that prevent it?

479
00:21:59.820 --> 00:22:02.490
<v ->First of all, we're talking real estate taxes,</v>

480
00:22:02.490 --> 00:22:05.280
whether it's five or even 10,000 a year,

481
00:22:05.280 --> 00:22:06.540
in a situation like this,

482
00:22:06.540 --> 00:22:09.390
the person has passed away in the nursing home.

483
00:22:09.390 --> 00:22:11.970
I don't know what the situation is with the real estate,

484
00:22:11.970 --> 00:22:12.803
but,

485
00:22:15.360 --> 00:22:19.440
it's not enough to come close to the value of the property.

486
00:22:19.440 --> 00:22:21.303
So MassHealth is not in danger.

487
00:22:26.070 --> 00:22:27.570
So they are protected.

488
00:22:27.570 --> 00:22:29.850
So MassHealth, that first year,

489
00:22:29.850 --> 00:22:34.850
can sit back and, if no one files an estate,

490
00:22:35.610 --> 00:22:37.833
then they can come in in month 13.

491
00:22:39.780 --> 00:22:41.610
They're totally protected.

492
00:22:41.610 --> 00:22:43.950
It's a red herring, my sister's argument.

493
00:22:43.950 --> 00:22:47.580
<v ->Can I ask you one thing that does bother me directly?</v>

494
00:22:47.580 --> 00:22:50.523
It's the language of 32.

495
00:22:52.980 --> 00:22:56.197
So they reference 32J,

496
00:22:58.110 --> 00:23:00.900
they reference the personal representative

497
00:23:00.900 --> 00:23:03.693
and they reference a lien.

498
00:23:04.890 --> 00:23:06.750
Is this just a drafting error?

499
00:23:06.750 --> 00:23:11.750
Why does 32J, if there's no liens allowed,

500
00:23:12.150 --> 00:23:14.643
if liens dissolve on death,

501
00:23:16.470 --> 00:23:19.290
what is 32J talking about?

502
00:23:19.290 --> 00:23:20.123
<v ->I don't know.</v>

503
00:23:20.123 --> 00:23:23.040
Is it referencing the MassHealth lien?

504
00:23:23.040 --> 00:23:25.110
Or is it referencing all liens?

505
00:23:25.110 --> 00:23:28.320
<v ->Well, it's referencing liens in general,</v>

506
00:23:28.320 --> 00:23:29.940
but I think it also makes a reference

507
00:23:29.940 --> 00:23:31.710
to MassHealth in that section.

508
00:23:31.710 --> 00:23:33.720
Do you have 32J handy?

509
00:23:33.720 --> 00:23:35.340
<v ->I...</v>

510
00:23:35.340 --> 00:23:37.413
Not real handy, Your Honor.
<v ->Okay.</v>

511
00:23:38.970 --> 00:23:40.590
<v Matthew>Sorry about that.</v>

512
00:23:40.590 --> 00:23:43.590
<v ->All right, I'll dig up the provision.</v>

513
00:23:43.590 --> 00:23:45.360
We can talk about it more expressly,

514
00:23:45.360 --> 00:23:50.100
but it seems like, to me, that if you're right,

515
00:23:50.100 --> 00:23:53.880
that all liens, these TEFRA liens are gone,

516
00:23:53.880 --> 00:23:58.880
there would be no discussion of liens in 32J

517
00:23:59.280 --> 00:24:03.363
and MassHealth in relation to those liens,

518
00:24:04.590 --> 00:24:08.460
rendering this sort of a drafting error, in your view.

519
00:24:08.460 --> 00:24:11.850
'Cause otherwise it would make sense

520
00:24:11.850 --> 00:24:13.410
to have the liens stay alive,

521
00:24:13.410 --> 00:24:15.610
'cause that would be what it's referring to.

522
00:24:17.280 --> 00:24:20.970
<v ->Well, the states have the option.</v>

523
00:24:20.970 --> 00:24:23.220
Mass has opted not to keep it alive.

524
00:24:23.220 --> 00:24:27.660
<v ->Well, 32J is a Massachusetts statute, right?</v>

525
00:24:27.660 --> 00:24:29.894
<v ->Well, but the MUPC,</v>

526
00:24:29.894 --> 00:24:31.650
it essentially overruled that,

527
00:24:31.650 --> 00:24:36.570
because they want it handled in the estate,

528
00:24:36.570 --> 00:24:38.430
and they want it handled within three years,

529
00:24:38.430 --> 00:24:40.440
and this court wants it handled within three years,

530
00:24:40.440 --> 00:24:42.480
which is the way it should be handled.

531
00:24:42.480 --> 00:24:43.470
<v ->Well, that's a separate...</v>

532
00:24:43.470 --> 00:24:44.850
Don't jump around yet,

533
00:24:44.850 --> 00:24:49.110
'cause we will get there, but I'm just trying to...

534
00:24:49.110 --> 00:24:51.120
It would be really helpful if you could give us

535
00:24:51.120 --> 00:24:53.190
an interpretation that makes sense of this,

536
00:24:53.190 --> 00:24:55.920
unless it's just a drafting error.

537
00:24:55.920 --> 00:24:58.170
If it's a drafting error, that's okay,

538
00:24:58.170 --> 00:25:02.613
but it just seems nonsensical to reference it.

539
00:25:04.050 --> 00:25:06.993
<v ->Yeah, I'm sorry, I can't answer that, Your Honor.</v>

540
00:25:08.427 --> 00:25:09.420
I would like to talk about-
<v ->Let me just</v>

541
00:25:09.420 --> 00:25:10.920
read it to you for a second.

542
00:25:10.920 --> 00:25:11.753
<v ->Sure, go ahead.</v>
<v ->"If the</v>

543
00:25:11.753 --> 00:25:13.657
"personal representative wishes to sell or transfer

544
00:25:13.657 --> 00:25:15.247
"any real property

545
00:25:15.247 --> 00:25:18.060
"against which the division has filed a lien."

546
00:25:18.060 --> 00:25:20.977
So again, the division has filed a lien or a claim.

547
00:25:20.977 --> 00:25:23.077
"Not yet enforceable,

548
00:25:23.077 --> 00:25:24.847
"because circumstances or conditions

549
00:25:24.847 --> 00:25:27.967
"specified in Section 31 continue to exist

550
00:25:27.967 --> 00:25:30.787
"the division shall release the lien or claim

551
00:25:30.787 --> 00:25:33.090
"if the personal representative agrees to blankety blank."

552
00:25:33.090 --> 00:25:38.090
But, isn't this all unnecessary if a lien,

553
00:25:38.670 --> 00:25:42.093
if MassHealth's lien automatically dissolved on death?

554
00:25:43.260 --> 00:25:45.300
<v ->Now I understand, Your Honor.</v>

555
00:25:45.300 --> 00:25:50.000
I don't know when that statute was enacted, but liens...

556
00:25:51.750 --> 00:25:54.960
In the real estate world, if there's a lien there,

557
00:25:54.960 --> 00:25:56.850
it's gonna have to be dealt with.

558
00:25:56.850 --> 00:26:00.840
And the dissolution of the lien is only-

559
00:26:00.840 --> 00:26:04.743
<v ->It's the division, in which the division has filed a lien.</v>

560
00:26:06.300 --> 00:26:08.465
<v ->Division of MassHealth.</v>
<v ->Yeah.</v>

561
00:26:08.465 --> 00:26:09.930
<v ->Right.</v>
<v ->So but you say</v>

562
00:26:09.930 --> 00:26:14.100
all liens of MassHealth dissolve on death.

563
00:26:14.100 --> 00:26:18.510
If that's the case, this makes no sense, right?

564
00:26:18.510 --> 00:26:22.383
<v ->Well, because my statement is 2023,</v>

565
00:26:23.640 --> 00:26:27.510
and it wasn't until 2012

566
00:26:27.510 --> 00:26:30.240
when we first started to look at this issue.

567
00:26:30.240 --> 00:26:33.210
And then, Kendall, we started to look at it more closely.

568
00:26:33.210 --> 00:26:35.700
So it's a difference of timing.

569
00:26:35.700 --> 00:26:39.663
But there are liens out there today, and there's no-

570
00:26:40.620 --> 00:26:45.180
<v ->But no, no, Kendall doesn't deal with TEFRA liens.</v>

571
00:26:45.180 --> 00:26:50.180
TEFRA liens have been around for a long, long time.

572
00:26:51.600 --> 00:26:53.760
I mean, I understand all of your argument,

573
00:26:53.760 --> 00:26:57.000
that the TEFRA liens are designed for the sale of the house

574
00:26:57.000 --> 00:26:59.550
while the person's in the institution,

575
00:26:59.550 --> 00:27:02.250
and there's a whole separate process

576
00:27:02.250 --> 00:27:06.600
to use the probate process and you don't need a lien there.

577
00:27:06.600 --> 00:27:11.600
My problem is that 32J kind of makes this mushy and messy,

578
00:27:11.760 --> 00:27:13.830
but you're not really helping me out of

579
00:27:13.830 --> 00:27:16.563
telling me what 32J is talkin' about yet.

580
00:27:18.420 --> 00:27:20.520
<v ->That's correct, Your Honor.</v>
<v ->Okay.</v>

581
00:27:20.520 --> 00:27:22.640
<v ->So on the...</v>

582
00:27:24.210 --> 00:27:26.883
On why the lien dissolves,

583
00:27:27.750 --> 00:27:30.750
we look at the Wells Fargo case,

584
00:27:30.750 --> 00:27:33.540
which talks about the federal statute

585
00:27:33.540 --> 00:27:36.020
and that it's primarily for...

586
00:27:38.430 --> 00:27:40.690
To resolve the situation if the person

587
00:27:43.380 --> 00:27:45.540
leaves the facility,

588
00:27:45.540 --> 00:27:49.560
and the lien is going to be discharged at that time,

589
00:27:49.560 --> 00:27:52.563
or the lien's gonna be paid off if the house is sold.

590
00:27:53.910 --> 00:27:56.340
And-
<v ->Again, all that makes,</v>

591
00:27:56.340 --> 00:27:59.610
I completely understand the pre-death process.

592
00:27:59.610 --> 00:28:02.070
You don't want people in these institutions

593
00:28:02.070 --> 00:28:03.510
and then the family selling the home

594
00:28:03.510 --> 00:28:07.170
and then the Commonwealth's left holding the bag.

595
00:28:07.170 --> 00:28:09.870
But, why don't you...

596
00:28:09.870 --> 00:28:13.300
Why couldn't the liens survive and

597
00:28:14.880 --> 00:28:16.440
have it just survive and then

598
00:28:16.440 --> 00:28:18.570
it goes into the probate process?

599
00:28:18.570 --> 00:28:21.780
<v ->It could, but Mass has elected not to do that.</v>

600
00:28:21.780 --> 00:28:23.190
And many states have,

601
00:28:23.190 --> 00:28:24.750
but Mass has made the choice

602
00:28:24.750 --> 00:28:26.820
that they'd rather have the estate deal with it.

603
00:28:26.820 --> 00:28:30.063
<v ->And what is the evidence of that statement?</v>

604
00:28:31.350 --> 00:28:33.300
<v ->It's the state-</v>
<v ->'Cause the property</v>

605
00:28:33.300 --> 00:28:35.310
goes into the estate, so-
<v ->Correct.</v>

606
00:28:35.310 --> 00:28:37.710
<v ->Having the lien attached to the property</v>

607
00:28:37.710 --> 00:28:38.880
going into the estate

608
00:28:38.880 --> 00:28:42.540
still requires MassHealth to go to the estate.

609
00:28:42.540 --> 00:28:46.530
I guess I don't understand your argument that the lien must,

610
00:28:46.530 --> 00:28:51.530
that Mass decided and chose not to have the lien

611
00:28:53.910 --> 00:28:57.000
continue after the beneficiary died.

612
00:28:57.000 --> 00:28:58.650
<v ->That's correct, and-</v>
<v ->But what is</v>

613
00:28:58.650 --> 00:28:59.490
the evidence of that?

614
00:28:59.490 --> 00:29:01.440
What are you relying on?

615
00:29:01.440 --> 00:29:03.660
<v ->Well, the federal statute,</v>

616
00:29:03.660 --> 00:29:04.740
which-
<v ->So that wouldn't tell me</v>

617
00:29:04.740 --> 00:29:06.960
what Massachusetts decided.
<v ->Okay.</v>

618
00:29:06.960 --> 00:29:11.960
The State Medicaid Manual states that it dissolves.

619
00:29:14.700 --> 00:29:16.890
<v ->Where does it say that?</v>
<v ->Where does it say that?</v>

620
00:29:16.890 --> 00:29:19.353
<v ->It's discussed in the Wells Fargo case.</v>

621
00:29:20.947 --> 00:29:22.020
<v ->[Justice Wendlandt] Okay.</v>

622
00:29:22.020 --> 00:29:24.800
<v ->Wells Fargo found that a plain text reading</v>

623
00:29:24.800 --> 00:29:28.800
of the statutory code properly dispose of the liens

624
00:29:28.800 --> 00:29:31.410
upon the death of a member.

625
00:29:31.410 --> 00:29:33.990
And further-
<v ->Which language</v>

626
00:29:33.990 --> 00:29:36.360
does it rely on to do that?

627
00:29:36.360 --> 00:29:40.830
<v ->It relies on, first it relied on the federal statute.</v>

628
00:29:40.830 --> 00:29:44.070
<v ->But the federal statute, I think you both agree,</v>

629
00:29:44.070 --> 00:29:45.000
under the federal statute,

630
00:29:45.000 --> 00:29:46.710
you could keep the liens alive, right?

631
00:29:46.710 --> 00:29:48.420
They don't preclude you from keeping alive.

632
00:29:48.420 --> 00:29:49.470
A lot of states do.

633
00:29:49.470 --> 00:29:52.631
We just don't, you argue?
<v ->Correct.</v>

634
00:29:52.631 --> 00:29:56.280
So the federal statute gives the option to the state,

635
00:29:56.280 --> 00:29:59.760
and then the State Medicaid Manual,

636
00:29:59.760 --> 00:30:04.760
their policy was to go by way of the estate recovery

637
00:30:04.890 --> 00:30:06.420
and not use the lien.
<v ->Can you tell us...</v>

638
00:30:06.420 --> 00:30:10.020
It would be useful if you tell us the provision

639
00:30:10.020 --> 00:30:12.810
in that Medicaid Manual, 'cause I'm not aware of it.

640
00:30:12.810 --> 00:30:16.830
I'm aware of the federal policy brief

641
00:30:16.830 --> 00:30:18.780
that says we don't do that.

642
00:30:18.780 --> 00:30:21.420
But I didn't know that we actually said it

643
00:30:21.420 --> 00:30:23.970
in a Medicaid Manual.

644
00:30:23.970 --> 00:30:26.430
<v ->It's not only in the State Medicaid Manual,</v>

645
00:30:26.430 --> 00:30:29.130
but it's been the MassHealth practice.

646
00:30:29.130 --> 00:30:32.160
And what's kind of ironic-
<v ->I know you answered</v>

647
00:30:32.160 --> 00:30:34.349
the first question before you move to practice.

648
00:30:34.349 --> 00:30:37.157
Where in the Medicaid Manual does it say that?

649
00:30:37.157 --> 00:30:39.753
'Cause that would be really useful for you.

650
00:30:41.820 --> 00:30:42.753
<v ->All right.</v>

651
00:30:51.030 --> 00:30:51.970
That would be

652
00:30:56.070 --> 00:30:58.770
in the Wells Fargo case.

653
00:30:58.770 --> 00:30:59.603
<v ->Yeah, but,</v>

654
00:31:00.600 --> 00:31:05.070
the Wells Fargo case may be just interpreting something.

655
00:31:05.070 --> 00:31:06.870
But again, I'll look for...

656
00:31:06.870 --> 00:31:09.180
You've attached the Wells Fargo case here,

657
00:31:09.180 --> 00:31:10.436
have you?
<v ->That's correct.</v>

658
00:31:10.436 --> 00:31:14.340
<v ->Okay, and,</v>

659
00:31:14.340 --> 00:31:17.343
is the Medicaid Manual attached somewhere in here?

660
00:31:18.450 --> 00:31:21.000
'Cause-
<v ->Yes, I believe so.</v>

661
00:31:21.000 --> 00:31:24.210
<v ->Okay, so it would be useful if...</v>

662
00:31:24.210 --> 00:31:27.420
I would ask the chief if we could have a 16L letter

663
00:31:27.420 --> 00:31:29.730
that references the particular provision

664
00:31:29.730 --> 00:31:32.820
in the Medicaid Manual that's supposedly in this record,

665
00:31:32.820 --> 00:31:35.130
so that we don't have to dig it up,

666
00:31:35.130 --> 00:31:36.430
that you're talking about.

667
00:31:38.760 --> 00:31:40.050
<v ->Sure.</v>
<v ->Sure.</v>

668
00:31:40.050 --> 00:31:40.883
<v ->Yep.</v>

669
00:31:46.500 --> 00:31:48.060
And what did you describe that as?

670
00:31:48.060 --> 00:31:48.893
A what?

671
00:31:49.800 --> 00:31:50.910
<v ->I'm just quoting you.</v>

672
00:31:50.910 --> 00:31:55.710
You said the Medicaid Manual says that,

673
00:31:57.060 --> 00:31:58.800
I guess that these things do not,

674
00:31:58.800 --> 00:32:02.070
that the TEFRA liens do not survive death.

675
00:32:02.070 --> 00:32:02.970
That would be a...

676
00:32:02.970 --> 00:32:05.400
I know that the federal policy brief

677
00:32:05.400 --> 00:32:07.770
says that exact same thing,

678
00:32:07.770 --> 00:32:10.563
but your sister just argued that that's wrong.

679
00:32:12.060 --> 00:32:14.100
But if the State Medicaid Manual

680
00:32:14.100 --> 00:32:17.430
says exactly what the federal policy brief says,

681
00:32:17.430 --> 00:32:19.980
that's a very helpful piece for you,

682
00:32:19.980 --> 00:32:23.760
and I would like to look at it, and I haven't seen it.

683
00:32:23.760 --> 00:32:26.100
<v ->Okay, do you want me to do that now, Your Honor?</v>

684
00:32:26.100 --> 00:32:27.480
Or you want me to-
<v ->No, no, no.</v>

685
00:32:27.480 --> 00:32:29.520
16L, afterwards.
<v ->Afterwards.</v>

686
00:32:29.520 --> 00:32:31.650
<v ->16?</v>
<v ->It's called a 16L letter.</v>

687
00:32:31.650 --> 00:32:32.820
You send us a letter

688
00:32:32.820 --> 00:32:34.680
after or.
<v ->Yes, mm-hm.</v>

689
00:32:34.680 --> 00:32:35.880
Be happy to, Your Honor.

690
00:32:37.740 --> 00:32:41.913
So, the Wells Fargo case,

691
00:32:43.827 --> 00:32:46.200
they follow the federal statute,

692
00:32:46.200 --> 00:32:50.040
State Medicaid Manual, and it also talks about

693
00:32:50.040 --> 00:32:52.320
the MassHealth practice.

694
00:32:52.320 --> 00:32:56.743
And then Chapter 118 section 34 is,

695
00:33:01.590 --> 00:33:02.913
that's also relevant,

696
00:33:06.120 --> 00:33:07.900
in that it discusses

697
00:33:09.967 --> 00:33:13.267
"The division is authorized during an individual's lifetime

698
00:33:13.267 --> 00:33:16.627
"to recover all assistance correctly provided.

699
00:33:16.627 --> 00:33:18.397
"If the property against which the division

700
00:33:18.397 --> 00:33:22.710
"has a lien or a conference under section 34 is sold."

701
00:33:22.710 --> 00:33:24.873
There's no mention that it survives death.

702
00:33:27.180 --> 00:33:31.860
The second issue-

703
00:33:31.860 --> 00:33:34.380
<v ->But it seems, again, it seems ambiguous, right?</v>

704
00:33:34.380 --> 00:33:37.050
It doesn't say it survives death,

705
00:33:37.050 --> 00:33:39.270
nor does it say it does not survive death.

706
00:33:39.270 --> 00:33:40.280
It's kind of...

707
00:33:41.250 --> 00:33:43.710
We have to figure that out ourselves, right?

708
00:33:43.710 --> 00:33:44.760
<v ->That's correct.</v>

709
00:33:44.760 --> 00:33:47.640
<v ->Right, and so I guess my question for you,</v>

710
00:33:47.640 --> 00:33:49.200
following on the heels of that is,

711
00:33:49.200 --> 00:33:54.090
given that the default is liens usually follow property.

712
00:33:54.090 --> 00:33:55.350
They don't dissolve.

713
00:33:55.350 --> 00:33:57.420
They're not in personam, right?

714
00:33:57.420 --> 00:33:58.710
They're in rem.

715
00:33:58.710 --> 00:34:01.170
Why, given that default,

716
00:34:01.170 --> 00:34:05.670
would we read section 34 to expire,

717
00:34:05.670 --> 00:34:07.950
to require the lien to expire

718
00:34:07.950 --> 00:34:10.980
upon the death of the beneficiary?

719
00:34:10.980 --> 00:34:13.110
<v ->Because the way Mass handles it.</v>

720
00:34:13.110 --> 00:34:15.273
The second the person dies,

721
00:34:16.290 --> 00:34:17.703
now we have an estate,

722
00:34:18.690 --> 00:34:21.387
and that's where the estate provisions come in,

723
00:34:21.387 --> 00:34:23.280
and MassHealth is protected.

724
00:34:23.280 --> 00:34:26.850
And that's the way that this state chooses to do it.

725
00:34:26.850 --> 00:34:27.810
And it's interesting

726
00:34:27.810 --> 00:34:29.760
that my sister.
<v ->Are you saying that</v>

727
00:34:29.760 --> 00:34:34.760
allowing MassHealth to continue to have a lien

728
00:34:35.280 --> 00:34:38.400
on property that's now part of the estate,

729
00:34:38.400 --> 00:34:41.250
would somehow, I don't...

730
00:34:41.250 --> 00:34:42.390
Finish my sentence.

731
00:34:42.390 --> 00:34:44.295
What are you saying?

732
00:34:44.295 --> 00:34:47.220
Couldn't the property go to the estate?

733
00:34:47.220 --> 00:34:50.160
MassHealth continues to have a lien on it,

734
00:34:50.160 --> 00:34:51.990
so that when the property is sold

735
00:34:51.990 --> 00:34:55.500
as part of the distribution of assets of the estate,

736
00:34:55.500 --> 00:34:58.833
MassHealth has priority because of the lien.

737
00:35:00.600 --> 00:35:02.430
<v ->Well, they wouldn't have priority,</v>

738
00:35:02.430 --> 00:35:05.160
based upon the statutory,

739
00:35:05.160 --> 00:35:07.353
the seven or eight enumerated items,

740
00:35:08.610 --> 00:35:12.690
post-death expenses, burial.

741
00:35:12.690 --> 00:35:14.640
<v ->But couldn't they-</v>
<v ->They could live</v>

742
00:35:14.640 --> 00:35:15.927
in the same universe.
<v ->Right.</v>

743
00:35:15.927 --> 00:35:18.600
<v ->You could still have a lien in a probate.</v>

744
00:35:18.600 --> 00:35:20.019
<v ->Yes, they could.
Right?</v>

745
00:35:20.019 --> 00:35:21.150
<v ->It still could have a lien.</v>
<v ->And it could</v>

746
00:35:21.150 --> 00:35:24.180
follow the statute and be the fifth one in priority.

747
00:35:24.180 --> 00:35:25.650
<v ->Right.</v>

748
00:35:25.650 --> 00:35:26.910
<v ->Right?</v>
<v ->I don't know if they,</v>

749
00:35:26.910 --> 00:35:27.900
it'd be the fifth one.

750
00:35:27.900 --> 00:35:29.820
It might be further down the line.

751
00:35:29.820 --> 00:35:31.195
<v ->But regardless-</v>
<v ->Right.</v>

752
00:35:31.195 --> 00:35:32.028
<v ->[Justice Wendlandt] It's up there.</v>

753
00:35:32.028 --> 00:35:32.861
<v ->Correct.</v>

754
00:35:32.861 --> 00:35:36.900
But there's no need...

755
00:35:36.900 --> 00:35:41.163
When the legislature made the statute,

756
00:35:42.210 --> 00:35:43.100
and when they...

757
00:35:45.397 --> 00:35:46.980
And then the federal statute which gave them

758
00:35:46.980 --> 00:35:48.480
the authority to do what they can do,

759
00:35:48.480 --> 00:35:50.613
and they have to be compliant with that,

760
00:35:52.126 --> 00:35:55.490
and then they have the situation where the...

761
00:35:58.080 --> 00:35:59.750
They want the...

762
00:36:03.660 --> 00:36:05.550
They want their fiduciary to handle it.

763
00:36:05.550 --> 00:36:07.620
They want the personal rep.

764
00:36:07.620 --> 00:36:10.810
And it's somewhat

765
00:36:12.450 --> 00:36:15.000
ironic, if you will, that my sister was,

766
00:36:15.000 --> 00:36:20.000
MassHealth has this reluctance to evict someone.

767
00:36:20.760 --> 00:36:21.593
Well,

768
00:36:25.260 --> 00:36:27.240
they don't have to evict someone.

769
00:36:27.240 --> 00:36:28.950
They can reach an agreement with a person

770
00:36:28.950 --> 00:36:31.264
staying in the home that,

771
00:36:31.264 --> 00:36:32.850
all right, you can pay us in three or four years.

772
00:36:32.850 --> 00:36:36.190
They can essentially draft a new contract

773
00:36:37.110 --> 00:36:39.753
in a new lien, if they want to.

774
00:36:40.680 --> 00:36:43.920
So it's ironic that they're arguing

775
00:36:43.920 --> 00:36:45.750
that their lien is still there,

776
00:36:45.750 --> 00:36:48.210
and yet they don't wanna use it.

777
00:36:48.210 --> 00:36:50.360
So I don't...

778
00:36:51.540 --> 00:36:54.873
So MassHealth is basically protected.

779
00:36:55.770 --> 00:37:00.770
And in terms of the, my sister mentioned the incentivized,

780
00:37:03.390 --> 00:37:08.390
there is so many costs associated with keeping a house,

781
00:37:09.591 --> 00:37:13.653
that really is another red herring argument.

782
00:37:21.390 --> 00:37:22.223
So,

783
00:37:23.670 --> 00:37:24.610
essentially

784
00:37:29.926 --> 00:37:31.926
MassHealth is protected,

785
00:37:33.930 --> 00:37:38.430
and I wanna talk about the retroactivity.

786
00:37:38.430 --> 00:37:40.050
Second point.
<v ->Oh dear, okay.</v>

787
00:37:40.050 --> 00:37:41.580
So we're a little bit over.

788
00:37:41.580 --> 00:37:45.120
Does anyone have any questions about the retroactivity?

789
00:37:45.120 --> 00:37:47.102
<v ->Thank you, Chief.</v>
<v ->Is it in your brief, sir?</v>

790
00:37:47.102 --> 00:37:48.003
<v ->Yes.</v>

 