Thursday, January 19, 2012

VACANT LOT YIELDS HIDDEN TREASURE FOR MEDICAID OFFICIALS IN MASSACHISETTS

Cash-strapped states are leaving no stone unturned when it comes to recovering from the estates of deceased Medicaid long-term care recipients. Still, few would think to search in vacant lots, but that’s where $178,496.00 was found that a Massachusetts judge recently ruled belongs to the Commonwealth as reimbursement for Medicaid payments to a nursing home resident who died a decade ago.


The cash was in a safe that had been dumped in a lot located in the city of Lawrence, which is near the Massachusetts' border with New Hampshire. The safe had once belonged to Sally Daher, a local shoe store owner who spent her last five years in a nursing home.


The safe ended up in the lot because a shoe repairman who rented Ms. Daher’s old store wanted to get rid of it, believing it was a target for burglars. Apparently assuming Ms. Daher had emptied the safe of its contents, the repairman paid a tow truck driver $200.00 to haul it away. When the driver couldn’t sell the safe for scrap, he dumped it in a lot next to his home.


There it lay until Lawrence firefighters noticed it in November 2008. After an hour of work with a metal cutting torch, a jack hammer and an air hammer, the firefighters managed to pry the safe open. Inside they found $178,496.00 in cash packed in plastic shopping bags from Ms. Daher’s old store. The newest bill was from 1982.


At that point, several people laid claim to the cash, including Ms. Daher’s relatives and the tow truck driver. But when Massachusetts Medicaid officials learned that the safe was linked to Ms. Daher, they filed a claim to recover Medicaid funds they had spent on her while she was in the nursing home.


A superior court judge ruled that the cash found in the safe belonged to Ms. Daher and that it was part of her “probate estate.” This means, the judge said, that the safe’s contents are now the property of the Massachusetts Division of Medical Assistance as repayment for medical bills Ms. Daher incurred.


Ken Daher, one of Ms. Daher's surviving children, told the Eagle-Tribune, a local newspaper, that the family would not contest the judge’s ruling.


"I am ecstatic. This is the best Christmas present I could get," said Mr. Daher. "My mother wouldn't have wanted money owed or a handout in a million years . . . My mother did not live like that."

December 26, 2011
Judge: State gets $178K found in safe
By Jill Harmacinski of the Eagle-Tribune