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Knori v. State4/14/2005
[ ] This case concerns the availability of the defense of equitable estoppel against a governmental agency seeking to collect a judgment on a creditor's claim. The District Court granted the agency's motion for summary judgment. For the reasons stated herein, we affirm.
ISSUE
[ ] Appellant states the issue as follows:
s equitable estoppel against a governmental agency allowed and an appropriate remedy under Wyoming law when an employee of the Wyoming Department of Family Services, employed as a Medicaid Eligibility Technician, negligently informs and advises an applicant for Medicaid assistance for nursing home care that her family home is permanently exempt from estate recovery under the provisions of W.S. §42-4-206, and the applicant acts on that advice to her substantial prejudice.
The State addresses the issue somewhat differently:
Whether the District Court correctly ruled that, under the Doctrine of Equitable Estoppel, a governmental employee did not bind the State of Wyoming by making an erroneous, unauthorized oral statement, which was contrary to both federal and state law.
FACTS
[ ] In late January or early February of 1995, Richard D. Knori (Knori), in his capacity as guardian and conservator of his grandmother, Pansy B. Knori (Pansy), sought advice from Hazel Staley (Staley), a "Medicaid Eligibility Technician," employed by the Wyoming Department of Family Services (the Department). Specifically, Knori inquired as to Pansy's eligibility for Medicaid assistance for nursing home care and as to the long-term liability, if any, of Pansy's estate for reimbursement for the costs of the Medicaid assistance.
[ ] Staley advised Knori that, if Pansy wished to preserve her family home, she need only apply for Medicaid assistance for the nursing home care with the "intent to return home." Staley informed Knori that, once Pansy exhausted her cash assets to the limits for eligibility, Medicaid would pay the costs of the nursing home care. Further, Staley advised that Pansy's real property would be exempt from Medicaid reimbursement recovery, both before and after her death.
[ ] In fact, Staley was incorrect. In 1993, Congress passed the Omnibus Budget Reconciliation Act of 1993 (OBRA), effective July 1, 1993. This Act mandated recovery of Medicaid costs from the estate of a deceased recipient by those states participating in the Medicaid program, of which Wyoming was one. Under OBRA, Wyoming was given one year to bring its laws into compliance with the mandatory estate recovery. Effective July 1, 1994, Wyoming passed Wyo. Stat. Ann. § 42-4-206 (LexisNexis 2003) to conform to OBRA requirements. The intent of the statute was:
implement changes to the Wyoming Medical Assistance and Services Act required by the Federal Omnibus Budget Reconciliation Act of 1993. This act is intended to authorize changes to the state plan for medical assistance and services under chapter 4 of title 42, which are required or authorized by the provisions of the Federal Omnibus Budget Reconciliation Act of 1993, and which are in accordance with the provisions of this act. It is the intent of the legislature that the provisions of this act be interpreted in accordance with construction of that federal act and rules promulgated pursuant to that act.
1994 Wyo. Sess. Laws, ch. 73, § 4. Further, under the provisions of Wyo. Stat. Ann. § 42-2-103(b)(xiii), the state administering department was required to adopt rules necessary to carry out the provisions of § 42-4-206 for "Medicaid Benefit Recovery." Such rules were adopted, effective June 30, 1995. At the time Staley advised Knori, she advised
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