Claiming the practice forces senior citizens into poverty, the American Association of Retired Persons is launching a class-action lawsuit to stop the state from placing liens on homes of seniors receiving Medicaid.
Medicaid law prohibits states from recovering any Medicaid money from the sale of jointly-owned property until both spouses have died. Despite the law, Nevada State Welfare has repeatedly placed liens on homes while both husband and wife are still alive, the AARP said.
In many cases, the liens are for substantially more than the actual value of the house, leaving the surviving spouse with no money to pay for assisted living, the group alleged in the suit.
"The law, in effect, puts the surviving spouse into poverty," said AARP spokeswoman Jody Olson.
The Nevada law mirrors a federal statute that also prohibits such sales if the one spouse is still living in the house.
The AARP has enlisted the help of Rochelle Bobroff, its Washington, D.C.-based attorney, and Nevada attorney James O'Reilly.
The group was expected to appear before District Judge Ron Parraguirre this morning.
archive