Godown v. Department of Public Welfare

In 2000, Albert Godown (plaintiff) and his wife transferred their 10-acre residence with a house, apartment, and commercial greenhouse to their children for $1. The property’s fair market value (FMV) was $500,000. The transfer left Godown and his wife with almost no assets. At the time of the transfer, Godown had mobility issues and used mobility aids. The next year, Godown suffered a stroke that left him unable to care for himself. His wife, who was legally blind with diabetes and heart disease, was unable to care for him. Consequently, Godown applied to the county assistance office for Medicaid for nursing-home care. When the office learned of the earlier property transfer, it gave the children an opportunity to transfer the property back to their parents. However, the children refused. The department denied Medicaid to Godown, concluding that the recent property transfer for less than FMV created a presumption that the transfer was for the purpose of bringing Godown within Medicaid’s means threshold and rendered him ineligible. Godown contested, prompting a hearing at which Godown’s wife testified that the property was transferred to the children to keep it in the family, not to qualify for Medicaid. However, the hearing officer upheld the initial determination that Godown was ineligible. Pennsylvania’s Department of Public Welfare (department) (defendant) affirmed that decision, and Godown appealed to the Pennsylvania Commonwealth Court.