Johnson v. Guhl

OPINION OF THE COURT

AMBRO, Circuit Judge.

Medicaid is a federal assistance program, administered by the states, that helps individuals with below a certain level of assets pay for medical expenses. 1 Because Medicaid is available only to the needy, creative lawyers and financial planners have devised various ways to “shield” wealthier claimants’ assets in determining Medicaid eligibility. In this context, we decide, among other issues, whether New Jersey has correctly interpreted federal law to preclude use of a private annuity trust to shield assets.

I. Background

Plaintiffs in this case are…