New York Court of Appeals
Patricia Cricchio v. Joseph A. Pennisi…
March 25, 199790 N.Y.2d 296
Summary
The New York Court of Appeals held that a Medicaid lien under Social Services Law § 104‑b must be satisfied before settlement proceeds may be transferred to a supplemental needs trust. The Court reasoned that federal and state statutes give the Department of Social Services priority to recoup Medicaid expenditures from third‑party recoveries, and that the lien does not violate the prohibition on pre‑death liens because it attaches to the third‑party’s assets. The Appellate Division orders were reversed and the cases remanded for further proceedings.