Medicaid Applicant Who Successfully Argued Trust Was Not Countable Is Entitled to Attorneys' Fees

A U.S. district court in Oklahoma grants attorneys' fees to woman who received Medicaid benefits after successfully arguing in court that her trust was not a countable resource.  Hauenstein v. State (U.S. Dist. Ct., W.D. Okla., No. CIV-10-940-M, Aug. 26, 2011).

Marcia Hauenstein applied for Medicaid benefits, but the state imposed a penalty period due to a trust established by her father. Ms. Hauenstein sued the state in federal court, arguing the trust was not a countable resource. Following motions for summary judgment, the court found for Ms. Hauenstein (Hauenstein v. State ex rel. Oklahoma Department of Human Services, W.D. Okla., No. CIV-10-940-M, May 19, 2011) and the state granted her Medicaid benefits.

Ms. Hauenstein filed a claim for attorneys' fees. The state argued that Ms. Hauenstein is not entitled to attorneys' fees because she did not receive judgment under 42 U.S.C. § 1983 and she was certified for Medicaid before the judgment was granted. The state also argued that the judgment was granted on facts and legal theories that were not asserted by Ms. Hauenstein until a week before the hearing, therefore the majority of time that Ms. Hauenstein was seeking payment for was unnecessary and unreasonable.

The U.S. District Court for the Western District of Oklahoma grants attorneys' fees. The court rules that the court's order clearly granted judgment under 42 U.S.C. § 1983 and that the state provided no evidence Ms. Hauenstein received Medicaid benefits before the judgment. In addition, the court concludes that the basis for the court's decision was consistent with the facts and allegations set forth in Ms. Hauenstein's complaint, so the attorneys' fees were not unnecessary or unreasonable.