BLUM, COMMISSIONER OF NEW YORK STATE DEPARTMENT OF SOCIAL SERVICES v. CALDWELL Et Al.

Background

Barbara Blum, the New York State official in charge of welfare, asked a Justice to pause the appeals court’s order that blocks New York’s rule denying Medicaid to people who recently gave away property. The respondents are elderly, blind, or disabled people who would qualify for SSI except for their income and resources and who were denied medically needy Medicaid because they had made voluntary transfers. The District Court certified a class, granted a preliminary injunction, and the Court of Appeals affirmed that injunction.

Reasoning

The central question was whether New York’s no-transfer rule for the medically needy conflicts with federal Medicaid rules and a federal agency regulation that bars states from using more restrictive eligibility rules for aged, blind, and disabled people than the SSI rules. The Justice weighed the harms: New York argued the rule would cost the State money during further review; respondents pointed to risks to life and health if benefits were cut. The Justice agreed the balance favors the class and found the applicant failed to show it was likely that four Justices would vote to take the case, noting uniform appellate decisions and agency agreement with the injunction.

Real world impact

As a result, New York cannot enforce its no-transfer rule while any petition for Supreme Court review is filed and decided, so class members continue to receive medical assistance for now. The decision is interim, not a final ruling on the law’s merits; a later Supreme Court decision or Congressional change could alter the outcome. The State’s voluntary plan to end its agreement with the federal agency was noted but not treated as a reason to block relief.