Apr. 14—TRAVERSE CITY — A local man says he still has questions about a probate court case in which an attorney sought to sell his family's home to settle an $11,416.98 Medicaid debt.

"For three years I've had questions and I still do," Thomas Stowe said.

Thomas and his brother, Robert Stowe, appeared for a March hearing in front of Grand Traverse County Probate Court Judge Jennifer Witten, regarding their mother's estate.

Joanne Stowe, 87, died in 2020 of complications related to Alzheimer's disease, and her estate is listed as the owner of the Stowe family home in Long Lake Township.

Thomas Stow was his mother's longtime live-in caregiver, still lives in the home, represented himself and objected to a petition, filed by attorney Mattias Johnson, which if granted, could have cleared the way for the home to be sold.

Johnson was previously appointed as the estate's personal representative, though court records show Whitten terminated his appointment after Johnson, who did not return calls or emails seeking comment, missed document filing deadlines.

Johnson declined to comment, citing the ongoing nature of the case.

Personal representatives of decedent estates are appointed by probate court judges to help guide an estate through the probate court process.

Personal representatives are paid from the estate, and not from the probate court; in the Stowe case, the parties appear to have agreed that the estate's sole asset is the Stowe family home.

But Thomas Stowe, 63, said he didn't understand how the proceedings could go forward, when he likely qualified for an exemption.

Stowe, in 2014 sold his mobile home, moved in with his parents as their full-time caregiver, and became his mother's constant companion after his father, Edward Stowe, died in 2018 after suffering a stroke.

"I have been told that I most likely qualify for the Disabled Child exemption to Estate Recovery Medicaid debt which was used for justification to open probate, and is being used to force the sale of the house that I been living in since September 1st, 2014," Stowe said, in his objection, filed Feb. 20.

MDHHS apparently agreed, because on Feb. 23, they granted Thomas Stowe the waiver.

Judge Whitten at the March 12 hearing, ordered a 30-day adjournment, after stating she'd received notice of the waiver's approval.

Johnson told the judge he'd received notice of the waiver that day, but wanted to confer with another attorney, Nathan Piwowarski before filing a motion to withdraw.

Nevertheless, he acknowledged the case might be moot.

"And that is the only claim," Johnson told the judge, of MDHHS' previous recovery efforts. "So if there is no recovery sought, then there really is not a need to reopen this estate."

Piwowarski, who represents MDHHS estate recovery, said he could not comment on a pending case.

As of Friday, 30 days after the March hearing, probate court staff said no motion to withdraw the petition had been processed.

Correspondence shows Joanne Stowe received Medicaid services billed at $11,416.98, and that Johnson told Thomas Stowe the only way to pay off the debt was to sell the house.

"We have a realtor ready to stop by this week or early next week to prepare for the sale of the house," Johnson told Thomas Stowe, in a Jan. 15 letter.

The federal government requires state Medicaid offices to recoup payment from the estates of Medicaid beneficiaries and, in Michigan, that's handled by the state Department of Health and Human Services.

But Thomas Stowe said he still has questions about why a house he estimated is valued at $250,000, would be sold to pay an $11,416.98 debt.

Medicaid policy documents state two rules relevant to Stowe's situation:

One, claimants can attach a lien to the house, instead of forcing a sale, and be paid when the house sells.

And two, disabled children of any age who live in a home subject to a Medicaid claim, can seek a waiver, which again would pay back Medicaid when the adult child, in this case Thomas, died or moved out of the house.

Additionally, an April 2 Michigan Legislative Service Bureau memo addressing Medicaid estate recovery, says that most states have a "cost effectiveness threshold" and considers various "hardship" factors when deciding whether to pursue a recovery.

Under Michigan law, the memo states, "assets will not be recovered from the home" if a spouse, a child under 21, a child who is blind or permanently disabled, or a relative who provided caretaking, lived in the home.

It's MDHHS, and not an estate's personal representative, which is responsible for issuing a Medicaid recovery waiver and Thomas Stowe appears to qualify under two of these conditions — he's received Social Security disability benefits since 2010 due to a previous injury, and he provided years of live-in and full-time care to his mother.

State Rep. Betsy Coffia (D-Traverse City), whose office worked with the Stowe family for months to help them navigate MDHHS and Medicaid, previously said Thomas Stowe likely saved the government hundreds of thousands of dollars by caring for his parents, and his mother in particular, at home.

Coffia said she'd reviewed state statute, is urging further inquiry as it appeared to her the case should not have moved ahead, as Thomas Stowe's disability was known as far back as July 2022.

"I do not see the justification for pursuing it especially over such a small amount owed and I'm questioning why he wasn't granted disability waiver until early 2024 after my office got involved," Coffia said.

Court records show Piwowarski on March 18 submitted a $1,484 bill to the probate court for an "administrative services claim related to initiating the estate (and which were necessary for title transfer of decedent's real estate, even if estate recovery claim had not existed.)"

It's likely a hearing will be scheduled on the bill and if approved by a judge, the amount could be considered a claim against Joanne Stowe's estate

Court procedures show such a billing is often standard practice and even required in some cases.

Thomas Stowe said he received a notice from the probate court, stating the adjournment of the March 12 hearing would last from 30 to 45 days. Stowe said he planned to keep a close eye on the calendar.