In Part I and II of this series, I discussed a case law in New Jersey that addressed a challenge to the postponement of a penalty period of ineligibility by the New Jersey Department of Human Services.
The Federal Court noted as an initial point, the applicant had resources over $2,000 making her ineligible for Medicaid benefits. The applicant argued that she was eligible for Medicaid benefits in March through June of the calendar year when she initially applied for benefits. Because she was not deemed eligible for Medicaid benefits until months after filing her application, her penalty period did not begin to run until eligibility was achieved in accordance with state law. While the applicant argued that a penalty period cannot “be tolled (i.e., will not be interrupted or temporarily suspended), there was no tolling since the penalty period was never triggered due to Plaintiff’s ineligibility at the time she first applied.
Because the state of New Jersey properly applied the penalty period, the court ruled that the applicant failed to show a likelihood of success on the merits, therefore, her motion for a preliminary injunction was denied.
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