American Accounting Association 2006 Midwest Region Meeting March 30 – April 1 Chicago, Illinois

Friday, March 31, 10:20 a.m.-12:00 noon Concurrent session 2C - Fraud, Ethics, Equity and Partnerships (Taxation)

Title: The O’Hearns: (A) Estate Planning in the Presence of Long-term Care Considerations, and (B) A Case of Medicaid Fraud?

David O’Bryan Pittsburg State University	Jeffrey J. Quirin Wichita State University
Rebekah Sheely Heath Pittsburg State University

ABSTRACT: This case has two parts. The first part exposes students to issues surrounding estate planning when one or both spouses contemplate a need for costly long-term care. The role of Medicare and especially Medicaid in paying for such care is emphasized. The case addresses such issues as whether or not to purchase long-term care insurance and what factors to consider when transferring assets. In addition to addressing legal and technical issues, the case also addresses ethical issues (e.g., the ethics of impoverishing oneself through the transfer of assets in order to qualify for Medicaid). Part one may be used in any undergraduate or graduate level course that includes some emphasis on estate planning. The second part of the case is designed for use in an auditing or fraud examination course. It addresses the techniques utilized in testing the legitimacy of Medicaid application information, as well as a CPA’s responsibility to report fraud.

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