UNITED STATES SUPREME COURT DECISIONS ON-LINE

Held: The Court of Appeals' decision upholding, as not in conflict with governing federal law, a California statute that denies Medicaid benefits to "medically needy" persons because of their previous transfers of assets for less than full consideration is vacated, and the case is remanded. After this Court's grant of certiorari, Congress amended the Social Security Act to alter significantly the federal standards governing state Medicaid plans with respect to transfer of asset rules. This change, which may require some modification of the California rule, makes it inappropriate for this Court to decide the merits of the underlying dispute as considered by the Court of Appeals. Instead, the recent statutory amendment requires reconsideration of the decision below by the Court of Appeals.

622 F.2d 1304, vacated and remanded.