The United States Court of Appeals, Seventh Circuit, issued a decision on Bethesda Lutheran Homes and Services, Inc. vs. Joseph Leean, on August 21, 1997. The decision changed federal and state policies that required evaluation of the residency of the parents or legal guardians of certain institutionalized individuals in Wisconsin. The court ruled that these policies restricted the right of a person to interstate travel in violation of constitutional rights.

Many incompetent adults and individuals under the age of 21 have been placed in medical institutions in Wisconsin for a long-term stay by a parent or legal guardian who lives in another state. Prior to this court decision, per POMS SI 01410.030, the state of residency for these persons was the state in which the parent or legal guardian lived.

In compliance with the court decision as implemented by the State, the state of residence of a person who is either under age 21 or an incompetent adult, who is institutionalized in Wisconsin, will no longer be based on the state where the individual's parent or legal guardian lives. When the parent or legal guardian lives outside Wisconsin, the individual's residence is the state in which the parent or legal guardian states the institutionalized person is physically present and intends to stay.

This change of position is effective May 13, 2002. For cases meeting the above criteria, the residence address should be changed effective the month after the month the individual moves to the institution in Wisconsin. If you are applying administrative finality to the address change, see the reopening rules in POMS SI 04070.010