What is Medicaid Estate Recovery?
When a person is approved for Medicaid benefits the state Medicaid office will keep track of the funds paid on their behalf. Upon their passing the Medicaid office will issue a bill to the person's estate equal to the amount Medicaid has paid on their behalf.
Under federal and state rules, the Medicaid office is required to recover Medicaid benefit payments from the individual’s estate for nursing facility services, home and community-based services, and related hospital and prescription drug services.
The Medicaid office usually seeks estate recovery immediately upon death unless the person has a surviving spouse, surviving child under the age of 21 or surviving child who is blind or disabled.
When a Medicaid recipient passes away, it becomes the responsibility of the person handling their final affairs to contact the Medicaid office and notify them of the person's passing. The Medicaid office will then let you know if there is going to be a claim issued against the estate. This should be done in the very beginning of the estate administration process or as soon as the person passes [if no estate administration is needed].
What is a Medicaid claim against an estate?
A claim against an estate is a demand for payment from a state Medicaid agency. The amount owed will be equal to the amount of Medicaid benefits paid on behalf of the deceased person.
Note: if the person did not own anything at their passing, the Medicaid claim may go unpaid. The Medicaid office generally cannot demand payment for the amount owed from anyone else [except possibly a spouse, depending on the circumstances].
If you or someone you know needs to talk to a professional about Medicaid, please give us a call for a COMPLIMENTARY phone consultation at 855.471.6771 or contact by email - [email protected]
