507 ESTATE RECOVERY

Under the Omnibus Budget Reconciliation Act of 1993 (OBRA 93), state Medicaid agencies are required to recover from the individual’s estate the cost of Medicaid that was provided to persons age 55 and older for nursing facility services, home and community based services, and related hospital and prescription coverage. These requirements may have a significant impact on estate planning, particularly for individuals who wish to protect family assets from the high cost of nursing home care. Under the rules for estate recovery, the state must seek reimbursement from the estate of the deceased Medicaid recipient. Property that was exempt during the Medicaid recipient's lifetime is Individualized Supports no longer exempt when the recipient dies, except that the State cannot collect from an estate if there is a:

Surviving spouse;

Minor child; or

Disabled (as determined by social security) dependent child of any age residing on property included in the deceased's estate.

Previous Section Next Section MC #9 (7/08)

loading…

507 ESTATE RECOVERY

Official source

507 ESTATE RECOVERY

Under the Omnibus Budget Reconciliation Act of 1993 (OBRA 93), state Medicaid agencies are required to recover from the individual’s estate the cost of Medicaid that was provided to persons age 55 and older for nursing facility services, home and community based services, and related hospital and prescription coverage. These requirements may have a significant impact on estate planning, particularly for individuals who wish to protect family assets from the high cost of nursing home care. Under the rules for estate recovery, the state must seek reimbursement from the estate of the deceased Medicaid recipient. Property that was exempt during the Medicaid recipient's lifetime is Individualized Supports no longer exempt when the recipient dies, except that the State cannot collect from an estate if there is a:

Surviving spouse;

Minor child; or

Disabled (as determined by social security) dependent child of any age residing on property included in the deceased's estate.

Previous Section Next Section MC #9 (7/08)