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7 AAC 160.240. Waiving estate recovery. (a) After considering the information gathered in accordance with 7 AAC 160.210, or after considering an appeal based on 7 AAC 160.230, the department may waive all or part of the department’s claim for recovery. (b) The department will waive recovery for undue hardship if the department determines that recovery would impoverish the estate beneficiary. To determine if estate recovery would impoverish the estate beneficiary, the department will consider whether

(1) the estate’s only asset produces income, and recovery would cause an estate beneficiary’s loss of livelihood;

(2) recovery would deprive the beneficiary of food, clothing, shelter, other necessities of life, or medical care, thereby endangering the beneficiary’s health and safety;

(3) an estate beneficiary’s primary residence is the estate’s only significant asset and recovery would cause impoverishment of the estate beneficiary as follows:

(A) recovery of the asset would make the beneficiary eligible for public assistance;

(B) a beneficiary could discontinue eligibility for public assistance if the beneficiary was to receive the asset; or

(4) a beneficiary’s primary residence is a home of modest value as determined on the date of the recipient’s death; in this paragraph, “modest value” means 50 percent or less of the average price of homes in the community, based on Department of Labor and Workforce Development statistics, and as determined as of the date of the recipient’s death. (Eff. 2/1/2010, Register 193) Statutory Authority: Authority: AS 47.05.010 AS 47.07.040 AS 47.07.055 7 AAC 160.250. Exemptions from estate recovery. (a) A special low-income Medicare beneficiary under 7 AAC 100.754 who receives assistance from the department only in the form of payment for the beneficiary’s Medicare co-payments or deductibles is exempt from estate recovery.