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Medical Services Policy Manual, Section H

H 730 Hardship Waiver for Estate Recovery

To apply for a waiver, the representative or distributee mustmail a statement setting forth the facts which constitute the undue hardship to: Third Party Liability Unit Attention: Decedents’ Estates P. O. Box 1437, Slot S296 Little Rock, AR 72203-1437 The statement must set forth the facts that constitute the undue hardship. Tax returns, income statements or other documents which support the position that estate recovery would work an undue hardship on the survivors must be submitted. The Third Party Liability Unit will send the hardship request and supporting documents to the DCO Hardship Waiver Committee. In determining the existence of an undue hardship, the DCO Hardship Waiver Committee will consider factors including, but not limited to the following: 1. The estate asset subject to recovery is the sole-income producing asset of beneficiary of the estate; 2. Without receipt of the proceeds of the estate, a beneficiary would become eligible for federal or state benefits; 3. Allowing a beneficiary to receive the inheritance from the estate would enable a beneficiary to discontinue eligibility for federal or state benefits; 4. The estate asset subject to recovery is a home with a value of fifty percent (50%) or less of the average price of homes in the county where the homestead is located, as of the date of the decedent’s death; and 5. Other compelling circumstances. A determination that hardship does not exist will bemade if the individual created the hardship through estate planning in which assets were divested in order to avoid estate recovery. A decision on the hardship waiver will be made by the DCO Hardship Waiver Committee. The committee’s decision and information about the right to appeal the decision will be sent by certified mail, return receipt requested, to the person who applied for the waiver. If the person who applied for the waiver disagrees with the DHS decision, they may appeal the decision within thirty-five (35) days of receipt of the notice about the decision (MS J-100).

If recovery is notmade due to the determination of hardship, DHS may decide to recover at a later time if the conditions which caused the original hardship cease to exist.