1725 Estate Recovery Program

See Policy Memo 2002-10-02, re: Prepaid Funeral Agreements .

The estate recovery program has been established as a means to recover medical care costs from the estates and property of certain medical assistance recipients. The administration of the Estate Recovery program is the responsibility of the Estate Recovery Unit (ERU) in KDHE-DHCF. ERU handles all post-death recovery actions, court action, lien imposition, negotiations, and other related activities. KDHE-DHCF has delegated some legal and administrative responsibilities to a private contractor, currently Health Management Systems. ERU is responsible for oversight of the contractor. Neither ERU nor the contractor provide eligibility determinations. Eligibility staff are responsible for the determination as well as basic education regarding the Estate Recovery program.

NOTE : Effective July 1, 2025, Medicaid may only recoup ABLE funds after the beneficiary’s death if the beneficiary was age 55 years old or older and received Medicaid-covered services in an assisted living facility, group home, or nursing home. For beneficiaries under age 55, ABLE funds are not subject to recovery as it is now permissible for any remaining ABLE balance (after the beneficiary’s death) to be transferred to the beneficiary’s estate or rolled over to another eligible individual’s ABLE account.