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BAM 120 10 of 12 MSA/MDHHS COORDINATION BPB 2026-007 4-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

hardship waiver to be considered. In order to qualify for a hardship exemption, an applicant must file the application with the depart- ment not later than 60 days from the date the department sends the Notice of Intent to the personal representative or estate contact. An undue hardship exemption is granted to the applicant only and not the estate generally. Undue hardship waivers are temporary. Submitted applications will be reviewed by the department or its designee, and the department shall make a written determination on such application. An undue hardship may exist when one or more of the following are true: • The estate subject to recovery is the sole-income producing asset of the survivors (where such income is limited), such as a family farm or business. • The estate subject to recovery is a home of modest value, see definition in this item. When considering whether to grant an undue hardship, the depart- ment shall apply a means test to all applicants to ensure that waiv- ers are not granted in a way that is contrary to the intent of the estate recovery program under federal law. An applicant for an undue hardship waiver will satisfy the means test only if both of the following are true: • Total household income of the applicant is less than 200 percent of the poverty level. • Total household resources of the applicant do not exceed $10,000. Appeals The Hardship Waiver applicant has the right to contest the depart- ment decision of whether an undue hardship exists. The applicant may request a hearing within 60 days of the notice of case action on the application. The request for a hearing must be in writing and will be conducted under the provisions of BAM 600, Hearings.