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BAM 120 9 of 12 MSA/MDHHS COORDINATION BPB 2026-007 4-1-2026

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

Eligibility Quality Assurance Section/Reimbursement Attn: Venetta Tucker 400 S. Pine St., 5th floor Lansing, MI 48913 MSA ESTATE RECOVERY UNIT Recoveries for Medicaid claims correctly paid are as follows: • For individuals who received medical assistance at age 55 or older, recovery is made from the individual’s estate for all services covered by the Michigan Medicaid program with dates of service on or after July 1, 2010, except Medicaid cost sharing. To be subject to estate recovery, a person over 55 must have begun receiving long-term care services after September 30, 2007. If a beneficiary over the age of 55 began receiving long-term care services prior to September 30, 2007 and there was a break in coverage and a new eligibility period began any time after September 30, 2007, the Medicaid recipient will be deemed to have begun receiving long-term care after September 30, 2007 and therefore be subject to recovery. • Recovery will only be pursued if it is cost-effective to do so as determined by the department at its sole discretion. Limitations on Recoveries The state complies with the requirements of section 1917(b)(2) of the Social Security Act: Recovery of medical assistance will be made only after the death of the individual’s surviving spouse, and only when the individual has no surviving child who is either under age 21, blind, or disabled. The department is responsible for approving and denying all undue hardship waivers and statutory exemptions. The department will establish and use internal policies regarding what documentation is required to establish that an undue hardship waiver or statutory exemption may exist. Undue Hardship Recovery may be waived if a person inheriting property from the estate can prove that recovery would result in an undue hardship. An application for an undue hardship must be requested by the applicant and returned with proper documentation in order for a