Recent coverage from reputable news sources such as The New York Times and Associated Press has brought renewed attention to the detrimental effects of Medicaid estate recovery on families.

Understanding Medicaid: Medicaid is a public assistance program aimed at providing health insurance coverage for Americans with limited means. To qualify, individuals must meet strict income and asset guidelines, usually not exceeding $2,000 in assets. Institutional Medicaid is the only government program that covers long-term nursing care.

Medicaid Estate Recovery: Federal law mandates that states attempt to recover funds spent on a Medicaid recipient’s medical care during their lifetime. This includes costs for nursing facility services, prescription drugs, and long-term care. The Medicaid Estate Recovery Program affects recipients aged 55 and older. Medicaid estate recovery can have devastating financial consequences for families, particularly those with lower incomes. In some cases, survivors may lose their family home or face bankruptcy due to state recovery efforts.

The Stop Unfair Medicaid Recoveries Act: In March 2024, U.S. Rep. Jan Schakowsky reintroduced legislation proposing to end Medicaid estate recovery. The bill aims to prevent states from placing liens on Medicaid recipients’ homes and improve access to long-term care services.

To steer clear of Medicaid estate recovery, meticulous planning is necessary. Given the high probability of requiring long-term care, proactive preparation is vital. Consulting with an elder law attorney is crucial for making well-informed decisions.