U.S. Department of Health and Human Services
Medicaid Estate Recovery
In order to fulfill this mission, Medicaid also recovers expenses paid on behalf of recipients from their estates under certain circumstances.
Highlights of the 1993 Estate Recovery Mandate:
States must pursue recovering costs for medical assistance consisting of:
Nursing home or other long-term institutional services;
Home- and community-based services;
Hospital and prescription drug services provided while the recipient was receiving nursing facility or home- and community-based services; and
At State option, any other items covered by the Medicaid State Plan.
At a minimum, states must recover from assets that pass through probate (which is governed by state law). At a maximum, states may recover any assets of the deceased recipient.
WHOSE ESTATES ARE SUBJECT TO RECOVERY?
Recoveries may only be made from the estates of deceased recipients who were 55 or older when they received Medicaid benefits
When home equity becomes part of the estate, it is subject to Medicaid estate recovery. The survivors may either sell the home and use the proceeds to satisfy the Medicaid claim or, if they wish to keep the home in the family, satisfy the claim with their own personal funds.