Congress House Bill:   STOP Mandatory Medicaid Estate Recovery

We are watching for the reintroduction of the “Stop Unfair Medicaid Recoveries Act” by Rep. Jan Schakowsky. It would end mandatory Medicaid Estate Recovery.  We understand she is currently lining up cosponsors.  Last session it was  enrolled as  H.B. 6698 .  You Can Read the Bill here on the Congress website.

For an example of how cruel Medicaid Estate Recovery can be, look at:

• Kansas family warns others that Medicaid can take your house
  https://www.youtube.com/watch?v=ez4mnCYpn4o
• PBS, The Medicaid bill that doesn’t go away when you die
  https://www.youtube.com/watch?v=WsARJYhzmKE
• Pennies on the Dollar
  https://www.tptoriginals.org/pennies-on-the-dollar-the-controversial-medicaid-estate-recovery-program/

Recipients of Long Term Care Services who are 55 years old and up.

Medicaid Estate Recovery applies to all persons over 55 who receive “long term care services” including nursing facility services, home and community-based services (HCBS), and related hospital and prescription drug services.  The recovery for in-home HCBS services come as a surprise for many.  As soon as a person receives long term care services then ALL services thereafter comprise the Medicaid payback claim.  For example years worth of prescriptions can be very expensive.

Each State has its own unique Estate Recovery Plan.

All states Must have some form of Medicaid Estate Recovery.  Some states make it easy to avoid such as only going after property that goes through probate.  Others are much more aggressive and attach recovery to property that avoids probate such as trusts and jointly owned property. Some place “TEFRA” liens on your home like a mortgage does while you are still receiving long term care services.  At present the safest plan for your own situation is to hire an elder law attorney who is familiar with the Medicaid policies of your own state and put in place a plan to avoid Medicaid Estate Recovery.

If you hire a lawyer,  which may be expensive in the thousands of dollars, you may be able to completely avoid Medicaid Estate Recovery. But, why should you  have to hire a lawyer?

MACPAC Report on Problems with Medicaid Estate Recovery

The respected and authoritative Medicaid and CHIP Payment and Access Commission published a comprehensive report on the problems of Medicaid Estate Recovery and possible solutions here.

Why Do We have Medicaid Estate Recovery?

If you do a bit of research you will find two common reasons for it:

• 1) States claim their programs need the money. The reason fails when we consider that MACPAC reports that on the average states only collect .5% of their Medicaid budget.
• 2) Why should taxpayers pay other folks care?  The question fails when one considers that the average age of recipients in nursing homes are in their mid-80s. That means they have been taxpayers for over 65 years! Some are Veterans.  Haven’t they paid enough to earn the right to help when needed?  We don’t demand people payback for other governmental program services including Medicare, fire and police services, education, roads etc.

For more comprehensive information see our Critical Issue Brief: “End Medicaid Estate Recovery Now!  Critical Issue Brief: “End Medicaid Estate Recovery Now!”  You will see the numerous reasons why Medicaid Estate Recovery is not only wrong, but harms our country and communities. For example you will see that the Same reason why millionaire farm families and small business owners don’t pay “estate tax, working families should not pay “Medicaid tax.”

Jim