This is the exact scenario of a family in New Jersey who had a rude awakening of Medicaid rules. Mom and dad owned a house in New Jersey for years. Dad eventually got sick and needed nursing home care and was admitted to a nursing home in New Jersey. Daughter moved into the home to be a caregiver for her mom while her dad was in the nursing home. Years passed and dad eventually died. Mom was living in the home with her daughter until she got sick and had to be admitted to the nursing home in New Jersey. Mom eventually passed away. The daughter continued living in the home believing that the home would eventually be given to her at probate, but Medicaid came calling with a lien on the home to recoup the money they had spent on her parents while they were in the nursing home when they were alive. The daughter was extremely angry that Medicaid served her with papers stating they were selling the house to recoup the money it paid to the nursing home while her parents were alive. The daughter did everything in her power to stop Medicaid from selling her parents’ house but in the end Medicaid won.

It is a misconception by many that Medicaid is a “free” program offered by our government, which is not true if you have countable assets. People need to be aware of this and should seek the expertise of an elder law attorney from their state so they can understand the ramifications of receiving help from Medicaid.

10 months after Dad passed away, we got a letter from Medicaid asking to be paid
 $22000, which scares us. Dad had nothing, we cared for him and fed him. Took him to
 doctors when needed. According to what we read online we do not have to pay for this.
 We filled out their form, plus wrote a letter saying Dad had nothing. We also gave
 them our phone number in the hope they would call us saying all it written off. will
 We receive anything back conforming this from Medicaid.

Can a non relative live in the home for free while Medicaid is paying nursing home? The home is in a living trust with sibling as successor trustee. All bills are still in patients name....does the patient still pay these bills while she’s in the nursing home on Medicare?

What am I not understanding about the scenario presented? If the Medicaid beneficiary consulted with appropriate experts and transferred funds early enough that the transactions occurred beyond the lookback period, why would the beneficiary not be considered genuinely eligible for coverage, and why would their estate (such as it is) be considered liable after their death? In fact, why would benefits have been granted in the first place if assets held within the lookback period exceeded eligibility requirements? What am I missing?

What happens to the income the at home spouse was receiving due to the Cmrc laws

I'm right there with you. I'm trying to make sure the state of Texas doesn't take my mother's home from me upon her death. The nursing home doesn't seem willing to do any other work on my behalf. I'm paying taxes now on mobile home I'm behind on the land

My husband and I helped Mom qualify for a home five years ago. All our names are listed on the title. Mom lives in Texas but we live in Colorado. The family has taken care of her for four years but can't continue as her alzheimers gets worse and worse. I have her Power of Attorney for the financials. If she is in a Medicaid nursing home until she dies can Medicaid require my husband and I to repay all the Medicaid costs before she dies?

I was gifted the deed to my mom’s home in 2014 (3 years ago next month) while totally disabled. I have returned to work 8 months ago and my SSDI will end as my 9 month trail work period ends. I am still considered permanently disabled as this is major depressive disorder and GAD and PTSD from a stroke at age 42. Mom now needs full time nursing home. Will Home be penalized since I returned to work

My mom has been on Medicaid for years. She's now in a nursing home. When she dies, hopefully not for a long time, she will have nothing. So am I correct to assume they will not try to recover anything? Her hubby left her many years ago and she never divorced . My sister has poa, will they go after him? I don't understand these laws but I know there's nothing free but if she basically living in the system she not able to pay anything back. I hope it doesn't fall on me.

That should say, "....estate recovery will be deferred if you MEET the hardship exclusion..." The edit option is not available on this post.

This statement is incorrect in Michigan: "There will be no recovery made against the exempt home of the Medicaid recipient (i.e., it will not have to be sold to pay back the state) in either of these two scenarios..." (and goes on to explain the sibling/child caregiver scenario).

In Michigan, yes, estate recovery will be DEFERRED if you don't meet the hardship exclusion as a caregiver sibling or child, but recovery will not be waived for that exeption. In other words, what will happen is they may not demand sale of the home immediately to repay MERP - but they will defer it until you leave the home or die yourself - *then* they will take it.

I'm living this situation right now - Mom and Dad made out a will that said the 4 of us kids should split whatever was left when they passed away. Unfortunately, they didn't understand MERP, which was enacted in Michigan in 2007, at which point Mom and Dad were both up in years and in poor health - so they either didn't hear about it or simply didn't know. If they had known, I'm sure they would have done something about it.
Now I'm stuck trying to convince the state that this house is not worth recovery due to the huge cost of repairs that are needed and the low value of the house to begin with. I've had estimates done on the roof and other repairs needed, had a comparative cost analysis done by a real estate agent and have to submit all this to the state to see if they will waive recovery based on those facts and the fact that I was a caregiver for Mom and meet the child caregiver requirements. In my gut, I feel that they will probably still want to move ahead with recovery.

I don't begrudge the state the ability to recover their money. I do, however, begrudge the thought of living in a home where I was abused as a child, pouring money into it for incredibly expensive repairs, and then ending up having to sell it and give the money to the state anyway, after all is said and done. If they move ahead with recovery, I will probably make the minimum of repairs needed and then move in a few years when I can save up enough to do so. I'm sure this is not at all what Mom and Dad wanted, but we have no choice.

My mother passed in December and now I received a recovery letter from Texas Medicaid. They have since said they will not pursue recovery if there is a disabled child of any age. I have a 69 year old brother who is disabled and lives in an assisted living home on Medicaid. My question is: if he receives this disabled child status, will that affect his Medicaid assistance?

Only in America, where parasitic shareholders suck insane profits off the old and the sick... so that when you die, everything you worked for is gone. This does not happen in other countries people, wake up.

In New York State a Medicaid recipient has to be given written notice at application or renewal of medical recovery laws. I just don't see where they informed the applicant of this?

Is there a way of finding out how much medicaid will take from my mom's estate before filing for administrator of estate?

Ok thanks, I can show those expenses!

Hello, pamstegma, thanks, I had read that info. Do you know if there a statue of limitation and that's been a couple of year and much of the funds went for rent and living expenses? Have you gone thr this situation?

peewee2, The 30K must be accounted for. If she spent it on her own care, fine. If she gave any away, it must be given back BEFORE you apply for Medicaid. They look back five years at her finances.

Yes they can. You should buy the house if you want to keep it.

Mom home was sold for 30K in 2014. She is in the first 21 days and afterward to receive long term care. Will the proceeds from this home need to be repaid to the state?

No, spouse is not responsible for the bill. The Medicaid recovery is only on her estate, not his.

Does anyone know if a spouse has deceased, had Medicaid QMB was in the nursing home when she passed. They had nothing no home the truck was broke down, is the spouse responsible forever for the bill if he buys another home down the way if he ever can, will they hold him responsible for the nursing home bill even tho he had nothing??

IlovemyPug, if she had no assets, there is nothing to pay the state with. That is pretty straight-forward. She lived in a house you own, right? I would respond immediately simply explaining that she had no assets other than $x cash in a bank account at the time of her death.

If the pursue this then I'd consult an Elder Law attorney.

I'm sure a computer spit out that form letter and that everyone in your circumstances gets one. That doesn't mean you owe anything. Don't panic and respond promptly.

My Mother died 4 months ago. The state sent me a letter wanting repayment. Mom was on Medicaid and had no assets. She lived with me. I was her caregiver for 17 years. She was legally blind and was unable to walk since she had several strokes. She was bedfast. I don't know what to do. She had only a few dollars left in her checking account, when I closed it out. She only had social security to live on. She also received foodstamps. State says I have 15 days to respond. My Father died almost 5 years ago, complications from Parkinsons disease. He didnt have assets either. What do I do?

Fitzpatrickvl, Depending on what state they lived in, some States are slow to take care of recuperating costs spent for assistance.
Sometimes, extremely slow...
One old friend who was living in WA, was married to his [3rd or 4th?] wife of several years, here. As he lay bedridden and slowly dying, the State of CA found him and started garnishing his Social Security [the little he had], to repay welfare assistance/child support paid to his 1st ex-wife, over 40+ years previously. Even his kids from that marriage, were astonished! He'd received no notices from State of CA in all that time. Then, to compound things, CA also tried to garnish his current wife's Social Security.
It was finally straightened out, but not before it placed both of them in a very tight spot of almost losing the 5th wheel trailer they'd been reduced to living in.

So...it's possible the State might not do anything right now, and hasn't for your Mom yet....but that's not to say they might not try to do something months or decades later. At that point, they might try to find family to see if there is any money to mine.
OR...you can contact them to ask....but talk with an elder law attorney first, to make sure what the State laws are, regarding garnishing children's wages to repay parent's DSHS/Medicaid help, and what you might need to do to protect your own income or assets, if possible.

My mom was on medicaid for 5 months in 2007 when she died. In 2015 my dad was on medicaid for 4 months. When he dies does the estate need to pay back medicaid for mom?

There is a son or daughter (of any age) of the Medicaid recipient who was living in the house for at least two years immediately prior to the date the recipient was admitted to the nursing home, who has continuously lived in the house since then, and who provided care to the Medicaid recipient prior to his or her entering the nursing home which permitted the recipient to delay entering the nursing home.

Does this happen to include Grandchildren who provided care and also met the time requirements? ie: Grandson or Granddaughter

If the government is going to try to collect money from the property of one who has died, how long do they have to file a claim against the property? I'm trying to figure out how long we maintain everything not knowing if it is ours or if it belongs to the government. Mom passed on 1/2/16

I know someone that just buried that Father 2 weeks ago. They are now dealing with this. He wants free legal consultation asap. Thank you.

Great article.