Asset/ estate recovery; In order to qualify for Medicaid, would the wife have to move out of the house and sell it?

how does medicaid determine the amount to recover. My mother is in her 3rd year of receiving Medicaid EPD waiver services

Medicaid doesn't recover costs. Wish they did. If a person is on Medicaid and their house is sold, Medicaid will stop until the proceeds are spent down. Once this happens, I think Medicaid needs to be refiled. It would be so much easier if Medicaid would just offset what has already been spent on their behalf. But they don't. A lean is put on the house at the owners death and has to be satisfied when sold.

Medicaid will also try to recover costs if the house is sold while spouse is still alive.

Does she have to move out? No!

Will the state try to recover their costs of care, after the wife dies? Yes. The recovery means the house most likely cannot be passed on to heirs (although there are exceptions). It does not impact the community spouse while she is alive.

Generally, the spouse can stay in the house. There will be a lien put on the home, but there will be no estate recovery until both husband and wife are deceased. Contact your state Medicaid office or an elder law attorney for assistance.