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My Aunt is worried about her car (valued at roughly 3K) being taken as an asset after her death. She is a California resident. This is the one thing she wants to keep in the family. Does Medicaid/Medicare actually do this...take a car and sell it to recoup some of the cost of having funded her while she was alive? They recently sent her a form about it, wanting to know if she still owns it.

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Medicare doesn't take assets for reimbursements. Medicaid does. You would need to check over the paperwork if your Aunt had, in fact, signed up to have Medicaid help pay for her care. It depends on how your State handles vehicles, as each State is different. Since the State did send her a form, then Medicaid is questioning the car.

Don't forget, the taxpayers are funding Medicaid, along with funds from the Federal government.
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