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They become debts of the estate.

For those on facility Medicaid, they have basically become impoverished to be eligible for NH Medicaid on the first place. Their - if an widow or widower- are limited to 2k in non exempt assets. Unless they had a home & continued to own it or had thier life insurance as beneficiary of heir estate, they die without assets and without really any redress for creditors owed. It’s unsecured debt and written off.

Unless family signed to be personally financially responsible.

If they actually continued to own their home (an exempt asset), then the home becomes an asset of their estate. Then assuming there’s a valid will and probate gets opened, which then means anyone having a claim against the estate - like a NH, a physician, PT, hospital, Medicaid- will need to follow the rules for probate as to becoming a claim against the estate. Debtors do file but my experience is that most individuals don’t but larger companies do as they have a system in place for collections.

My mil died while still Medicaid Pending. Bil dogged the application and she was finally approved retroactively almost a year after death. If you could be held financially responsible, I’d suggest you file an appeal on the Medicaid decision.
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The nursing home administration office will first see if payment can be paid by any other secondary insurance provider if provided. If this fails, if there was a relative or guarantor who signed the patient in the nursing home, the balances will be sent to whoever name is listed. Also, know that the Medicaid application can be appealed.
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The patient's estate is liable for outstanding debts, generally speaking. Would it be worth appealing against Medicaid's decision? - I'm sure other forum members will know whether it is possible to do that retrospectively, on the applicant's behalf. Are you the patient's executor?
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