Medicaid is the government program that helps seniors and others pay for long term care. However, it’s not always free, explains the article “What Is Medicaid Estate Recovery?” from AOL.com. The Medicaid Estate Recovery Program (MERP) is used by states to recover costs from estates with funds. The goal of Medicaid estate recovery is to make the program more affordable for the government, but it can have a severe impact on the estates of Medicaid recipients.
Seniors are generally eligible for Medicare when they turn 65. This program pays for many healthcare expenses, but not for long-term care in a nursing home. Medicaid can be used when someone does not have ample long term care insurance or money to pay for long-term care out of pocket. Medicaid can also be used for long-term or nursing home care, if steps have been taken to protect assets. This usually includes strategies, like Medicaid Asset Protection Trusts (MAPT).
A federal law that passed in 1993 (the Omnibus Budget Reconciliation Act) requires states to attempt to seek reimbursement from a Medicaid beneficiary’s estate under certain circumstances. Some of the costs that the state may try to recover include:
- Nursing home costs
- Home and community-based services
- Medical services received through a hospital where the recipient is a long-term care patient
- Prescription drug services for long-term care recipient
The recovery program lets Medicaid pursue any eligible assets in the Medicaid recipient’s estate. While this depends upon where you live, any assets that are part of the probate estate could be attached, including:
- Bank accounts
- Your home or other real estate
- Vehicles or other real property
Unlike New York, some states also allow Medicaid to recover assets that are not subject to probate, including jointly held accounts, Payable-On-Death (POD) bank accounts, real estate owned in joint tenancy with right of survivorship, living trusts and any other assets that the Medicaid recipient had a legal interest in.
The elder law attorneys at Kurre Schneps LLP can guide you regarding the types of assets New York can pursue and will help you understand what planning can be done to avoid a Medicaid estate recovery claim.
Note that while Medicaid cannot take the primary residence while the recipient is still living, a lien can be placed on the home. If the recipient passes away and a beneficiary inherits the home, the beneficiary may not be able to sell the property until the lien has been satisfied.
Strategic planning can help you or loved ones avoid the financial impact of Medicaid estate recovery.
Click here to request a consultation with an experienced medicaid estate recovery attorney in Long Island.
Reference: AOL.com (February 5, 2021) “What Is Medicaid Estate Recovery?”
