Medicaid estate recovery refers to the legal process by which state Medicaid agencies seek reimbursement from the estate of a deceased Medicaid recipient for certain benefits paid during the recipient’s lifetime. This generally applies to long-term care services received. For example, if an individual received Medicaid-funded nursing home care, the state may file a claim against their estate after their death to recover the cost of that care.
Understanding the rules governing Medicaid estate recovery is critical for individuals planning for long-term care needs and for their families. This understanding allows for proactive planning, potentially preserving assets for heirs and ensuring financial stability for surviving family members. The policy stems from state and federal laws designed to recoup some costs associated with taxpayer-funded assistance programs, contributing to the overall fiscal health of Medicaid systems.
