Understanding Medicaid Estate Recovery

Understanding Medicaid Estate Recovery: What It Means for Your Family Home

One of the most common concerns we hear at Hurley Elder Care Law is: “Will I lose my home if I apply for Medicaid?” The fear often stems from confusion around Medicaid Estate Recovery—a program that can affect your assets after a loved one passes away. Let’s break it down simply.

What Is Medicaid Estate Recovery?

Medicaid Estate Recovery (MER) has been in effect in Georgia since May 3, 2006. After a Medicaid recipient passes away, the state may try to recover the costs it paid for their care from their estate, including property like a home.

When Does It Apply?

Recovery is pursued when:

• The estate is valued at $25,000 or more.
• The recipient was 55 or older and received nursing home care, home- and community-based services, or was enrolled in a Medicaid waiver program.
• The recipient was in a long-term care facility at any age with Medicaid-paid services (namely room and board).

Are There Delays for Medicaid Estate Recovery?

Yes. Medicaid Estate Recovery may be delayed if the recipient has:

• A surviving spouse
• A child under 21 or one who is blind or disabled according to Social Security guidelines.

Are There Exceptions that will avoid Medicaid Estate Recovery?

• A sibling who lived in the home and provided care before institutionalization
• A child who lived in the home providing care for at least two years before institutionalization and delayed the need for care

These must be accomplished either prior to or concurrently with a Medicaid Application.

What Can You Do to Protect Your Assets?

Good planning makes all the difference. Suppose your loved one is applying for or already receiving Medicaid. In that case, legal strategies may be available to help protect your home and other assets—but these must be handled carefully to avoid penalties. It is always wise to consult a Certified Elder Law Attorney for Medicaid Planning and when property is owned.

Over the past four weeks, we have dedicated our blog to explaining the basics of Nursing Home Medicaid and Medicaid Planning. Nobody expects you to know the details of this complicated process. But we wanted to show you that there are always options to protect your hard-earned income and assets. Call our intake specialist today at 404-843-0121 with your questions and to schedule an appointment with our experienced attorneys. They are happy to create a plan tailored to your family’s needs and take this burden off your mind. Please note that this blog references the most common MER issues, but is not exhaustive.