Healthcare and health insurance in the United States is extremely expensive. Many people need to be on Medicaid in order to pay for their healthcare. Medicaid is a program funded by the State and Federal government that pays for healthcare for people with limited income.
But that healthcare is not free and under the Estate Recovery Program, the State of Michigan can seek reimbursement for certain expenses it paid on behalf of Medicaid recipients. MCL 400.112(g) governs the establishment of the Estate Recovery Program and outlines many procedures and exemptions. The establishment of the program is stated in the first two sections of the statute and states:
“Subject to section 112c(5), the department of community health shall establish and operate the Michigan Medicaid estate recovery program to comply with requirements contained in section 1917 of title XIX. […] (2) The department of community health shall establish an estate recovery program including various estate recovery program activities” Section (e ) determines “Under what circumstances the estates of medical assistance recipients will be exempt from the Michigan medicaid estate recovery program because of a hardship”.
Everyone who receives Medicaid will NOT be subject to the Estate Recovery Program. The Estate Recovery Program only applies to Medicaid recipients who are 55 years of age or older (at the time they received benefits) and have received certain services. Those services include all care provided in a nursing home, MI Choice Waiver services, The PACE Program, home help services and expenses related to Medicaid covered hospital expenses.
If the Estate Recovery Program applies to you, when Michigan Department of Health and Human Services (MDHHS) learns of your death, they will send notice of their claim to your estate representative or heirs. Unless an exemption or hardship applies, MDHHS will seek to recoup their expenses from all assets within your estate, including your home.
There are many ways to protect your assets from the Estate Recovery Program, but only with proper planning. To discuss your options, contact our office today at 269-381-4471.
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