Medicaid Estate Recovery In New York

There are millions of people in the United States who seek long-term medical care toward the ends of their lives, with a majority of that being paid for by Medicaid. Long-term care, particularly in nursing homes, can be quite expensive, and the majority of those in Putnam County simply lack the funds to pay for it out of pocket. That said, far too many people are unaware that, after their passing, Medicaid has the right to seek reimbursement from their estate, in a process known as estate recovery.

Can Affect Estate’s Finances

Each state has their own Medicaid program, governed by state law, which oversees the granting of benefits and the recovery of funds (if applicable). In New York, the Social Services Law explicitly states that if you (1) receive services or benefits after the age of 55, or if you are (2) permanently residing in a medical institution like a hospice, Medicaid is entitled to try and recoup their outlay by seeking reimbursement from your estate.

As one might imagine, this can be a cruel shock to a decedent’s heirs if they were not properly informed. While no bequest can replace a loved one, it is understandable that a promised bequest being devoured by Medicaid could cause confusion and upset. In addition, the ultimate issue with estate recovery is that Medicaid might essentially impoverish the estate, leaving nothing for other creditors.

Exemptions Do Exist

While not every Medicaid expenditure qualifies for estate recovery, many types do from in-home nursing services to long-term patient care. In order to begin the process of estate recovery against a decedent, Centers for Medicare & Medicaid Services (CMS) or New York’s Office of the Medicaid Inspector General (OMIG) will file a claim against the deceased Medicaid recipient’s estate, essentially doing what any other creditor would do in a similar situation.

That said, there are exemptions to estate recovery, though some are context dependent. For example, a home is exempt from Medicaid eligibility (that is, it will not be counted when assessing a person’s means and whether they can receive care from Medicaid), but it is not exempt from Medicaid estate recovery (and can thus be subject to seizure). However, Medicaid has a long-standing policy to not pursue estate recovery if it means that it will cause “undue hardship” to a surviving spouse or child.

Contact A Mahopac Medicaid Planning Attorney

Medicaid estate recovery can be an unexpected hardship for beneficiaries if they are not properly informed of its existence, but it may be possible to avoid the process if your estate is structured appropriately. A Mahopac Medicaid planning attorney from Meyer & Spencer, PC can help answer any questions you may have about the process. Call or text our office today at (845) 628-0009 to schedule a consultation.

Source:

newyork.public.law/laws/n.y._social_services_law_section_369