Son Loses Mom’s House Because of Poor Medicaid Choices
Toni,
I have a client, Joshua, who just received a bill for his mother’s long-term care, paid by Medicaid in the state of Texas. Her care was provided at her house – not a nursing home – during the last few years of her life. No one informed Joshua that the state was running a tab of all the healthcare expenses that Medicaid paid and wanted to be reimbursed after his mother’s death.
Medicaid says the $65,000 medical bill must be paid in full. Joshua recently received a document from the Medicaid Estate Recovery Program (MERP) saying that Medicaid is filing a lien against his mother’s house (where Joshua currently lives) until the money is paid back.
Americans need to be aware of their state-specific Medicaid rules when receiving extra health care – especially if you or your family member owns a home!
Thanks,
Chuck, Elder Law Attorney, and Toni Says reader
Hello Chuck,
Everyone should know about the Medicaid Estate Recovery Program (MERP) for their specific state by visiting www.medicaid.gov/medicaid/eligibility/estate-recovery/index.html.
The website says, “State Medicaid programs are required to recover certain Medicaid benefits on behalf of a Medicaid enrollee. For individuals age 55 or older, states are required to seek recovery of payments from the individual’s estate for nursing facility services, home and community-based services, and related hospital and prescription drug services.”
During a Toni Says consultation, confused adult children are shocked to discover their state has taken a lien on their parents’ house because of long-term care health care costs that the state paid.
Chuck, I am sure your client was astonished to find out that the state of Texas wants the $65,000 that Medicaid spent for his mother’s care returned, even though the care was at home and not in a nursing home.
All claims against an estate, including MERP claims, must be paid before the property can be distributed as specified in a will. The state does not, however, require an heir to sell the deceased recipient’s homestead (house) if the claim can be paid by other funds. But if not, then the heir may have to sell the house or the state will file a lien against the house, such as your client is experiencing.
The letter sent to the enrollee’s estate states that the amount recovered by Medicaid will not exceed the value of the estate’s assets, if any. If there is no money or assets in the estate, then there is nothing to recover.
Readers, now you know how Medicaid’s Long Term Care services operate!
My advice to readers whose loved one is receiving Medicaid benefits would be to explore their options and work out a schedule with family members to take care of their loved ones. This way you can protect all that they have worked so hard to accumulate.
Medicaid and Long-Term Care Planning To-Do List
- Explore long-term care options for yourself or an elderly parent or family member while still in decent health to help avoid using Medicaid LTC to protect your financial assets.
- Seek the advice of an elder law attorney that can help with proper Medicaid planning.
- Do proper planning. No one wants their adult kids or grandchildren to be their caregivers and take care of their activities of daily living such as bathing, dressing, bathroom problems, etc.
- Do not rely on advice from well-meaning friends who are not experts in the Medicare/Medicaid arena.
Readers, it is important to understand that traditional long-term care insurance plans offer more flexibility and options than Medicaid. Medicaid long-term care is available for those living on a limited income.
Toni King, author of the Medicare Survival Guide Advance edition, which is a simple guide that puts Medicare in “people” terms, is on sale at www.tonisays.com. Email questions or schedule a “Confused about Medicare Workshop” for your organization or company by emailing info@tonisays.com or call 832/519-8664.
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Originally published February 22, 2024
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