Medicaid can be a great resource for many people. However, Medicaid Estate Recovery (MER) can very easily be overlooked and lead to blindsiding loved ones after a Medicaid recipient passes away.
What is Medicaid Estate Recovery?
MER is a program in Ohio that allows the state to recover certain Medicaid costs from the estates of deceased beneficiaries who received Medicaid benefits after the age of 55.
The Ohio Department of Medicaid is required by federal law to pursue estate recovery, which can include assets such as real estate, bank accounts, and other property*.
READ MORE: Medicaid – The Basic Planning Techniques
What if there is Medicaid Estate Recovery claim against the estate?
It’s not uncommon for a probate fiduciary (administrator or executor) to encounter a MER claim against a decedent’s estate. Estate fiduciaries need to be careful not to dismiss these claims – these claims don’t “go away.” Luckily, there are some options in how to address MER claims.
First and foremost, if a MER claim is found, a fiduciary should notify their attorney. The exact MER claim amount should be verified, and its calculation should be determined. Depending on the circumstances, exemption options may apply. Occasionally, the fiduciary or attorney can negotiate with the state. In some cases, the state Medicaid agency might be willing to settle or reduce a claim amount.
READ MORE: What is Long-Term Care Planning?
MER can be a complex and potentially costly process for families, highlighting the importance of proactive planning and seeking professional advice to navigate the rules and regulations surrounding Medicaid benefits.
* See 42 USC § 1396p(b)(1)
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