McNamee and Company Guides Clients Through the Medicaid Estate Recovery Program
Medicaid Estate Recovery rules are complex, but they're also important to understand if you or a loved one are receiving benefits. Here, Northeast Ohio estate planning attorney Michael McNamee briefly outlines key points to consider. To learn more, contact McNamee and Company to schedule a consultation.
What Is Medicaid Estate Recovery?
If you have a loved one who is receiving Medicaid for the costs of long-term care services, then upon the passing of your loved one, their estate may be subject to the Medicaid Estate Recovery Program.
In the State of Ohio, the Medicaid Estate Recovery Program (referred to as “MER”) is authorized by O.R.C. 5162.21, which authorizes (usually through the Attorney General's Office) the recovery of the cost that Medicaid paid for the long-term care services of the deceased individual. Only the assets of the deceased individual or possibly the spouse (upon the death of the spouse) are subject to recovery.
Who Is Subject to MER?
Medicaid recipients who are age 55 and older and those of any age who were permanently institutionalized in a nursing facility are subject to MER. Any Medicaid services provided prior to January 1, 1995, are exempt from recovery.
What Assets Are Subject to MER?
Any Assets such as bank accounts, stock(s), vehicles, or real property (house or vacant land) are subject to MER whether these assets are in the probate estate of the deceased or are in a Revocable Living Trust. Even if the value of the assets is relatively small, they are subject to the MER.
The triggering event of the MER is upon the Medicaid recipient's death and the death of the surviving spouse and there are no children under the age of 21 and there are no surviving children who are disabled or blind[1].
The Home and MER
If there was a house owned by the Medicaid recipient, then upon the death of the recipient, this house is subject to MER if the spouse of the Medicaid recipient is deceased or upon the death of the spouse.
When the Home Is NOT Subject to MER
Under certain circumstances, a house is NOT subject to MER if the following are met:
- There is a child who is under the age of 21 residing in the house.
- There is a child who is considered blind or disabled residing in the house.
- A sibling of the Medicaid recipient who lawfully resides in the home and for at least one year before the Medicaid recipient entered a nursing home, the sibling resided in the house and continued to reside in the house since that time.[2]
- A child of the Medicaid recipient who provided care to the individual which delayed the individual entering the nursing home and the child resided in the home for at least two years immediately before the date of the individual entering the nursing home. [3]
What About the Final Expenses of the Medicaid Recipient?
The following expenses can be paid first before turning over any assets to the State for MER. These expenses include the costs and expenses of administration, such as reasonable attorney fees, funeral and burial expenses (there is a limit to these amounts), final medical expenses, allowance for support for minor children or surviving spouses, and taxes.
Is There a Statute of Limitations for MER?
The State of Ohio generally has 1 year to file a claim and seek assets under the MER program from the estate of the deceased Medicaid recipient. However, this time period may actually be longer than 1 year.
A recent Ohio Supreme Court Case in re Estate of Centorbi [4] provided that the ‘Administrator of Medicaid estate-recovery program must present a claim for estate recovery within either 90 days after filing of reporting form by person responsible for the estate or within one year after decedent's death, whichever is later – Limitations periods operate in the alternative, with later of two designated events constituting the deadline'.
The Medicaid Estate Recovery Program can be rather confusing so if you have any questions about this subject or about this article please contact our Firm.
[1] O.R.C. 5162.21 (C) (1)
[2] O.R.C. 5162.21 (C)(2)(a)
[3] O.R.C. 5162.21 (C)(2)(b)
[4] 129 Ohio St. 3d 78-2011-Ohio-2267