The Estate Recovery Program is a state initiative designed to recoup funds spent by the Medicaid program on behalf of deceased beneficiaries. This program allows state governments to recover costs associated with long-term care provided to individuals who received Medicaid benefits, particularly for nursing home care and other medical expenses.
Under the Estate Recovery Program, states may file claims against the estates of deceased individuals who received Medicaid benefits during their lifetime. The process typically occurs after the individual has passed away and their estate is being settled through probate. States generally pursue recovery from estates that exceed a certain value threshold, which may vary by jurisdiction.
For example, if a Medicaid recipient received $50,000 in benefits for long-term care, the state may place a lien against the deceased’s estate to recover that amount before assets are distributed to heirs or beneficiaries. However, there are specific exemptions and protections in place; for instance, states often cannot recover from the estate if the deceased is survived by a spouse, child under 21, or a disabled child.
In Texas, the Estate Recovery Program operates under the Texas Health and Human Services Commission and follows state laws that outline the conditions and procedures for recovery. It is important for individuals planning their estates in Texas to be aware of this program, especially if they anticipate utilizing Medicaid services, as it may affect their estate planning decisions.
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