Michigan Medicaid Estate Recovery Update May 2011

VERY IMPORTANT NURSING HOME ALERT: MEDICAID

There have been two major Medicaid Law changes:  Estate Recovery and Jointly Owned Property.

Michigan’s Department of Human Services enacted the Estate Recovery Act which is scheduled to take effect June 1, 2011. Prior to this time, the principal residence was treated as an exempt asset.  Meaning, Medicaid will not force the patient to sell the home prior to obtaining nursing home benefits. Starting June 1, 2011 Medicaid will have the right to file a lien on the patient’s Probate Estate and get reimbursed from the Estate for the monies paid on the patient’s behalf while they were on Medicaid and living in the nursing home.  This means that if the house, or any other asset has to go through probate, Medicaid can have that asset liquidated and the money used to reimburse the State for the Medicaid benefits they paid out. 

The second change took effect May 1, 2011.  For as long as I can remember, jointly owned real estate property and stocks have been treated as unavailable assets to the patient on Medicaid.  Meaning, Medicaid can’t force the other owners to sell their interest, therefore, it never had to be sold.  Now, the patient’s share of that asset is treated as a countable asset which will prevent Medicaid eligibility. If you or your loved ones are currently in a nursing home or may need to go into a nursing home in the future please have them contact me Simasko Law Offices 586-468-6793.