What happens to Medicaid debt after a parent dies?

Medical debt: If your parent received Medicaid, the insurance program for people who can’t afford care, the state where your parent died can recover the payments it made from the time your parent was 55 until death.

What was the date of my mother’s death?

My mother died Dec. 20. It was a horrible year for her (and my brother & I) and ended with a fall that broke bones, caused serious complications and excruciating pain for her last 2-1/2 weeks of life. I’ve been exhausted (along with her) from the year and am still very scattered over her death.

Can a dead parent’s house be used for Medicaid?

A house is the only substantial asset a person may keep and still qualify for Medicaid. So the state may place a lien on your parent’s home to recover payments. Some states, however, may be willing to negotiate and let the executor pay less than the total due, said attorney Howard Krooks of Elder Law Associates PA.

Who is responsible for paying medical bills of a deceased parent?

If your parent wasn’t on Medicaid, but died with unpaid hospital or doctor bills, the estate is responsible for paying them if it has the money. But check state law. Close to 30 states have what’s known as “filial responsibility” statutes.

What happens to Medicaid after a person dies?

But after the person’s death, the state Medicaid program can try to collect medical costs from the deceased person’s estate. This is called “estate recovery.”.

How much did Medicaid pay for Robert’s funeral?

At the time of his death, the state Medicaid agency had paid $24,000 for his nursing home care. In addition to this claim, there was a total of $10,000 in funeral bills and costs for probating his estate. Mr. Robert’s son received $41,000 after all the claims were paid.

What are the rules for estate recovery for Medicaid?

What is estate recovery? OBRA ’93 requires each state to recover the costs of nursing facility and other long-term care services from the estates of Medicaid beneficiaries. This means that states must try to get reimbursed for money they spend through their Medicaid programs.

What happens if both spouses are Medicaid recipients?

If both spouses were Medicaid recipients, the state will try to recover the funds in which it spent for long-term care costs. If only one spouse was a Medicaid recipient and passed away prior to the death of the non-Medicaid spouse, the state may or may not attempt to recover the costs for care. (This depends on the state in which one resides).