Medicaid Estate Claims: Perpetuating Poverty, Inequality for a Minimal Return

From JUstice in Aging: For Complete Post, Click Here…

CONGRESS SHOULD END MANDATORY MEDICAID
ESTATE RECOVERY


Federal law requires state Medicaid programs to seek repayment of specified Medicaid benefits, even if the state would prefer not to seek such recovery. The Medicaid program’s claim is enforced against the heirs of now deceased persons who relied on Medicaid, forcing the heirs in many cases to sell a family home that otherwise would have been passed down.

The burden of estate claims falls disproportionately on economically oppressed families and communities of
color, preventing families from building wealth through home ownership, which has been historically denied to communities of color through discriminatory public policy. The burden also falls inequitably on families due to medical unpredictability – for example, because their family member developed Alzheimer’s Disease, needing months or years of nursing home care or equivalent home and community-based services. This unpredictability is exacerbated by inequities in our health care system that particularly harm lower-income and older adults of color.

All these factors contribute to estate claim collections being unfair and societally counterproductive.

Congress should amend Federal law to eliminate Medicaid estate claims. Alternatively, the law should be amended so that states have the choice of whether to use Medicaid estate claims, as recommended in a recent report to Congress by the Medicaid and CHIP Payment and Access Commission (MACPAC).

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