North Carolina and Other States Can Seize the Estates of Medicaid Recipients

By HERE News

Picture this scenario: You’ve lost a loved one and inherited that person’s home. But while you are still grieving the loss, you’re informed the state is seizing that property you just inherited. It can happen if your loved one was on Medicaid, as one Charlotte family found out — the hard way.

The Case of Cleveland Hager

Safiya Charles wrote about it for Type Investigations and the Assembly, shedding light on the story of Cleveland Hager, a Charlotte woman who passed away in 2020. Ms. Hager, an active elderly woman who had been enrolled in Medicaid for many years, transitioned from living independently to needing care after an accidental slip and fall at home. She moved into a nursing home, but the pandemic disrupted her social connections, leading to her unexpected passing.

Following her death, Ms. Hager’s family received a six-figure bill from the state for the cost of her care over a two-year period, a shocking revelation that left them reeling.

Medicaid Estate Recovery Program

The Medicaid Estate Recovery program allows states to recoup money spent on long-term services and support for Medicaid recipients. This includes expenses related to nursing home care, home-based caretaking services, and prescriptions. While Medicaid exempts homes as assets during qualification, the Estate Recovery program enables states to seize these assets from deceased Medicaid recipients to settle Medicaid debt.

Can People Appeal?

Individuals have the right to appeal by requesting an undue hardship waiver within a specified timeframe. Criteria for an undue hardship waiver may include having a blind or disabled child living in the home or the estate’s sole income-producing asset being at risk. However, navigating the appeal process can be challenging, especially for those already facing financial constraints.

Equity Concerns

There are equity issues surrounding the Medicaid Estate Recovery program, as it disproportionately affects people of color and those with limited financial resources. The program’s structure varies by state, leading to disparities in asset seizure depending on the individual’s location.

Call for Change

Congresswoman Jan Schakowsky introduced a bill proposing the end of the Medicaid Estate Recovery program. Advocates argue that the program’s minimal financial impact on funding Medicaid services does not justify the burden it places on families already grappling with loss.

Update on Cleveland Hager’s Family

Despite the family’s approval for an undue hardship waiver, they faced challenges as Kendra, Ms. Hager’s granddaughter, was deemed ineligible for support. This development has caused frustration and anxiety within the family, highlighting the complexities of the Medicaid Estate Recovery process.

Stay tuned for further developments on this evolving story.