The Dark Truth about Medicaid buried in the fine print
After you pass away, the government attempts to take your house. This is called ‘Medicaid Estate Recovery’
Under federal law, states are required to recover certain Medicaid costs after a beneficiary’s death through Estate Recovery
“Medicaid isn’t free and it’s not only funded by taxpayers. Once you apply for Medicaid, you’re essentially signing a lien onto your estate and the state will collect on this as soon as you pass away. And these costs are not cheap. If you’re on long-term care or nursing care, this can accumulate at $5,000 to $15,000 per month. Nobody talks about this because it’s buried in the fine print.”
After a Medicaid recipient dies, states may seek to recover costs paid for certain Medicaid services (e.g., long-term care, nursing home stays, home health services) from the recipient’s estate
“The state is relentless at going after assets”
The Dark Truth about Medicaid buried in the fine print
After you pass away, the government attempts to take your house. This is called ‘Medicaid Estate Recovery’
Under federal law, states are required to recover certain Medicaid costs after a beneficiary’s death through Estate… pic.twitter.com/ryiSBB9TfP
— Wall Street Apes (@WallStreetApes) April 20, 2025
The Medicaid Estate Recovery Program (MERP) allows states to recover costs for Medicaid services from the estate of a deceased beneficiary. Here’s how it works:
- Who is Affected: Estate recovery applies to Medicaid beneficiaries who were 55 or older when they received benefits, or those of any age who were permanently institutionalized.
- What Can Be Recovered: States can seek repayment for costs related to long-term care, home and community-based services, and related hospital or prescription drug services.
- The Estate: Recovery is typically limited to the beneficiary’s estate, which often includes their home. However, if the deceased has a surviving spouse, a minor child, or a disabled child, the estate is generally protected from recovery during their lifetime.
- Exceptions and Protections: Some states offer exemptions or allow planning strategies, such as irrevocable trusts, to protect assets from estate recovery.
- State Variations: The rules and enforcement of estate recovery vary by state, so the impact depends on where the beneficiary lived.
Sources:
https://www.medicaidplanningassistance.org/can-medicaid-take-my-home/
https://www.agingcare.com/Articles/medicaid-repayment-of-nursing-home-estate-recovery-150497.htm
https://www.ncoa.org/article/what-is-medicaid-estate-recovery-and-how-does-it-work/
