Medicaid Estate Recovery in Arizona

What is recovered

ALTCS long-term care services: nursing home, assisted living, adult group home, and home- and community-based services. Recovery does not reach all Medicaid coverage.¹

Who is subject to recovery

Members who received ALTCS nursing home or home- and community-based benefits at age 55 or older, on or after January 1, 1994.²

Costs for benefits provided before the member turned 55 are not included in the claim.²

What counts as the estate

The claim is filed only against property the ALTCS member owned at death that is subject to a small estate affidavit or probate.¹

A home is reached if it was solely owned, owned jointly without right of survivorship, or owned jointly with right of survivorship where the joint owner is already deceased. An annuity is reached if it too passes through a small estate affidavit or probate.¹

How the state files its claim

A.R.S. § 36-2935(B) requires a member's personal representative to notify AHCCCS of the estate or property within three months after the death if the member was at least 55 and AHCCCS has not already filed a statement of claim.³

HMS files a Demand for Notice with the Superior (Probate) Court and sends the personal representative a Notice of Intent to File a Claim Against the Estate and an Estate Questionnaire.²

When recovery is deferred or barred

AHCCCS delays recovery where there is a surviving spouse, a surviving child under age 21, or a surviving child of any age who is blind or disabled under SSA or SSI criteria. Proof of the exemption must be provided.¹

Undue-hardship waiver

Under Ariz. Admin. Code R9-28-911, an heir who lived in the home for at least the 12 months before the death, still lives there, plans to stay, and owns no other real property may qualify for a waiver.¹

The heir submits a completed application and all supporting documentation to HMS so that it is received within 30 days of the date shown on the Notification of the AHCCCS Claim Against the Estate. AHCCCS decides within 60 days of receipt of a completed application.¹

Governing law: A.R.S. § 36-2935; Ariz. Admin. Code R9-22-1006, R9-28-901, R9-28-911, R9-28-912; 42 U.S.C. 1396p

Personal representative's notice to AHCCCS of the estate or property

three months after the member's death³

Undue hardship waiver application, received by HMS

within 30 days of the date shown on the Notification of the AHCCCS Claim Against the Estate¹

Health Management Systems (HMS)

Recoveries for AHCCCS, including claims against a member's estate, liens, and hardship applications¹

Phone: 1-602-954-8380

Toll-free: 1-888-378-2836

1. 1.AHCCCS Medicaid Estate Recovery Program brochure, DE-810, Rev. 07/2026
2. 2.AHCCCS Eligibility Policy Manual 1901-A, Estate Recovery Program Overview
3. 3.A.R.S. § 36-2935