Medicaid Estate Recovery in Arkansas

What is recovered

MS H-600 recovers medical payments correctly made from August 13, 1993 and later for care in a nursing facility, an ICF/IID, or a home and community-based waiver program.¹

Who is subject to recovery

Individuals 55 or older who received nursing facility, ICF/IID, or waiver services.¹

Individuals of any age who were permanently institutionalized in a nursing facility or ICF/IID and had to pay all but a minimal amount of their income for care.¹

When recovery is deferred or barred

MS H-630 does not waive recovery but postpones it while there is a surviving spouse, a surviving minor child, or a child of any age who is blind or permanently and totally disabled. DHS may recover once those individuals die or move out.¹

Recovery is also postponed while a caregiver son or daughter who lived in the home for the two years before the recipient entered care, or a sibling who lived in the home for the year before, still lives there.¹

Exemptions and protected assets

MS H-600 makes no recovery from interests acquired through a properly executed and recorded beneficiary deed (Ark. Act 570 of 2021), once documentation is given to the entity seeking recovery.^{1, 2}

Long-term care partnership policies

Resources protected by a Qualified Long-Term Care Insurance Partnership Policy are never recovered.¹

When the state does not pursue a claim

Recovery is not made where it is not cost effective.¹

Undue-hardship waiver

The DCO Hardship Waiver Committee weighs whether the asset is a beneficiary's sole income-producing asset, and whether a beneficiary would become eligible for public benefits without the estate proceeds.¹

The committee also weighs whether the inheritance would let a beneficiary leave public benefits, whether the asset is a home worth 50% or less of the county average home price at the date of death, and other compelling circumstances.¹

How the state files its claim

The DHS Third Party Liability Unit mails a Notice of Estate Recovery (form DHS-20) to the personal representative, or to the distributee of a small estate.¹

The claim is signed by the Director of the Division of Medical Services and filed with the probate clerk, with a copy mailed to the personal representative, the estate's attorney, or the distributee.¹

Governing law: Ark. Code Ann. 20-76-436; DHS Medical Services Policy Manual MS H-600 – H-730 (rev. 08/29/2022)

Application for an undue-hardship waiver by the personal representative or distributee

within 30 days of receiving the DHS-20 Notice of Estate Recovery¹

Appeal of a hardship-waiver denial

within 30 days of receiving the decision¹

Probate clerk

Receives the DHS claim against the estate for filing¹

1. 1.DHS Medical Services Policy Manual, MS H-600 (Estate Recovery) and MS H-700/H-730 (Undue Hardship Waiver), rev. 08/29/22
2. 2.Arkansas Act 570 of 2021 (HB1162)