Medicaid Estate Recovery in Illinois

What is recovered

Illinois files a claim to recover cash and medical assistance paid under the AABD program.¹

The state never asks for more money than it paid for services.²

Who is subject to recovery

For recipients of AABD cash and medical assistance, a claim covers all cash assistance plus medical assistance paid after age 55. For recipients of AABD medical assistance only, it covers medical assistance paid after their 55th birthday.¹

For a recipient of AABD medical assistance only who resided in a long-term care facility, had been in a medical institution more than 120 days, and had a lien filed on their real property, a claim covers all medical assistance paid, regardless of age.¹

305 ILCS 5/5-13 makes the amount spent for a nursing facility inpatient of any age, or for a person aged 55 or more, a claim against the person's estate.³

When recovery is deferred or barred

No claim is satisfied while there is a surviving spouse, a child under 21, or a child of any age who is blind or permanently and totally disabled under Social Security requirements.²

Exemptions and protected assets

For deaths on or after July 1, 2022, 89 Ill. Adm. Code 102.210(h)(1) waives any claim against the first $25,000 of an estate.⁴

Undue-hardship waiver

HFS waives its claim, in whole or in part, where recovery would cause an heir or legatee undue hardship.²

89 Ill. Adm. Code 102.210(g) waives recovery where it would cause an heir or beneficiary of the estate to become or remain eligible for a public benefit program, such as SSI, TANF or SNAP.⁴

HFS also considers estate property that has been the site of a family business for at least 12 months before the death, is the heirs' primary income-producing asset and produces 50% or more of their livelihood, or heirs who could discontinue public or medical assistance if the state did not recover.⁵

A separate application must be submitted for each person requesting hardship consideration, returned with supporting documents.⁵

Governing law: 305 ILCS 5/5-13; $25,000 exemption 89 Ill. Adm. Code 102.210(h); hardship waiver 89 Ill. Adm. Code 102.210(g)

Hardship Waiver Application, with supporting documents

within 60 calendar days of the date stated on the Notice of Intent to File a Claim Against the Estate; Applications returned later than 60 days are not reviewed.⁵

1. 1.Liens and Estate Recovery (Illinois Department of Healthcare and Family Services)
2. 2.Guide to the Medicaid Estate Recovery Program (Illinois Department of Healthcare and Family Services)
3. 3.305 ILCS 5/5-13
4. 4.89 Ill. Adm. Code 102.210
5. 5.Hardship Waiver (Illinois Department of Healthcare and Family Services)