Medicaid Estate Recovery in Illinois

Medicaid Estate Recovery in Illinois: key facts

Recovery scope

Cash and medical assistance paid under the AABD program. The state never asks for more than it paid for services, and for deaths on or after July 1, 2022 the first $25,000 of estate value is protected.

Who is subject

Recipients of AABD cash and medical assistance (all cash assistance, plus medical assistance paid after age 55); recipients of AABD medical assistance only (medical assistance paid after their 55th birthday); and recipients 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 — for them a claim covers all medical assistance paid, regardless of age.

Recovery deferred

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.

Hardship waiver

HFS waives recovery, in whole or in part, where it would cause an heir or legatee undue hardship — for example, an income-producing family business held at least 12 months that provides 50% or more of the heirs' livelihood, or where heirs would otherwise need public assistance. Apply within 60 days of the notice (89 Ill. Adm. Code 102.210).

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)