Medicaid Estate Recovery in Michigan

Medicaid Estate Recovery in Michigan: key facts

Who is subject

Beneficiaries who were 55 or older and received long-term care services on or after September 30, 2007. Long-term care includes nursing facility, hospice, and home and community based services such as adult home help, adult home health, MI Choice Waiver, and PACE.

What is recovered

Property that passes from the deceased to heirs through a probate proceeding. If a long-term care partnership policy asset disregard was used, recovery applies to assets whether or not they are subject to probate. "Estate" is defined in MCL 400.112h.

Services recovered

All Medicaid services provided after the beneficiary's 55th birthday, including non-long-term-care services, fee-for-service claims, and capitation payments. The claim is paid in the estate's order of priority, after items such as funeral expenses and costs of administration.

Recovery deferred

While a surviving spouse is living, while a child under 21 is living, or while a child of any age who is blind or permanently disabled is living. Recovery is also deferred while a caretaker who lived in the home and provided care for at least 2 years before the recipient entered a medical institution is living there, or while a sibling with an equity interest who lived in the home for at least 1 year before that admission is living there. Certain Medicare cost-sharing benefits are exempt.

Undue hardship waiver

May apply where the estate is the limited-income primary income-producing asset of survivors (such as a family farm or business) or a home of modest value (worth less than 50% of the county average home price). The applicant must pass a means test: household income below 200% of the poverty level for that household size and household resources below $10,000. A waiver application is processed only where a probate estate has been opened. No hardship is presumed where assets were diverted to avoid recovery (MCL 400.112g(3)(e)(iii)).

Governing law: MCL 400.112g through 400.112k; "estate" defined in MCL 400.112h

Steps to take when someone dies

1. When MDHHS learns of the beneficiary's death, it sends the estate representative or heirs a notice of intent to file a claim along with a questionnaire.
2. Complete and return the questionnaire within 2 weeks, by mail or online through MiNotifyTPL, so MDHHS can determine whether any exemption applies.
3. If a deferral applies (surviving spouse, child under 21, or a blind or permanently disabled child), recovery is deferred while that person is living.
4. Request an undue-hardship waiver application from MDHHS at 1-844-875-6324 if the estate is a limited-income family farm or business or a home of modest value, and a probate estate has been opened.
5. Address any valid claim as a debt of the estate before distributing assets to heirs.

Frequently asked questions