Medicaid Estate Recovery in Michigan

Who is subject to recovery

Recovery applies only to beneficiaries who were 55 or older and received long-term care services on or after September 30, 2007.^{1, 2}

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.³

What is recovered

All Medicaid services provided after the beneficiary's 55th birthday are pursued for recovery, including long-term care, non-long-term care, fee-for-service claims, and capitation payments.³

What counts as the estate

The estate is property that passes from the deceased to heirs through a probate proceeding; MCL 400.112h defines it.^{2, 4}

Long-term care partnership policies

If a long-term care partnership policy asset disregard was used, recovery applies to assets whether or not they are subject to probate.^{2, 4}

How the state files its claim

The estate recovery claim is paid in the estate's order of priority, after items such as funeral expenses and costs of administration.³

When recovery is deferred or barred

Recovery is deferred while a surviving spouse, a child under 21, or a child of any age who is blind or permanently disabled is living. These deferrals are temporary.^{2, 3}

Recovery is 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.^{2, 5}

Recovery is deferred while a sibling with an equity interest who lived in the home for at least 1 year before the recipient entered a medical institution is living there.^{3, 5}

Exemptions and protected assets

Certain Medicare cost-sharing benefits are exempt.^{2, 3}

Undue-hardship waiver

An 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.²

The waiver applicant must pass a means test: household income below 200% of the poverty level for a household of the same size, and household resources below $10,000.²

MDHHS processes a waiver application only where a probate estate has been opened.³

MCL 400.112g(3)(e)(iii) presumes no hardship where assets were diverted to avoid recovery.⁵

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

Return the questionnaire sent with the notice of intent to file a claim

within 2 weeks²

1. 1.MCL 400.112k
2. 2.Estate Recovery (Michigan Department of Health and Human Services)
3. 3.Estate Recovery Frequently Asked Questions, rev. 2/2025
4. 4.MCL 400.112h
5. 5.MCL 400.112g