Medicaid Estate Recovery in Wisconsin
Wisconsin recovers Medicaid and long-term care costs from the estate of a deceased recipient, and also from the estate of a deceased nonrecipient surviving spouse. By statute, the property reached includes assets that passed through joint tenancy, tenancy in common, survivorship, life estate, or a revocable trust — not only assets that went through probate.
Administering agency
Wisconsin Department of Health Services — Estate Recovery Program
Authority
Wis. Stat. 49.496; Wis. Stat. 49.849
Medicaid Estate Recovery in Wisconsin: key facts
- Recovery scope
- Medical assistance paid while the recipient resided in a nursing home, or while the recipient was a hospital inpatient required to contribute to the cost of care, plus home- and community-based services, long-term care program services, and personal care services received at age 55 or older (Wis. Stat. 49.496(3)(a)).
- Property reached
- "Property of a decedent" includes assets transferred to a survivor, heir, or assignee through joint tenancy, tenancy in common, survivorship, life estate, revocable trust, or any other arrangement, excluding an irrevocable trust (Wis. Stat. 49.496(1)(cm), 49.849(1)(d)).
- Recovery deferred
- The Department may not collect while the decedent is survived by a spouse, a child under age 21, or a disabled child of any age (Wis. Stat. 49.496(3)(b), 49.849(2)(a)2.).
- Lien on real property
- The Department has a lien on the decedent's real property, recordable with the county register of deeds, but may not foreclose it while the decedent's spouse, or a child under 21 or disabled, is alive (Wis. Stat. 49.849(4)(a), (4)(b)).
- Hardship waiver
- A person who co-owned property with the decedent or who is a beneficiary of the property may request a hardship waiver from the Department; the Department's recovery affidavit must say so (Wis. Stat. 49.849(3)(c)5.).
- Personal property heirs keep
- Recovery is reduced so heirs or will beneficiaries may retain the decedent's wearing apparel and personal jewelry, household furniture, furnishings, and appliances, and other non-business tangible personal property (Wis. Stat. 49.849(2)(b)).
- Right to a hearing
- A person who possesses property of the decedent and receives a recovery affidavit may request a departmental fair hearing on the value of the property and the extent of the recipient's interest within 45 days after the affidavit was sent (Wis. Stat. 49.849(5m)).
Governing law: Wis. Stat. 49.496; Wis. Stat. 49.849
Steps to take when someone dies
- Determine whether the deceased received Medicaid long-term care, nursing home, home care, or personal care services, or was married to someone who did.
- Notify the Wisconsin DHS Estate Recovery Program (608-264-6755 or 608-264-7739) so a claim amount can be calculated.
- Address the claim as a debt of the estate before distributing assets to heirs; if real property is involved, expect a lien recorded with the county register of deeds.
- If a surviving spouse or qualifying child is living, document that recovery is barred; if a co-owner or beneficiary faces hardship, request the hardship waiver through DHS.
- If DHS sends a recovery affidavit and the property's value or the recipient's interest in it is disputed, request a fair hearing within 45 days of the date the affidavit was sent.
Wisconsin Department of Health Services — Estate Recovery Program
Phone: 608-264-6755
Visit the agency website →Frequently asked questions
Yes. Wis. Stat. 49.496(1)(cm) and 49.849(1)(d) define "property of a decedent" to include assets transferred to a survivor, heir, or assignee through joint tenancy, tenancy in common, survivorship, life estate, revocable trust, or any other arrangement. Only an irrevocable trust is excluded.
Yes. Wis. Stat. 49.496(3) and 49.849(2) let the Department collect from the estate of a deceased nonrecipient surviving spouse for Medicaid paid for the recipient. There is a rebuttable presumption, consistent with Wis. Stat. 766.31, that all property of the deceased nonrecipient surviving spouse was marital property held with the recipient and that 100 percent of it is subject to the Department's claim (Wis. Stat. 49.496(3)(aj)2., 49.849(2)(c)).
The Department may not collect while the recipient is survived by a spouse, a child under age 21, or a disabled child (Wis. Stat. 49.496(3)(b), 49.849(2)(a)2.). It can record a lien against the home but cannot foreclose it while any of those survivors is alive (Wis. Stat. 49.849(4)(b)).
Sources
Data sourced from Medicaid Estate Recovery in Wisconsin primary sources (4 pages reviewed). How we research.
Administering agency
Wisconsin Department of Health Services — Estate Recovery Program
Authority
Wis. Stat. 49.496; Wis. Stat. 49.849