Share

New York Real Estate & Estate Planning Blog

Monday, April 20, 2015

What is Estate Recovery?

Medicaid is a federal health program for individuals with low income and financial resources that is administered by each state. Each state may call this program by a different name. In California, for example, it is referred to as Medi-Cal. This program is intended to help individuals and couples pay for the cost of health care and nursing home care.

Most people are surprised to learn that Medicare (the health insurance available to all people over the age of 65) does not cover nursing home care. The average cost of nursing home care, also called "skilled nursing" or "convalescent care," can be $8,000 to $10,000 per month. Most people do not have the resources to cover these steep costs over an extended period of time without some form of assistance.

Qualifying for Medicaid can be complicated; each state has its own rules and guidelines for eligibility. Once qualified for a Medicaid subsidy, Medicaid will assign you a co-pay (your Share of Cost) for the nursing home care, based on your monthly income and ability to pay.

At the end of the Medicaid recipient's life (and the spouse's life, if applicable), Medicaid will begin "estate recovery" for the total cost spent during the recipient's lifetime. Medicaid will issue a bill to the estate, and will place a lien on the recipient's home in order to satisfy the debt. Many estate beneficiaries discover this debt only upon the death of a parent or loved one. In many cases, the Medicaid debt can consume most, if not all, estate assets.

There are estate planning strategies available that can help you accelerate qualification for a Medicaid subsidy, and also eliminate the possibility of a Medicaid lien at death. However, each state's laws are very specific, and this process is very complicated. It is very important to consult with an experienced elder law attorney in your jurisdiction.


Archived Posts

2016
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
2013


John P. Rosenblatt, Attorney at Law assists clients in Nassau County, Suffolk County, the Five Boroughs, the NY Metro Area, Westchester County, Putnam County, Orange County, Dutchess County and Rockland County.



© 2017 John P. Rosenblatt, Attorney at Law | Attorney Advertising
100 Broadhollow Road, Suite 205, Farmingdale, NY 11735
| Phone: 631-753-5252

Residential Real Estate | Commercial Real Estate | Estate Planning | Estate Planning for High Net Worth Individuals | Planning for Children | Guardianships | Probate & Estate Administration | Business Law | Business Succession Planning |

Amicus Creative