HI there, I have a question about Medicaid estate recovery. If a person's estate is unable to pay the claim that the state has after passing away, because they don't have a house or anything that has enough value to cover the claim, what happens?
What steps would the state take to try and recover assets, would they discover that there aren't enough assets to cover the claim?
Thanks!
or was it first from the State and 2nd from an outside contractor?
Did you already get the NOI (Notice of Intent) and an accompanying questionnaire from the State or the outside contractor the state uses for estate recovery (MERP)? There should be specific ? on just what assets were of the deceased and what thier value was on DOD. Like if they still had a bank account, then the balance of statement for month of death is put into rhe questionnaire and a copy of the statement sent back w the questionnaire. If they had no home or car, you put that in as zero.
If they died with no car or home or bank account there is no recovery. That actually is normal for elders on LTC Medicaid.
If they died with $ in the bank account or $ left over in the at the NHs PNA (personal needs allowance) account and neither was done to be POD aka Pay on Death to a beneficiary, that $ is asset of the estate.
BUT
under federal rules for MERP, in order for estate recovery to go forward it has to be “cost effective”. That tends to mean it’s over 10k in the bank or the costs for the State or the contractor to be a claimant in probate is cost effective.
whatever the case this is NOT your debt. If you were POA that authority stopped when they died. It is a debt of the deceased. State cannot make someone open probate or assume the deceased debts.
If you weren’t POA or didn’t have access to their financials, just write that in the questionnaire as to you “have no knowledge or access as to their financial status and that as such you consider this matter closed by the return of the questionnaire”. Whatever you do mail back questionnaire via certified mail with the return registered card. Duet at USPS is like under $10.
The questionnaire was sent back with all of the information that they required with the envelope they provided to do so, the deceased had a bank account but it was much much less than $10k, they were provided a statement which showed that.
Before any notice of Estate Recovery even being a thing to consider, that was pulled out by their son and the account shut down shortly after they passed to help pay for cremation, there was no service or a burial of any kind.
Months after the questionnaire was sent in they recently sent a thick packet back detailing the claim and basically everything that they had ever done with Medicaid. They were already provided with all of the information they asked for previously though.
I suppose my main wonder is what their next move would be, it definitely wouldn't be cost effective for them to try and reclaim anything when they had no property to speak of and a meager bank account to start with.
Thanks so much for your time!