One of the challenges facing individuals trying to navigate their way through Medicaid estate recovery and income eligibility for aging and disability services is the amount of myths and misunderstandings that abound. In this column, we are hoping to clear up some of those challenges with the facts regarding Medicaid estate recovery.
Myth: In a recent on-line chat forum, a consumer opined that “Area Agency on Aging will take your house after you die if you receive their services.”
Fact: Area Agency on Aging (AAA) does not seek, or receive, any funds from the estates of consumers served unless a consumer bequeaths a specific gift to the organization in their will. AAA programs and services are funded through a variety of sources including Older Americans Act, Older Michiganians Act, Medicare, Medicaid, grants, foundations, cost-sharing, and private pay, among other funding sources. Only one of AAA’s many service lines is funded through Medicaid.
Fact: Medicaid is a State and Federally funded program that pays for healthcare and long-term care if you have limited income. For services paid for by Medicaid, the Federal government requires state Medicaid programs to seek recovery from the estates of certain deceased beneficiaries who have received benefits from a state Medicaid program. Michigan was the last state in the union to come into compliance with the federal Medicaid Estate Recovery mandate. Michigan’s version of the estate recovery law, passed September 30th, 2007, is not as aggressive as many other states.
Medicaid funded long-term care programs include PACE, nursing home care, adult home help, MI Health Link, and the MI Choice Waiver program. None of the funds from Estate Recovery go to the organization providing care such as PACE or MI Choice Waiver. The state pays for care up front with Medicaid funds, and any Estate Recovery funds received stay at the state and federal level.
Under the Estate Recovery program, the Michigan Department of Health and Human Services (MDHHS) will seek repayment of benefits received from Medicaid. However, there is no effort to recover assets until the Medicaid recipient has died. Even then, no recovery can take place if the recipient’s spouse or their blind or disabled child are still living. Under certain circumstances, the state may choose not to seek, or may defer or decline, recovery from beneficiary’s estate including hardship exemptions. To learn about those exceptions and find other information about Medicaid estate recovery, visit www.michigan.gov/mdhhs/assistance-programs/medicaid/third-party-liability/estate-recovery or call the state Medicaid beneficiary helpline toll-free at (800) 642-3195.
An elder law attorney or Medicaid planning professional can give advice on planning for Medicaid, inclusive of exploring Ladybird Deeds and other strategies to maximize your assets while paying for care and understanding your estate recovery responsibilities should you need Medicaid-funded long-term care.
Myth: Another often heard myth is that “I make too much money for Area Agency on Aging services.”
Fact: Area Agency on Aging services and supports are available to older adults and persons with disabilities age 18+ of all income levels. While some specific program funders, such as Medicare and Medicaid, have age and income eligibility requirements, there are cost-sharing and private pay programs to meet consumer needs for adults aged eighteen and older of all income levels. Many programs are free or have modest fees thanks to our generous funders. Some programs have a private pay component with a cost-sharing opportunity should consumers have difficulty affording the care they or their loved ones need.
Information is power. The Information and Access Specialists are here to help you understand all available options to meet your needs. Whether those supports and services are programs provided by Area Agency on Aging or the vast array of other community services in southwest Michigan. Highly trained specialists are available by phone or in person to discuss your individualized needs and connect you to resources so that you can live with dignity and independence in the setting of your choice.
Get informed. Know your options by calling the team at (800) 654-2810.