Estate recovery is a part of Medicaid many people don’t understand. It allows the state to recover money spent on a Medicaid recipient’s care after they pass away. This post explains Medicaid estate recovery in Georgia, who it affects, and how families can prepare for it.
Medicaid Estate Recovery in Georgia: What Families Need to Know
Medicaid estate recovery allows the state to recover costs paid for a recipient’s care after they pass away. The Omnibus Budget Reconciliation Act of 1993 created this process. Georgia implemented this program in 2006 to comply with federal law.
The Georgia Department of Community Health (DCH) oversees estate recovery. It applies to recipients in long-term care facilities or those receiving community-based services after age 55. Recovery targets the value of the recipient’s estate, including homes and personal property.
Who is Affected by Estate Recovery?
Not all Medicaid recipients are subject to estate recovery. It applies to those who, at the time of death, were:
- Receiving care in a nursing home, mental health facility, or similar institution.
- Aged 55 or older and receiving home or community-based Medicaid services.
However, there are key exemptions. Estates valued at $25,000 or less are not subject to recovery. Surviving spouses, children under 21, and children with permanent disabilities are also protected. If these conditions apply, the state will delay or waive recovery.
How Does Estate Recovery Work?
After a Medicaid recipient dies, the DCH reviews whether their estate qualifies for recovery. If it does, the state notifies the personal representative of the estate. This notice explains the claim and allows heirs to respond.
The recovery process prioritizes necessary expenses, such as funeral costs and administrative fees. Once the estate covers these expenses, the state seeks repayment for Medicaid-covered services. These costs can include nursing care, hospital services, and prescription drugs.
Preparing for Medicaid Estate Recovery in Georgia
Families can take steps to minimize the impact of estate recovery. Planning is key to protecting assets and your loved ones.
One option is to create irrevocable trusts, which can shield certain assets from recovery. Gifting assets before Medicaid eligibility is another strategy, but it isn’t as simple as just giving things away. Consulting a Medicaid planning attorney can help families navigate these options and comply with the rules.
Hardship waivers may also provide relief in certain situations. For example, heirs who depend on the estate property for income or housing may qualify for an exemption. The Child Caregiver Exemption offers additional protection for children who cared for a parent before their institutionalization.
Take Control of Your Planning
Georgia’s Medicaid estate recovery can significantly impact families. Knowing who is affected and how the process works is essential. With proactive steps, you can reduce the financial burden on your loved ones and safeguard assets.
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