Many people depend on Medicaid benefits to provide them with the medical care they need. About 18% of Wisconsin residents receive health or long-term care services through Medicaid. That equates to approximately 1.2 million people. Medicaid is a program that provides qualified residents with medical insurance assistance. Although you may receive medical or long-term care services for free or at a reduced rate, the state may be able to get reimbursement from your estate after your death. You may wonder how you can avoid medicaid estate recovery in Wisconsin.
What is Medicaid Estate Recovery?
People who receive governmental medical assistance in the form of Medicaid may need to repay the costs from their estate. This is called Medicaid estate recovery. The state has the right to seek repayment for long-term care, home care, nursing home, and personal care services that were paid by Medicaid. Medicaid estate recovery applies to those aged 55 or over who were on Medicaid. The state may obtain repayment from a person’s estate if they have any assets. If the estate does not have assets, the state is not permitted to seek compensation from family members.
How Does Medicaid Estate Recovery Work?
After the death of a Medicaid recipient, the state will want to recover the costs associated with their care from their estate. The state may seek a lien on a home or other assets owned by a Medicaid recipient. The repayment is to take place with any assets that are part of the estate prior to distribution to beneficiaries. Through the spousal impoverishment provision, the state allows a spouse to keep a certain amount of assets for their own independent living needs. If a lien is utilized, it is in place until the estate makes the repayment. Then, the lien is satisfied, and the remaining assets can be distributed.
How to Avoid Medicaid Estate Recovery
There may be some options you can employ to avoid medicaid estate recovery. Medicare beneficiaries who qualify for help through some programs are exempt from Medicaid estate recovery. In some cases, you may be exempt if you qualify for and obtain a waiver. To prevent the state from taking your home, you may put the home in joint ownership. Another option is to put your home and other assets in an irrevocable trust. The trust must be established more than five years prior to the need for Medicaid. To prevent assets from being used for Medicaid estate recovery, you may choose to give your assets to heirs prior to your death.
Medicaid estate recovery can be somewhat complex. You will want to have a full understanding of the program so you can take the necessary steps to protect your assets ahead of time. You want to make sure that your loved ones will be able to acquire your property after your death. It is helpful to talk to an experienced elder law attorney to assist you with Medicaid estate recovery issues. Contact us at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or online to schedule a consultation today.