It is important to understand the process of recovery related to MA upfront, as the recovery process after the death of a loved one can be difficult, surprising or upsetting to family members left behind depending on the timing.
Why are counties required to pursue estate recovery?
Federal and state laws require the Minnesota Department of Human Services (DHS) and local county agencies to recover certain costs that the MA program has paid for members’ health care services. This
recovery process is done through Minnesota’s MA estate recovery and lien program. As stated by the Minnesota Supreme Court, estate recovery serves “a very important purpose… whereby money paid to qualified individuals for health care purposes may be recovered and reused to help other similarly situated persons.”
Whom do estate recovery and liens apply to?
If a person is enrolled in MA when they are 55 or older, then, Minnesota must try to recover costs that were paid by the MA program for health care, including: . Nursing home services. . Home and community based services. . Related hospital and prescription drug costs.
If a person permanently lives in a medical institution, Minnesota must also try to recover the costs of all MA services received at any age while living in a medical institution. If an MA enrollee is permanently living in a medical institution and does not have a spouse or disabled child living on their homesteaded real property, the state may file an MA lien against real property to recover MA costs before death. MA members who qualify for services under modified adjusted gross income (MAGI) eligibility criteria are not subject to recovery for services received before the age of 55.
The state also may file a notice of potential claim, which is a form of lien, against real property to recover MA costs after death. Liens to recover MA costs may be filed against the following: . Life estate or joint tenancy interest in real property. . Real property that is owned solely. . Real property that is owned with someone else.
Minnesota cannot start recovery of these costs while the spouse of an MA enrollee is still living or if they have a child that is under 21 years old or a child who is permanently disabled. Once the spouse of an MA enrollee dies, Minnesota must try to recover MA costs from the spouse’s estate. However, recovery is further delayed for those who have a child who is under 21 or permanently disabled.
Children of members do not have to use their assets to reimburse the state for MA services received by members. Cook County, on behalf of the state of Minnesota, will file a Medical Assistance (MA) claim against a deceased member’s estate or the estate of the deceased member’s spouse to recover certain MA payments.
Who can answer questions about estate planning?
The Minnesota Department of Human Services (DHS) and counties are government agencies whose role prohibits them from giving legal advice to the public. MA applicants and enrollees have the right to speak with a private attorney or legal aid attorney regarding specific questions about how MA estate recovery and liens may affect individual circumstance and estate planning.
For more information on MA Estate Recovery, visit: mn.gov/dhs/ma-estate-recovery/
For a basic overview of the Estate Recovery program including examples and explanations, review the Medical Assistance Estate Recovery and Liens (DHS-7273). Contact Cook County PHHS if you have questions on how to access this information by calling 218-387-3620.
Learn more about the PHHS department at the May 21 PHHS board meeting and follow us on Facebook @ CookCountyPHHS.
County Connections is a column on timely topics and service information from your Cook County government. Cook County—Supporting Community Through Quality Public Service
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