Texas Medicaid Estate Recovery Time Limit
May 31, 2024
This article about Understanding the Texas Medicaid Estate Recovery Program by estate planning attorney Joy C. McNair and the McNair Law Group PLLC, is not legal advice. It is for informational purposes only. To get specific legal advice in Texas, contact our law firm today at (281) 407-9830.
As we age, many of us may find ourselves or our loved ones in need of Medicaid services to cover medical expenses. While Medicaid can provide much-needed support, it's important to understand the implications of the Texas Medicaid Estate Recovery Program.
What Happens To The Estate Of A Deceased Medicaid Recipient?
Medicaid is a vital program that provides health coverage to millions of Americans, but many are unaware of the Medicaid Estate Recovery Program. This program allows the state to recover certain costs from a person's estate after they pass away.
However, there are circumstances in which the state may not implement this program.
In this blog post, we will explore who is affected by this program, what kinds of Medicaid services are subject to recovery, the statute of limitations on recovery in Texas, and whether it is legal for the state to recover payments from a deceased individual's property.
We will also explore when the state does not implement the Medicaid Estate Recovery Program in Texas and how you can avoid it.
If you or someone you know is facing these concerns, keep reading for valuable information.
Who Does The Texas Medicaid Estate Recovery Program Affect?
The Texas Medicaid Estate Recovery Program affects individuals that were 55 years old or older when they received Medicaid benefits.
This means that if you or a loved one falls into this age category and utilized Medicaid services, your estate may be subject to recovery after the recipient's death. It's essential for individuals in this age group to be aware of this program and its potential impact on their assets.
Certain Long Term Care Services Are Subject To The Program
The Texas Medicaid Estate Recovery Program affects individuals who receive certain long-term care services under the state's Medicaid program.
These services may include a nursing home, facility, home and community-based, and related hospital or prescription drug services. If an individual receives these services while enrolled in Medicaid and passes away, the state may attempt to recover payments made on their behalf from their estate.
It's important to note that not all Medicaid services are subject to recovery under this program, so it's essential to understand which services are included.
What Other Medicaid Services Are Subject To The Texas Medicaid Estate Recovery Program?
Medicaid services subject to recovery under the Texas Medicaid Estate Recovery Program are not limited to long-term care or nursing facility services but may also include home—and community-based waiver services and related hospital and prescription drug services provided through these programs.
If an individual receives any of these services while on Medicaid and passes away, their estate may be required to repay the state for those expenses.
According to the Texas Health & Human Services website, here are the specific programs that may be affected by recovery:
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Nursing facility care (nursing homes)
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Intermediate Care Facility for Individuals with an Intellectual Disability or Related Condition (ICF/IID)
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The following Medicaid waiver programs:
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Community Attendant Services (CAS)
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Community Based Alternatives (CBA)
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Community Living Assistance and Support Services (CLASS)
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Consolidated Waiver Program (CWP)
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Deaf-Blind with Multiple Disabilities (DBMD)
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Home and Community-based Services (HCS)
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Integrated Care Management (ICM)
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STAR+PLUS (long-term care services)
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Texas Home Living (TxHmL)
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The program also affects the costs of certain hospital and prescription drug services you receive, but recovery does not affect Primary Home Care (PHC).
What Assets Will The State Of Texas Try To Take?
However, Texas can also try to collect via various assets, including:
– Home
– Cash in bank accounts
– Money in checking and savings accounts
– Remaining funds in certain trusts
– Remaining funds in irrevocable funeral trusts
– Items of value, including vehicles
What Is The Statute Of Limitations On Medicaid Recovery In Texas?
In Texas, a statute of limitations on Medicaid recovery limits the timeframe in which the state can seek repayment from an individual's estate.
The statute of limitations on Medicaid recovery in Texas is four months after the date of the individual's death or one year after the last payment for medical assistance was made on behalf of the individual, whichever is later.
It is important to note that Medicaid cannot place a lien on property during the recipient's lifetime, but they can seek recovery from their estate after they pass away.
This means that if you receive a notice of intent to recover Medicaid payments from your deceased loved one's estate within this timeframe, the state can legally do so. It's crucial to respond promptly to any notices you receive regarding estate recovery and seek legal advice if needed.
I Received A Notice Of Intent To Recover Medicaid Payments From My Deceased Mother's Property In Texas. Is This Legal?
If you have received a notice of intent to recover Medicaid payments from your deceased mother's property in Texas, it is essential to seek legal advice immediately. While it may seem overwhelming or unfair, it is crucial to understand your rights and obligations regarding this matter. Consulting with an attorney specializing in elder law can help clarify any confusion and guide you through the process.
The state can legally pursue these funds as long as the recovery is within the statute of limitations outlined by law.
Even If You Received A Notice Of Intent, We Can Help:
Contact Us Today at (281) 407-9830
When Does The State Not Implement The Medicaid Estate Recovery Program?
Under certain circumstances, the state may choose not to pursue estate recovery through the Texas Medicaid Estate Recovery Program.
One common exemption is if a spouse or disabled child survives the deceased individual. In these cases, the state cannot file a claim against the estate until after the surviving spouse or disabled child has passed away. This exemption provides peace of mind for families with loved ones relying on their assets for support.
Additionally, it may not be pursued if pursuing recovery would cause undue hardship for other family members or if the cost of recovery exceeds the estate's value.
How Do I Avoid Medicaid Estate Recovery In Texas?
If you're concerned about Medicaid estate recovery in Texas, there are steps you can take to avoid it potentially. One option is establishing a properly structured irrevocable trust that holds your assets outside your estate. By transferring assets into an irrevocable trust, you may be able to protect them from being subject to Medicaid estate recovery after your passing.
By working with an experienced attorney in our firm, individuals can create trusts and other legal structures that shield assets and real and personal property from being subject to Medicaid claims. It is important to plan ahead and take proactive steps to protect your estate from potential recovery efforts by the state.
How Do I Protect My Home From Medicaid In Texas?
You can protect your home from a Medicaid estate recovery claim in Texas by transferring the property to an irrevocable trust or executing a Lady Bird deed.
For more information on Lady Bird deeds click here to read our blog post on the topic.
A Deceased Recipient Of Medicaid Benefits Will Be Subject To Recovery, But It May Be Avoided
Navigating the Texas Medicaid Estate Recovery Program can be complex and emotionally challenging for individuals and families dealing with end-of-life affairs.
This program can have significant implications for individuals and families who have received long-term care services through Medicaid.
If you have questions or concerns about how this program may impact you or your loved ones, don't hesitate to seek legal advice and advocate for your rights. By staying informed and proactive, you can ensure that your estate is handled appropriately while still protecting your assets for future generations.
It is always recommended to consult with a qualified attorney who is experienced in elder law and estate planning to develop a comprehensive strategy tailored to your specific needs and goals. By exploring strategies to avoid or minimize estate recovery, such as proper estate planning and consulting with legal experts, you can protect your assets and ensure peace of mind for yourself and your loved ones. Remember that knowledge is power – take control of your future today!
How Can I Get More Information On Medicaid Estate Recovery?
To receive more information on the Medicaid Estate Recovery Program in Texas, you can visit the official website of the Texas Health and Human Services Commission. They provide detailed information on eligibility, exemptions, and other important aspects of estate recovery.
But for information specific to your situation, the best thing to do is consult with an experienced elder law attorney who focuses exclusively on estate planning and elder law matters to discuss your options and develop a personalized strategy.
That's where we come in!