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Medicaid Could Cost Elderly Their Homes
Topix.net
October 4, 2005
Many elderly El Pasoans who use Medicaid could be at risk of losing their homes once they die, and it's perfectly legal.
It's all part of a new program implemented by the state and required by federal law. The Medicaid Estate Recovery Program went into effect March 1 and affects Medicaid recipients who signed up for Medicaid since March.
By law, a person only needs to sign a form that notifies them that signing up for the long-term care benefits gives the state the right to their estate once they die. That includes a person's home, car, or other personal property.
However, bank accounts, insurance policies, pension plans, retirement accounts and some other items are exempt.
The initial push for the program started in 1993 with the Omnibus Budget Reconciliation Act (OBRA). Under the federal law, the state has the right to recover long-term benefit costs covered by Medicaid.
Services could include nursing home, hospital care, or prescription drugs.
"All that the government wants is your home, your home," said Tina Silva in tears. Silva is a 52-year-old El Pasoan who suffers from fibromyalgia. She's refused aid and says she rather die than hand over her home to the government.
"I understand wanting to hold on to something you worked your whole life for. I still, though, think it's a huge mistake retaining a house over getting the right care that somebody needs," said Stephanie Townsend Allala, an attorney who handles disabilities cases, and property cases.
While the current law applies to anyone who's signed up since March 1, there are exceptions.
The state will not try to recover costs if the Medicaid recipient is survived by a spouse, or child under 21 years old; if there's a surviving child of any age who is blind or permanently disabled; or if an unmarried adult child lives with the Medicaid recipient for at least one year before their death.
"If you aren't ready for a nursing home yet, start thinking about it, and are if there are some transfers you might want to make, you could do something to protect your assets," said Townsend Allala.
The state does have a three-year requirement on property transfers before the heir can take full claim. A surviving child can also take out a mortgage and pay the state the money owed.
Texas is one of the last states to implement such a program.
The Medicaid Estate Recovery Program will affect everyone at one point or another.
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