Medicaid and the “Recovery” of the Assets

Starting January 1, thousands of Connecticut residents will become eligible for Medicaid but for some recipients, it will come with a price.  The aptly named “recovery” of the assets of Medicaid recipients means that when those Medicaid beneficiaries die, the state will be able to dock their estates to repay the medical costs it covered.  In Connecticut, a person’s age and the type of services they receive will determine whether they or their estate will be required to repay.  The Medicaid program in Connecticut known as HUSKY has multiple parts and will expand to include HUSKY D because of the ACA. HUSKY D will cover poor adults who don’t have minor children.

For people who enter into HUSKY D, the state can recover assets under three circumstances:

  • “If a person is aged 55 and older, the state can recover the cost of any medical care that was covered by HUSKY D. The state would seek repayment from the estate of the person when he or she dies, but not while the person is alive, according to the state Department of Social Services.
  • If a person is in a nursing home or receives other HUSKY D coverage for long-term care, the state can recover costs from the person’s estate after death, regardless of the person’s age when the costs were incurred, according to DSS.
  • If a person of any age receives Medicaid coverage for injuries sustained in an accident and receives a financial settlement related to the accident, the state can seek reimbursement for the accident-related bills while the person is alive.”

If the Medicaid patient dies or leaves behind a surviving spouse or child under 21, the recovery would be delayed until the spouse dies or the child turns 21.  The rules will apply to people who become eligible for HUSKY D as of January 1 and people who have joined the program since it was established in April 1, 2010.  However, there a separate rules for people who were part of the program formerly known as SAGA medical (state administered general assistance) which was converted into HUSKY D in April 1, 2010. People who received SAGA medical coverage will be subject to more state recovery efforts.

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One thought on “Medicaid and the “Recovery” of the Assets

  1. Pingback: Monday Morning Recap | hmsabc

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