In Michigan,MDCH will not recover assets from the home of a Medicaid recipient while one of the following individuals is lawfully residing in that home: 1. A Medicaid recipient's spouse. 2. A Medicaid recipient's child who is less than 21 years old. 3. A Medicaid recipient's child who is blind or permanently disabled. 4. A survivor who lived in the home and provided care that allowed the Medicaid recipient to remain in their home for at least two years immediately prior to the Medicaid recipient's admission into a medical facility. 5. A Medicaid recipient's sibling who has an equity interest in the home and who lived in the home for at least one year immediately prior to the Medicaid recipient's admission into a medical facility. Certain Medicare cost sharing benefits are exempt from Estate Recovery. The above exemptions are temporary. Additionally, MDCH will not pursue Estate Recovery if it would result in an undue hardship. An undue hardship may exist when (1) the estate subject to recovery is the primary income-producing asset of the survivors (where such income is limited), such as a family farm or business; (2) the estate subject to recovery is a home of modest value; or (3) the State's recovery of a decedent's estate would cause a survivor to become or remain eligible for Medicaid. To qualify for an undue hardship waiver, the applicant must satisfy a Means Test. This ensures that an actual hardship would result. An applicant will satisfy the means test if both of the following are true: Total household income of the applicant is less than 200% of the poverty level for a household of the same size: and Total household resources of the applicant are less than $10,000. As stated above, there is a presumption that no hardship exists if the hardship resulted from estate planning methods where assets were diverted in order to avoid estate recovery. "Home of modest value" means a home that is worth less than 50% of the average price of a home in the county where it is located on the date the Medicaid recipient died. The average price of a home may be determined from the tax assessment values in the county. A "survivor" is an heir who did not die before the Medicaid recipient. The survivor must have lived in the Medicaid recipient's home for at least 2 years immediately before the Medicaid recipient went into a medical institution. The survivor must show that he or she provided care that let the medical assistance recipient stay at home rather than in an institution during that 2 year period.
Answered on Feb 19th, 2013 at 7:12 PM