What is the Florida Medicaid Estate Recovery Program?

Not many low-income people have a trust in place for when they die, but those who received Medicaid assistance may want to have it in order to protect their assets.

Under federal law (and implemented in Florida under Florida Statute 409.9101), when a person who received Medicaid assistance dies, Medicaid can file a claim against their estate to recover the cost of medical assistance the state paid on their behalf.

In Florida, this recovery obligation applies only to Medicaid recipients who were age 55 or older at the time they received services. The program is administered by Health Management Systems (HMS), on behalf of the state’s Agency for Health Care Administration (AHCA).

How the Recovery Process Works

When a Medicaid recipient’s estate opens, the estate’s personal representative or attorney must notify the Medicaid Estate Recovery Program. That includes sending a copy of the death certificate plus a copy of the estate’s “notice of administration.”

Once the state discovers the probate estate, the agency reviews records and, if Medicaid made payments for the decedent, files a claim in probate court asserting the amount owed.

In the probate distribution hierarchy: first come administration costs (such as attorney’s fees and court costs), then allowed funeral and burial expenses, then the Medicaid claim, before lower-priority creditors or beneficiaries receive non-exempt assets.

What Applies?

• Retirement accounts or other assets that avoid probate (such as named beneficiaries, joint tenancy, and living trusts) are generally exempt.
• Probate estate assets that are subject to recovery generally include real estate, bank or investment accounts, vehicles, personal property, and items solely in the decedent’s name at death.
• Recovery does not apply if, at death, the decedent left behind a surviving spouse, a minor child (under 21), or a child of any age who is blind or permanently disabled.
• Some property is constitutionally protected under Florida’s homestead laws. For example, if the decedent’s primary home qualifies as a protected homestead and passes to a lawful heir, Medicaid generally cannot force its sale for repayment.

What This Means for Estates

Even if Medicaid helped pay for long-term care or other medical services, the associated debt does not end at death, Instead, it becomes a claim against the estate. Without planning, heirs may lose significant assets, including real estate or savings.

Assets outside probate often avoid the estate recovery process, so there are planning strategies you can use to avoid losing your rights to the estate. Certain surviving family conditions (such as spouse, minor child, or a disabled/blind child) can exempt the estate entirely. In any case, executors and personal representatives must follow the notice requirements strictly. Failure to do so may lead to delayed claims, creditors’ disputes, or legal complications.

Seek Legal Help

Many states such as Florida allow for compensation if a decedent used Medicaid services. This means that the state could intercept part or all of the estate as a form of financial recovery.

Fort Lauderdale probate litigation lawyer Edward J. Jennings, P.A can assess your case and determine if this program applies in this case, and if so, what you need to do. Fill out the online form or call 954-764-4330 to schedule a consultation.

Source:

flmedicaidtplrecovery.com/flmedicaidtplrecovery.com/estate/index.html