States Can Seize Assets to Recover Medicaid Costs


Is anyone else alarmed by this? The original story at Hot Air tweeted by Grerp caught my eye:

So, here’s the deal. There used to be a provision whereby the state could recuperate funds spent on a Medicaid patient post-55 years old from whatever assets he owned. So, a low-income individual in nursing home care after age 55 might pass away and his kids would find out the family home or car of whatever he had to his name had to be bought back from the state if they wanted it. It’s called estate recovery, and sounds pretty shady if it’s not boldly advertised as the terms for Medicaid enrollment, which is most definitely is not.

Before the Affordable Care Act’s Medicaid expansion, there weren’t that many people in Medicaid who had much in the way of assets for seizing. But now that Medicaid enrollment requirements have been relaxed, more people with assets but low income are joining the program or being forced into it. For instance, a couple in their 50s who, say, retired early after losing jobs in the bad economy may have assets but show a very low income. Under Obamacare, if their income is low enough to qualify for Medicaid, they must enroll in Medicaid unless they want to buy totally unsubsidized coverage in the now-inflated individual market.

This website has a 50 state look at Medicaid expansion, This US Department of Health and Human Services website spells out the 1993 Estate Recovery Mandate, and here’s another website explaining how this works under the Affordable Care Act of 2010.

I love how the mandate is so ambiguous and open-ended; they can recover costs: “At State option, any other items covered by the Medicaid State Plan.” Any other items. Nice.


3 thoughts on “States Can Seize Assets to Recover Medicaid Costs

  1. Just Saying

    Welcome to Obama’s vision of America – where the state owns everything and you get temporary use of it… This country is rocketing down the tubes – you never get something for nothing, and too many people walk around with their hands’ out.

    If you want to play the game – you have to play it right and play it to win. There are ways to do so – you just have to learn how to twist the system to serve you. I’ve been doing it for the last couple of years – more than I used to when I believed the US would survive. Now I know that it won’t and it’s just a question of how long till it catastrophically fails. So I do everything I can to hurry along it’s impending destruction – in an insane world, that is the only sane move. Well, that and planning to leave the US when there is rioting in the streets…

    I have been offs-shoring my businesses and making sure that my assets are flowing out of the US so that when I leave I’ll be able to live well. Those of us the Obama plan on having fund this fiasco, have our own plans and it isn’t being the sacrificial lambs for his “brave new world”… So when you are wondering what happened – remember, YOU VOTED FOR THIS. I didn’t – so I’m gone… Enjoy…

  2. TempestTcup Post author

    Yes, I can see the decline clearly from where I sit. We have been taking our own measures for the collapse, but are going a different route and digging in. We are almost retired, so it’s a little more difficult to decide whether to go with our carefully thought out retirement plan in place now or flee. Our main problem is where would we flee? What country is better? Mitch says Chile, but Chile just elected a socialist; you saw how well that worked with Allende.

  3. C. M. Sturges

    Just heard about a nearly no cost residency program in Malaysia. But if you have $10,000 that you don’t need, the Philippines has an excellent program also. I’ll post about both of them soon.

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