How to Apply for a Medicaid Hardship Waiver to Protect Inherited Property from Estate Recovery Claims

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.

Understanding Medicaid Estate Recovery in Louisiana

What Is Medicaid Estate Recovery?

Under Louisiana law, the Medicaid Estate Recovery Program (MERP) seeks reimbursement from the estates of deceased Medicaid recipients for long-term care costs paid by the state. State statute La. Rev. Stat. § 36:439.7 authorizes recovery from the recipient’s probate and nonprobate assets, including inherited property.

Why a Hardship Waiver Matters

A hardship waiver can prevent the forced sale or lien on inherited property when recovery would cause undue hardship to surviving heirs or violate federal regulations at 42 C.F.R. § 433.36(g)-(h). Common grounds include loss of primary residence, financial distress, or hardship to disabled dependents.

Step-by-Step Application Process

1. Contact the MERP Administrator. Reach out to the Louisiana Department of Health, Office of Aging and Adult Services, Estate Recovery Section. Request a hardship waiver application packet.
2. Gather Required Documents. You must provide:
   • Death certificate of the Medicaid recipient
   • Proof of inheritance (will, succession documents)
   • Property deed and valuation
   • Income and expense statements for heirs
   • Evidence of undue hardship (medical bills, disability letters, dependent care costs)
3. Complete the Hardship Waiver Form. Answer all questions fully and attach supporting documentation. Specify the type of hardship and how recovery would cause you or your dependents financial harm.
4. Submit Your Application. Mail or hand-deliver the packet to the Estate Recovery office. Keep proof of delivery.
5. Await a Decision. The MERP administrator must decide within 90 days under federal regulations. They may request additional information or schedule an informal conference.
6. Appeal if Denied. If the waiver is denied, you have the right to an administrative appeal. File a written request for reconsideration within 30 days of the denial notice.

Key Eligibility Requirements

• Applicant is the surviving spouse, child under age 21, or disabled child of the Medicaid recipient.
• Property serves as the heir’s primary residence or contains assets essential to livelihood.
• Recovery would deprive the heir of basic necessities or impose severe financial strain.

Helpful Hints

• Start early: Gathering legal and medical documents can take weeks.
• Consult a probate attorney to help establish your heirship and complete succession.
• Keep copies of all correspondence and delivery receipts for your records.
• Document every expense and hardship in writing to strengthen your case.
• If possible, request a waiver before formal probate to avoid liens.
• Explore alternative relief programs, such as spousal impoverishment protections, if you’re a surviving spouse.