Detailed Answer
In New Jersey, the State may recover Medicaid benefits paid on behalf of a deceased recipient from that person’s estate, including inherited property. This process is governed by N.J. Stat. § 30:4D-17.2 (link) and federal regulations at 42 C.F.R. § 433.36 (link).
What Is a Hardship Waiver?
A Medicaid hardship waiver is an exemption that allows certain heirs to retain inherited property without triggering estate recovery. New Jersey implements federal hardship provisions to prevent undue hardship on surviving family members.
Who Qualifies?
- Minor child (under age 21) living in the home at the time of the recipient’s death.
- Adult blind or disabled child who lived in the home before the recipient’s death.
- Siblings who resided in the home for at least one year before the recipient’s death and provided care that allowed the recipient to live at home.
- Individuals who provided care in the home for a minimum of two years before the recipient’s death.
Step-by-Step Application Process
- Review the hardship criteria on the New Jersey Department of Human Services Estate Recovery page: NJ DHS Estate Recovery.
- Obtain and complete the Estate Recovery Hardship Waiver Request Form available on that page.
- Gather supporting documentation:
- Death certificate of the Medicaid recipient.
- Proof of relationship (birth certificates, marriage licenses).
- Evidence of residence (leases, utility bills).
- Medical records proving disability (if applicable).
- Submit the completed form and documents by mail or fax to the Division of Medical Assistance & Health Services (DMAHS) address listed on the form.
- Allow 90 days for review. If denied, request an administrative hearing under N.J.A.C. 10:49-9 (link to procedure) within 30 days of the decision.
Timeline and Decision
DMAHS typically issues a written decision within 90 days of the complete application. If approved, the heir retains the property free of estate recovery claims. If denied, you may appeal or provide additional information.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
Helpful Hints
- Start the waiver process as soon as possible after the recipient’s death.
- Keep copies of every form and document submitted.
- Double-check deadlines for appeals if your request is denied.
- Consider consulting an elder‐law attorney experienced in Medicaid planning.
- Document all caregiving activities if applying as a caregiver heir.