FastCounsel

Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance tailored to your situation, consult a licensed attorney.

Detailed Answer

When a Medicaid recipient in Tennessee passes away, TennCare may recover costs paid on their behalf by placing a claim against their estate. Your inherited property—such as a family home—could face liquidation to satisfy this claim. Under Tennessee law, you can request a hardship waiver to protect inherited property from estate recovery if enforcing the claim would cause undue hardship.

1. Understand Tennessee’s Estate Recovery Law

TennCare conducts estate recovery under Tenn. Code Ann. § 71-5-117. That statute authorizes recovery from the estates of deceased Medicaid beneficiaries but allows TennCare to waive recovery if it creates an “undue hardship.” Review the statute text here: Tenn. Code Ann. § 71-5-117.

2. Confirm Hardship Waiver Eligibility

To qualify for a hardship waiver, you must show that recovering Medicaid expenses from the inherited property would:

• Leave surviving relatives without adequate shelter or resources;
• Impose costs you cannot meet despite reasonable efforts;
• Prevent you from meeting basic living expenses.

Eligibility factors include income, assets other than the inherited property, family size, and special needs of surviving relatives.

3. Gather Required Documentation

Prepare the following before completing the waiver application:

• Certified copy of the decedent’s death certificate;
• Proof of your relationship or legal status as heir (e.g., will, letters testamentary);
• Recent property appraisal or tax assessment for the inherited asset;
• Income statements (pay stubs, Social Security awards) for all household members;
• Monthly expense records (mortgage, utilities, medical bills).

4. Complete the Hardship Waiver Application

Download the TennCare hardship waiver form from the official TennCare website: TennCare Estate Recovery Hardship Waiver Application. Follow instructions to:

• Identify the specific property you inherited;
• Explain how recovery would impose financial hardship;
• Attach all supporting documentation.

5. Submit Your Request to TennCare

Mail the completed application and attachments to:

Keep copies of everything you submit and send via certified mail or another trackable method.

6. Await TennCare’s Decision and Appeal if Necessary

TennCare must respond within 90 days. If Tennessee denies your waiver request, you have 30 days to file an administrative appeal under Tenn. Comp. R. & Regs. 1200-13-11. Instructions for appeal appear in your denial notice.

Helpful Hints

• Start early: Estate recovery deadlines run quickly after probate.
• Keep detailed expense logs to support your hardship claim.
• Maintain copies of all correspondence with TennCare.
• Consider hiring an elder law attorney to navigate complex rules.
• Review federal rules on Medicaid estate recovery at 42 C.F.R. § 433.36 for additional context.