Disclaimer: This article provides general information and does not constitute legal advice. For advice specific to your situation, consult a licensed attorney or Medicaid planning professional.
Detailed Answer
In Alabama, the Medicaid Agency may seek recovery from the estate of a deceased Medicaid recipient to recoup benefits paid under Ala. Code § 22-6-10. However, heirs can request a hardship waiver under federal and state rules to protect inherited property when recovery would cause undue hardship.
1. Understand Estate Recovery and Hardship Waiver
Estate recovery is the process by which Alabama Medicaid recovers long-term care costs from the estate of a deceased recipient. A hardship waiver allows an heir to avoid recovery if enforcement would cause significant financial harm.
2. Eligibility for a Hardship Waiver
To qualify for a Medicaid hardship waiver in Alabama, you must show:
- You are an heir or a surviving spouse who inherited property.
- Recovery would significantly impair your ability to maintain stable housing or meet essential needs.
- You have not previously sold or encumbered the property in bad faith.
3. Application Process
- Receive a Notice: The Medicaid Agency must send you a notice of its intent to recover from the estate.
- Gather Documentation: Collect records showing your relationship to the deceased, value of the property, income, and expenses. Include any medical hardship or special family circumstances.
- Obtain the Hardship Waiver Form: Request the “Application for Hardship Determination” from the Alabama Medicaid Agency’s Estate Recovery Unit. If needed, refer to federal rule 42 CFR § 433.36(b)(1)(iv).
- Complete and Submit: Fill out the form, attach all supporting documents, and mail it to:
Alabama Medicaid Agency
Estate Recovery Unit
P.O. Box 5624, Montgomery, AL 36103 - Follow Up: Alabama Medicaid must review your request and issue a determination within 90 days. If denied, you may request an administrative hearing within 30 days of the decision.
Helpful Hints
- Act promptly. You usually have a limited time after notice to apply.
- Keep copies of all forms, letters, and receipts you send.
- Explain in detail why recovering would cause you financial hardship.
- If English is not your primary language, ask for translation help or a reasonable accommodation.
- Consider consulting a Medicaid planning attorney to strengthen your waiver request.