Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Understanding Arizona’s Medicaid Estate Recovery
The Arizona Department of Health Services pursues recovery of Medicaid benefits paid on behalf of a recipient from the recipient’s estate under ARS §36-2932 (https://www.azleg.gov/ars/36/02932.htm). This includes real property inherited by heirs. However, Arizona law allows a hardship exemption under ARS §36-2936 (https://www.azleg.gov/ars/36/02936.htm) when recovery would impose undue hardship.
2. Eligibility for a Hardship Waiver
You may qualify if estate recovery would:
- Threaten the home of a surviving spouse;
- Force sale of a residence occupied by a minor, blind, or disabled child;
- Create severe financial hardship for heirs;
- Endanger operation of a family farm.
The Department of Economic Security (DES), Division of Benefits and Medical Eligibility, evaluates these factors in a written waiver decision.
3. Step-by-Step Application Process
- Review Your Notice. Check the estate recovery notice for the claim deadline (often 30 days).
- Gather Documentation. Collect:
- Death certificate and probate documents;
- Property deed and recent appraisal;
- Proof of residence for spouse, minor, blind, or disabled child;
- Financial statements showing hardship;
- Complete the Hardship Exemption Form. Download from DES or request by calling (602) 542-4446.
- Submit Your Application. Mail or hand-deliver to:
Arizona Department of Economic Security
Division of Benefits and Medical Eligibility
Hardship Exemption Unit
1789 W. Jefferson St.
Phoenix, AZ 85007 - Wait for DES Review. The agency reviews within 90–120 days under ARS §36-2936(B).
- Receive the Decision. If approved, you receive a written waiver. Record it in probate to block recovery. If denied, you can appeal.
- File an Appeal if Necessary. Request an administrative hearing under ARS §41-1092.09 (https://www.azleg.gov/ars/41/01092.htm) within 20 days of the denial. Provide new evidence if appropriate.
Helpful Hints
- File your waiver application by the deadline stated in the estate recovery notice.
- Obtain a professional appraisal to establish fair market value.
- Keep copies of all submitted forms and supporting documents.
- If you miss the deadline, contact DES immediately to request an extension.
- Consider consulting an elder law attorney to review complex hardship factors.
- Track the appeal timeline closely to preserve your right to an administrative hearing.