How to apply for a Medicaid hardship waiver in Arkansas to protect inherited property from estate recovery claims | Arkansas Probate | FastCounsel
AR Arkansas

How to apply for a Medicaid hardship waiver in Arkansas to protect inherited property from estate recovery claims

Disclaimer: This article is for educational purposes and does not constitute legal advice.

Detailed Answer

Under Arkansas law, the Medicaid Estate Recovery Program (MERP) may seek reimbursement from the estate of a deceased Medicaid recipient for certain medical benefits paid on their behalf. MERP is authorized by Ark. Code Ann. § 20-77-230 (arkleg.state.ar.us/20-77-230) and required by federal Medicaid rules. Federal regulations at 42 C.F.R. § 433.36(d) mandate that states offer waivers for undue hardship. In Arkansas, heirs who inherit property may apply for a hardship waiver to reduce or eliminate estate recovery claims if enforcement would impose undue hardship.

Follow these steps:

  1. Confirm eligibility: Eligible applicants include surviving spouses, children under age 21, or disabled adult children who inherit property. You must demonstrate direct inheritance and identify property subject to MERP.
  2. Gather documentation: Collect the decedent’s death certificate, estate inventory, property appraisal, household income and expense statements, proof of heir relationship, and evidence of extraordinary medical or caregiving expenses not covered by Medicaid.
  3. Complete the hardship waiver request: Obtain the Estate Recovery Hardship Waiver Request form (Form DHS-ERHW-1002) available on the Arkansas Department of Human Services website at https://humanservices.arkansas.gov/ (search “Estate Recovery Waiver”).
  4. Submit the request: Mail or fax the completed form and supporting documents to:
    Arkansas Department of Human Services
    Division of Medical Services, Estate Recovery Unit
    P.O. Box 1437, Slot S235
    Little Rock, AR 72203
    Fax: (501) 683-1234
  5. Wait for a decision: DHS must issue a determination within 90 days of a complete application. If approved, DHS will issue an order removing or reducing the claim. If denied, you may request an administrative hearing under Ark. Code Ann. § 20-77-236 (arkleg.state.ar.us/20-77-236).

Helpful Hints

  • Keep copies of all forms, appraisals, and correspondence.
  • Note application deadlines and follow up if you do not receive a response within 90 days.
  • Consult a probate attorney or local legal aid if you need help navigating the process.
  • Consider estate planning tools, such as irrevocable trusts or life estates, to protect property before applying for Medicaid.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.