Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Detailed Answer
Overview of Medicaid Estate Recovery in Colorado
Under Colorado law, the Department of Health Care Policy and Financing (HCPF) must seek reimbursement from the estates of Medicaid recipients age 55 or older for long-term care services provided after that age. See C.R.S. § 26-4-105.7. When the recipient’s estate includes real property, HCPF may place a claim or lien against inherited property to recover the costs paid.
Step 1: Identify Medicaid Benefits and Estate Assets
Begin by confirming that the decedent received Medicaid-funded long-term care or related services after age 55. Collect:
- Medicaid award and eligibility letters
- Medical bills showing dates of service
- Title documents for real property (deeds and mortgages)
- Probate filings and personal representative appointment
Step 2: Receipt of Estate Recovery Notice
After the recipient’s death, HCPF issues a Notice of Estate Recovery to the personal representative or next of kin—usually within 90 days of opening probate. This notice states the amount claimed and provides information on how to dispute or satisfy the claim.
Step 3: Formal Claim Filing in Probate Court
Under Colorado Probate Rules, HCPF must file a formal proof of claim with the appropriate county probate court. The filed claim includes:
- Verified statement of the debt, including dates and amounts of services
- Copy of the estate recovery notice
- Proof of service on the personal representative
The personal representative then has four months from the date of first publication of notice to object or settle the claim.
Step 4: Lien Attachment on Real Property
Once the probate court allows the claim, HCPF records a lien against the real property in the county clerk and recorder’s office. This lien preserves the state’s right to repayment when the property is sold or transferred.
Step 5: Estate Administration and Property Sale
Before distributing assets to heirs, the personal representative must satisfy all valid claims, including Medicaid estate recovery. If heirs wish to keep the property, they may need to refinance or pay off the lien out of personal funds. If the estate lacks sufficient liquid assets, the representative may sell the property under court supervision.
Step 6: Release of Lien
After full repayment, HCPF files a Release of Lien in the county records. This clears title and allows heirs to receive clear ownership.
Step 7: Objections and Appeals
Heirs or representatives can dispute the amount or validity of the claim by:
- Filing a written objection in probate court within the four-month claims period
- Requesting a hearing under Colorado Rules of Civil Procedure, Rule 106(a)(4), for administrative review of HCPF decisions
Appeals of final orders may follow standard probate appeal procedures.
Helpful Hints
- Review the decedent’s Medicaid benefit history closely—errors in service dates can reduce the claimed amount.
- Check for federal exemptions for a surviving spouse, minor children, or a disabled child under 42 U.S.C. § 1396p(b)(4)(A).
- Gather property appraisals early to determine the lien’s impact on estate liquidity.
- Consider negotiating a repayment plan with HCPF if the estate lacks sufficient cash.
- Work with a probate attorney to meet strict filing deadlines and avoid forfeiting objections.