Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.

Understanding Nebraska Medicaid Estate Recovery and Hardship Waivers

What Is Medicaid Estate Recovery?

Under federal and state law, Nebraska’s Department of Health and Human Services (DHHS) must seek reimbursement from the estates of deceased Medicaid recipients for long-term care costs paid by Medicaid. See Neb. Rev. Stat. § 68-1516 and § 68-1520.

Nebraska’s Undue Hardship Waiver

Nebraska law allows DHHS to waive recovery if enforcing it would cause an undue hardship on surviving heirs. See Neb. Rev. Stat. § 68-1517(2). A successful waiver can protect inherited real property—such as a family home—from being sold to satisfy Medicaid claims.

Who Can Apply?

Heirs, beneficiaries, or personal representatives of the deceased Medicaid recipient may request a hardship waiver. You must submit your application within the timeframe set by DHHS—typically within 90 days after receiving notice of the estate recovery claim.

Steps to Apply for a Hardship Waiver

1. Obtain the Application Form. Download the Estate Recovery Undue Hardship Waiver Application (Form 414) from the Nebraska DHHS website or request it by mail from the Estate Recovery Unit.
2. Gather Supporting Documents. Prepare financial statements showing your income, expenses, assets, and liabilities. Provide evidence of the value of the inherited property and any mortgage or liens.
3. Demonstrate Undue Hardship. Explain how selling or mortgaging the property would deprive you of the necessities of daily living or otherwise create extreme financial hardship. Include medical bills, school records, or other proof of need.
4. Submit Your Application. Mail or deliver your completed application and supporting documents to:
   
   Estate Recovery Unit
   Nebraska DHHS
   P.O. Box 95026
   Lincoln, NE 68509-5026
   
5. Await DHHS Decision. DHHS typically issues a written determination within 60 days. If the waiver is granted, your property is protected from sale under the estate recovery program.
6. Appeal if Denied. If DHHS denies your request, you have the right to an administrative hearing. Follow the instructions in your denial letter to appeal within the required timeframe.

Key Statutes and Regulations

• Neb. Rev. Stat. § 68-1516 – Definitions and scope of estate recovery.
• Neb. Rev. Stat. § 68-1517 – Waivers for undue hardship.
• Neb. Rev. Stat. § 68-1520 – Claims against estates.

Helpful Hints

• Act promptly when you receive the DHHS notice to preserve your right to apply.
• Keep copies of all forms and documentation you submit.
• If you expect delays in gathering documents, contact the Estate Recovery Unit to request an extension.
• Professional appraisals of real property strengthen your application.
• Consult a lawyer experienced in elder law or probate if your case is complex or your waiver is denied.