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
1. Overview of Oregon Medicaid Estate Recovery
Oregon law requires the Department of Human Services (DHS) to seek reimbursement from the estates of deceased Medicaid recipients for certain long-term care costs. Under Oregon Revised Statutes (ORS) 416.475–416.482, DHS may place a claim on real property, including inherited homes. (ORS 416.481)
2. Hardship Waiver Basics
A hardship waiver allows an heir or personal representative to request that DHS waive its claim when recovery would cause extraordinary hardship. The waiver focuses on the impact to surviving family members or dependents.
3. Eligibility Criteria
- The property interest must pass through probate or trust.
- DHS must have filed an estate recovery claim.
- You must demonstrate that enforcing the claim causes extraordinary hardship (e.g., you are a spouse, minor dependent, or disabled heir).
4. Step-by-Step Application Process
- Obtain the Estate Recovery Claim Notice. You should receive a written notice from DHS listing the estate claim.
- Gather Documentation. Collect death certificate, will or trust documents, probate court forms, property valuation, and proof of relationship or dependency.
- Download the Hardship Waiver Form. Get form 5693 (Hardship Waiver Application) from the Oregon DHS Estate Recovery page: Oregon DHS Estate Recovery Program.
- Complete the Application. Provide all requested information clearly. Explain your financial situation, household composition, and why recovering the full amount would be an undue hardship.
- Submit to DHS. Mail or deliver the application and supporting documents to the address on the form. Keep copies of everything you send.
- Attend a Hearing (if required). DHS may schedule an informal review. You have a right to an administrative hearing under ORS 183.413 if DHS denies your waiver. (ORS 183.413)
- Receive DHS Decision. DHS will issue a written decision. If approved, the claim against the property is reduced or eliminated as specified in the waiver.
5. After Approval or Denial
If DHS approves your waiver, ensure the court records reflect the reduced or waived claim before distributing assets. If DHS denies the waiver, you can appeal through the Oregon Office of Administrative Hearings.
Helpful Hints
- Start early: Estate recovery deadlines can run quickly after probate begins.
- Keep records: Maintain copies of all forms, notices, and correspondence with DHS.
- Show impact: Demonstrate how recovering the full claim harms you or your dependents.
- Seek assistance: Contact your local legal aid office or elder law clinic for guidance.
- Understand timelines: You often have just 30 days to respond to a DHS notice.
- Review statutes: Read ORS 416.475–416.482 for full statutory details.