Disclaimer: This article provides general information under Pennsylvania law and is not legal advice.
Detailed Answer
Pennsylvania administers the federal Medicaid Estate Recovery Program (MERP) under 42 CFR 433.36 and 55 Pa. Code § 1133.11. MERP requires the Department of Human Services (DHS) to recover certain costs from the estates of individuals who received long-term care Medicaid benefits. However, you may apply for a hardship waiver if recovery would cause undue hardship to your heirs or beneficiaries.
To request a hardship waiver for inherited property, follow these steps:
- Review the Notice: After the Medicaid recipient passes away, DHS sends a Notice of Estate Recovery outlining the property subject to recovery and response deadlines.
- Gather Documentation: Compile documents showing the inherited property’s value, your household income, expenses, and any special circumstances (e.g., disability, unemployment, or high medical bills).
- Complete the Hardship Waiver Application: Obtain the Request for Hardship Waiver form from your County Assistance Office or from the DHS website (Medicaid Estate Recovery). Fill in all sections, attach financial statements, and a written hardship explanation.
- Submit on Time: File the completed application and supporting documents with the County Assistance Office within 30 days of the estate recovery notice date. Late submissions may be denied.
- Await DHS Decision: DHS reviews your application under the hardship criteria in 42 CFR 433.36(f)(1). If approved, DHS will waive recovery against the specified inherited property. If denied, request an administrative fair hearing under 55 Pa. Code §§ 1135.1–1135.20.
- Consider Estate Planning: Advance planning strategies, such as irrevocable trusts or transfers to exempt individuals, may shield property from future claims. Consult an attorney before making transfers to avoid penalties under 42 U.S.C. § 1396p.
Helpful Hints
- Start the waiver process immediately to meet strict deadlines.
- Keep copies of all correspondence, forms, and supporting documents.
- Document special hardships clearly—include medical, educational, or caregiving expenses.
- If you miss the application deadline, request a late filing waiver citing good cause.
- Seek free legal help through Pennsylvania Legal Aid Network (PA Legal Aid).
- Consider professional Medicaid planning to protect assets before applying.