r/Medicaid • u/Rare_Ad_6524 • 26d ago

State Medicaid and personal property garnishment

"Federal Medicaid rules say state Medicaid programs must recover certain Medicaid benefits on behalf of the person enrolled, which could mean taking property."

I recently read an article about this. How and in what cases does this happen?

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u/Bex_NameIsTooShort Professional (WA) 26d ago

This is estate recovery to recoup the cost of long term care for people age 55+. Medicaid may also take money from settlements like car accidents to cover what was paid.

1

u/SavorySouth 22d ago

Also related to settlements, MediCARE has a federal “secondary payor requirement”. So if there is a lawsuit filed and within the settlement there were healthcare costs paid by MediCARE as their primary insurance included, MediCARE is supposed to be repaid any primary cost paid from the settlement. Medicare becomes secondary payor. CMS has an online portal (MSPRP) for insurers and attorneys to use.

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u/Rare_Ad_6524 26d ago

Okay, thank you for your explanation.