What is Medicaid estate recovery, and can it take the house?
Last reviewed 2026-07-31
Estate recovery is a Medicaid rule that runs after a person dies. States must seek repayment from the estates of people 55 and older who got long term care. Federal rules bar recovery while a spouse, a child under 21, or a blind or disabled child survives. Hardship waivers must exist.
What happened
Someone in the family is on Medicaid, or has just died. A letter or a rumor says the state can claim the house. That is estate recovery. It is a Medicaid rule, and federal law puts limits on it.
What usually applies
Estate recovery runs after death, not before. It applies to people 55 and older. States must try to recover what Medicaid paid for nursing home care. That also covers home and community based services. It covers related hospital and drug costs too. States may go after other Medicaid costs. They may not go after Medicare cost sharing paid under a Medicare Savings Program. Federal rules bar recovery while a spouse is alive. The same is true for a child under 21, or a blind or disabled child. Every state must have a way to waive recovery for undue hardship. A lien while the person is still alive is a different rule.
“State Medicaid programs must recover certain Medicaid benefits paid on behalf of a Medicaid enrollee. For individuals age 55 or older, states are required to seek recovery of payments from the individual's estate for nursing facility services, home and community-based services, and related hospital and prescription drug services.”
“States have the option to recover payments for all other Medicaid services provided to these individuals, except Medicare cost-sharing paid on behalf of Medicare Savings Program beneficiaries.”
“States may not recover from the estate of a deceased Medicaid enrollee who is survived by a spouse, child under age 21, or blind or disabled child of any age. States are also required to establish procedures for waiving estate recovery when recovery would cause an undue hardship.”
“States may also impose liens on real property during the lifetime of a Medicaid enrollee who is permanently institutionalized, except when one of the following individuals resides in the home: the spouse, child under age 21, blind or disabled child of any age, or sibling who has an equity interest in the home.”
What to do
- 1
Find out which benefits were paid
Recovery is tied to long term care and related costs. Ask the state for the exact amount and the years.
- 2
Check who survives the person
A spouse, a child under 21, or a blind or disabled child changes what a state may do. Tell the state in writing.
- 3
Ask for the hardship waiver form
Every state must have a way to waive recovery for undue hardship. Ask for it before the deadline.
- 4
Ask about Medicare Savings Program costs
States may not recover Medicare cost sharing paid under those programs. Ask if part of the bill is that.
Ask the state for its estate recovery notice and its hardship waiver form. Deadlines after a death are short. An elder law attorney or a legal aid office can read the claim with you. Your local 211 line can help you find one.
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Sources
- Medicaid.gov, Estate RecoveryRetrieved 2026-07-31
Last reviewed 2026-07-31