Estate Recovery Program

09/2008

The Estate Recovery Program recovers medical care costs from the estates of certain deceased Medicaid consumers. The Estate Recovery Unit (ERU) has recouped approximately $42 million from 19,000 cases since the start of the program. Under federal law, the State agency is allowed to establish a claim for Medicaid on consumers who, prior to their death:

The agency will not establish a claim for persons only receiving coverage under the Medicare Savings Program(QMB and LMB).

In Kansas, ERU mostly recovers through probate actions and family agreements. The unit does not pursue a claim at the time of death if there is:

Upon the death of the surviving spouse, ERU can file a claim in that spouse's estate for the Medicaid paid on behalf of the recipient's spouse. The medical assistance claim is a first class claim against the estate of the deceased. The medical assistance claim is junior to reasonable funeral expenses. It is a higher ranking claim to all other creditors. Currently, no liens are filed against the property of a recipient or the recipient's spouse in order to establish a claim prior to the individual's death. The medical assistance claim is filed against property that is still available at the time of death.

The ERU uses several means to recover property. These include, but are not limited to, agreements with heirs, claims against financial accounts, and filing of probate actions. In some circumstances, the heirs of the deceased may choose not to initiate probate proceedings. In these instances, ERU determines whether to proceed with probate. This decision is based on the amount of the agency's claim, value of estate assets, presence of other creditors, and any other relevant information.

Since July 1, 2004, ERU has had increased authority to recover property through liens and court actions involving an expanded definition of a probate estate. These provisions have similar recovery limitations to those noted above. Specific questions should be directed to ERU.

An example of total collections for a five years period is below. The State of Kansas retains approximately 40% of all monies recovered.

FISCAL SUMMARY - From Fiscal Years 2001 to 2005

For more information see the Estate Recovery Brochure (.PDF)

If you have questions about the program, you may contact Estate Recovery at (785) 296-6707 or write Estate Recovery Unit at Division of Health Policy and Finance, P.O. Box 2428, Topeka, KS., 66601.