September 20, 2004 - SRS Announces Changes to the Estate Recovery Program

Topeka- New law for the Kansas Estate Recovery program will expand its ability to recover assets. The Estate Recovery Program is used to recover assets owned by a deceased person who received medical coverage through Medicaid. Only people age 55 and over or those who receive long term care services through a nursing facility are affected by the program. If the Medicaid recipient has a surviving spouse, recovery is delayed until the death of the spouse. Estate Recovery is not used when the individual has a surviving minor, blind or children with disabilities. The money collected helps SRS provide medical coverage to other needy Kansans. Medicaid currently pays $610,312,000 for persons age 55 and over. The average monthly payment for a person living in a nursing facility is more than $2600.

The new rules expand the ability to recover assets to include life insurance proceeds, life estates, trust funds and jointly owned property. The changes also allow SRS to place a lien on a home owned by a Medicaid recipient, to allow for recovery should the property be sold prior to death. Liens may only be used if Medicaid pays for at least six months of nursing home facility care. A lien cannot be placed on a home if a spouse, minor or a child with disabilities is still living there.

“The changes made to the estate recovery law will continue to allow us to have an effective recovery program which helps us conserve much needed Medicaid funding to be able to serve as many low income families and individuals as we can,” said SRS Secretary Janet Schalansky. “Although I understand the concerns raised as we move forward to implement these provisions, our estate recovery process has and continues to be operated in a fair and equitable manner and our dedicated staff strives to work effectively with consumers, families, and other responsible parties in the recovery process.”

The new rules go into effect October 1, 2004. People with questions about the new rules can contact their SRS worker by calling 1-888-369-4777.