What is Medicaid Estate Recovery?

Estate recovery, a process that recoups certain Medicaid costs after a patient’s death, has been criticized for falling disproportionately on low-income individuals and raising little revenue. Many families are surprised to discover that their homes may be repossessed after a family member’s death. This has prompted proposals to limit or modify estate recovery practices. A study of state policies showed that over half use estate recovery beyond federally required circumstances, and variable approaches to granting hardship exemptions create equity concerns.