Article on Michigan’s Medicaid Estate Recovery Law

Alexandra Smith, (University of Detroit Mercy Law Review) has recently published an article entitled, Widening the Gap Between Rich and Poor: Issues and Recommendations for the Implementation of Michigan’s Medicaid Estate Recovery Law, (2012).  Provided below is the abstract from LexisNexis: 

Imagine learning that at age 90 your Great Aunt Josephine has passed away, and she has left you items from her estate and appointed you as the executor (or “personal representative” in Michigan). After your appointment as the personal representative, you receive a letter from the State of Michigan requesting payment for past expenses that the state paid on behalf of your Aunt Josephine. For the last two years, Aunt Josephine has been in a nursing home. The state is now requesting reimbursement for the two years of nursing home costs that it paid on behalf of Aunt Josephine. In the 1970s Aunt Josephine fell on hard times. She lost her job and she collected unemployment for six months. You are surprised that the state is asking for the reimbursement of nursing home expenses. You are wondering if the state can also ask for reimbursement of unemployment payments? You have never heard of reimbursing the state for services rendered. Can the State of Michigan ask for reimbursement of Aunt Josephine’s nursing home costs? Are there other costs for which the state can request reimbursement?

Under Michigan’s newly implemented Medicaid Estate Recovery Act, Michigan can recover nursing home and other medical costs from Aunt Josephine’s estate. In 2007, with the threat of losing federal Medicaid funding, Michigan was the last state to pass a Medicaid estate recovery act.