Asset Recovery May Cause People to Avoid Medicaid

A little-known aspect of Medicaid may be causing people to avoid coverage.

In certain cases, states can recoup medical costs by putting a claim on the assets of a deceased person.  Although asset recovery predates Obamacare, the new health-care law does make it apply to a larger pool of people.  And even though states are likely to be hesitant to apply asset recovery on Medicaid recipients, some people still don’t want to take any chances. 

See Sandhya Somashekhar, Little-Known Aspect of Medicaid Now Causing People to Avoid Coverage, The Washington Post, Jan. 23, 2014.

Special thanks to Naomi Cahn (John Theodore Fey Research Professor of Law, George Washington University School of Law) for bringing this article to my attention.