Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified Arkansas attorney for guidance.
Detailed Answer
Arkansas Medicaid estate recovery allows the Department of Human Services (DHS) to recoup Medicaid benefits paid on behalf of a deceased recipient. Under Arkansas Code § 20-77-150, DHS must file claims against the decedent’s estate, including inherited real property. The process typically follows these steps:
1. Identify the Estate Assets
When a Medicaid recipient dies, DHS reviews eligibility records and beneficiary assets. Estate assets include any real or personal property solely titled in the decedent’s name at death. If you inherit property, notify DHS promptly to avoid surprise claims.
2. Send Notice to Personal Representative or Heirs
Under Arkansas Code § 20-77-150(b), DHS must provide written notice of its intent to recover. This notice goes to the personal representative appointed in probate or, if none, to known heirs. It outlines the claim amount and deadline to respond or dispute.
3. File a Claim in Probate Court
DHS files a formal claim against the estate in the probate court handling the decedent’s succession. This document states the total Medicaid benefits paid and requests reimbursement from estate assets, including inherited property.
4. Obtain Court Approval and Record a Lien
Once the probate court reviews and approves the claim, DHS may record a lien or judgment against real property. The lien secures DHS’s recovery interest in the inherited home or land.
5. Sell or Satisfy the Lien
To satisfy the claim, the court may order a sale of the property or allow an heir to redeem the asset by paying the lien amount. Proceeds from any sale pay DHS first, with any remainder distributed to heirs.
6. Request a Hardship Waiver
An heir facing undue hardship—such as loss of a family home—can apply for a waiver under Arkansas Code § 20-77-151. File the waiver request in writing with DHS before enforcement of the lien.
Helpful Hints
- Review probate court schedules early to spot DHS’s claim deadline.
- Maintain records of all Medicaid benefits paid for the decedent.
- Consult an attorney when preparing a hardship waiver application.
- Investigate joint tenancy or trust arrangements; some assets may be exempt.
- Understand federal requirements under 42 U.S.C. § 1396p.