Detailed Answer
What Is Medicaid Estate Recovery?
Colorado’s Medicaid Estate Recovery program allows the state to recover medical costs paid on behalf of a Medicaid recipient from the recipient’s probate estate, including certain inherited real property. Under C.R.S. § 25.5-4-327, HCPF may file a claim against the estate of a deceased recipient who was age 55 or older or permanently institutionalized.
When Can You Request a Hardship Waiver?
If selling inherited property would cause you significant financial hardship—such as loss of your primary residence or inability to pay critical living expenses—you may qualify for a hardship waiver. HCPF evaluates your income, necessary living costs, and how sale of the property would affect your housing stability. See 10 CCR 2505-10, Rule 8.528, which sets out the criteria and procedures for a hardship waiver.
Step-by-Step Application Process
- Review the Estate Recovery Notice
After a loved one’s passing, HCPF sends a Notice of Estate Recovery. It details the amount claimed and explains your right to request a hardship waiver. - Gather Supporting Documents
Collect proof of your household income, monthly living expenses (rent/mortgage, utilities, insurance), and statements showing how sale of the property would impact your daily life. - Complete the Hardship Waiver Application
Obtain HCPF’s Hardship Waiver Application (Form HCPF 111). Fill in all required fields, describe your hardship clearly, and attach supporting documents. - Submit Your Request
Mail the completed application and documentation within 30 days of the notice date to: Colorado HCPF
Estate Recovery Unit
1570 Grant Street, MS B230
Denver, CO 80203
- Confirm Receipt and Track Your Case
Call HCPF to confirm they received your packet. Ask for an estimated decision date (HCPF typically acts within 60 days). - Appeal If Needed
If HCPF denies your waiver request, you may appeal by requesting an administrative hearing under C.R.S. § 25.5-4-305.5 within 30 days of the denial.
After You Apply
HCPF reviews your financial information and may contact you for clarification. If the waiver is granted, the estate recovery claim on your inherited property will be suspended or reduced. Keep copies of all communications and decision letters for your records.
Helpful Hints
- Begin gathering documents as soon as you receive the notice to avoid missing deadlines.
- Provide clear, up-to-date financial statements and bills.
- Explain in detail how loss of the property would harm your living situation.
- Keep organized copies of every form and correspondence you send or receive.
- Consider consulting an attorney experienced in elder law or estate recovery for complex cases.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For advice on your specific situation, consult a qualified attorney.