Detailed Answer
When you receive an inheritance and you previously accessed Medicaid benefits in Hawaii, the state may seek to recover those benefits from your estate. However, you can ask for a hardship waiver if enforcing recovery causes undue financial hardship to your heirs. Below is a step-by-step guide to applying under Hawaii law.
1. Understand Hawaii’s Estate Recovery and Hardship Waiver
Under Hawaii Revised Statutes §346-51.5, the Department of Human Services (DHS) must attempt to recover Medicaid costs from the estates of deceased beneficiaries age 55 or older. You can request a hardship waiver if recovery would deprive your heirs of necessary support or deprive you of essentials during your lifetime. For federal requirements, see 42 C.F.R. §433.36.
2. Verify Hardship Waiver Eligibility
- You must be the personal representative or heir of the deceased Medicaid beneficiary.
- Recovery must pose an undue hardship—e.g., force heirs out of their primary home.
- Prove that your heir’s income or assets fall below Hawaii’s low-income thresholds.
- Demonstrate that the inheritance includes the primary residence or only significant asset.
3. Gather Required Documentation
- Death certificate of the Medicaid recipient.
- Letters of administration or testamentary appointing you as personal representative.
- Property deed or title showing inherited real property.
- Current household budget, including mortgage, utilities, and medical expenses.
- Proof of heir income: pay stubs, Social Security statements, or tax returns.
- Any additional evidence of undue hardship (e.g., physician’s statement if property sale would affect health).
4. Complete the Medicaid Hardship Waiver Application
Obtain Form ERHW-1 (“Estate Recovery Hardship Waiver Application”) from the Med-QUEST Division website or by contacting:
Hawaii DHS Med-QUEST Division
Estate Recovery Section
P.O. Box 700190
Kapolei, HI 96709-0190
Submit the completed ERHW-1 and all supporting documents by certified mail. Keep a copy of every page for your records.
5. DHS Review, Decision, and Appeals
DHS must review your application and notify you in writing within 90 days. If approved, DHS will waive recovery against the specified property. If denied, you may request an administrative hearing under HRS Chapter 91. The notice will explain how to file your appeal and the deadline (usually 30 days from notice).
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Start early: Collect documents as soon as possible to avoid delays.
- Be thorough: Incomplete applications often lead to denials.
- Keep records: Send documents by certified mail and retain your receipts.
- Meet deadlines: Note the DHS decision deadline and appeal period.
- Seek guidance: Consider a consultation with an elder-law attorney in Hawaii.