Americans are shocked to find Medicaid can claim their homes for deceased relatives’ health costs, with many sued unexpectedly. Unaware of this process, U.S. citizens are caught off guard by lawsuits.
The Fine Print Dilemma
Medicaid, a joint tax-funded insurance program, aims to assist the poorest citizens with medical expenses. However, a little-known clause permits the government to seize family homes to settle the deceased’s medical debts, as all states must try to recoup care costs from the deceased’s assets.
Medicaid’s Age Clause and Personal Impact
For those over 55, homes aren’t safe from Medicaid claims, as a Massachusetts woman discovered following her father’s death from cancer. Sandy LoGrande faced a $177,000 bill and the threat of losing her father’s home, stating, “The home was everything.”
A Lengthy Legal Battle
Sandy LoGrande spent two years fighting Massachusetts legally after her father’s death. Initially advised by a nonprofit to enroll her father in Medicaid, she was told their home would only be at risk if he entered a nursing home, a condition that never materialized.
Settlement and Widespread Issue
After a grueling two-year dispute, Massachusetts settled with Sandy LoGrande, lifting the claim on her home. Yet, many Americans aren’t as fortunate, with states like New York and Ohio recouping over $100 million in Medicaid costs by claiming the homes of deceased individuals.
Calls for Reform
In states like Arizona and Alaska, home claims by Medicaid are rare. Congresswoman Jan Schakowsky criticizes Medicaid’s property claims as cruel, highlighting widespread ignorance of the risk among Americans.
Hope For Change
Advocating for change, she deems the program inefficient and harmful. The 1993 mandate for asset recovery might be revised to make state participation optional, following recommendations for its repeal.
