On September 6, 2024, Governor Maura Healey signed a long-term care oversight bill, an Act to improve quality and oversight of long-term care, into law. One significant provision of this law reduces the scope of the Massachusetts estate recovery program for MassHealth recipients over the age of 55.
Estate Recovery and MassHealth: What You Need to Know
MassHealth is the state program that administers Medicaid in Massachusetts. Under federal law, states are required to seek reimbursement for the cost of long-term care funded by Medicaid, but states may seek reimbursement beyond the Federal mandate. Until recently, Massachusetts required estate recovery for individuals over the age of 55 who were on MassHealth and incurred costs unrelated to long-term care, such as hospital and doctor care, prescription drugs, physical therapy, and other services.
In order to pay the estate recovery bill after the death of a loved one receiving MassHealth, many families are forced to sell the decedent’s home. This has a disproportionate impact on families with limited means. Given the disparate impact on lower-income families with elderly relatives, advocates sought to reduce the scope of Massachusetts estate recovery, which they believed was overly aggressive.
How the New Law Eases the Burden on Families
With the passing of this new law, Massachusetts estate recovery is now limited to the Federal minimum requirement. This means that the estates of individuals receiving MassHealth who are 55 and over are no longer required to reimburse the state for healthcare costs unrelated to long-term care. Long-term care costs, including the cost of nursing and assisted living facilities, are still recoverable pursuant to federal law. Additionally, the reform goes a step further to entirely eliminate estate recovery for people with disabilities receiving assistance under MassHealth’s CommonHealth program.
If you would like to discuss how this new law may affect you and your estate plan, contact our office at info@MulhallWithrow.com or give us a call at (781) 381-5287 to schedule a consultation. Our attorneys at Mulhall Withrow are ready to help.