SCHAKOWSKY INTRODUCES LEGISLATION TO PROTECT FAMILIES OF MEDICAID RECIPIENTS
WASHINGTON – RealEstateRama – U.S. Representative Jan Schakowsky (IL-09), Co-Founder and Co-Chair of the House Democratic Task Force on Aging and Families, reintroduced the Stop Unfair Medicaid Recoveries Act of 2024. This legislation would repeal the federal mandate that requires state Medicaid programs to go after families and estates for repayment of Medicaid long-term care services.
“Imagine losing a loved one and putting them to rest, only to have Medicaid come knocking on your door demanding you now pay for the long-term care your departed relative received – an amount that has reached, in some cases, hundreds of thousands of dollars. Sadly, this is the reality for thousands of American families each year due to the federally mandated Medicaid Estate Recovery program. Often the only means for Medicaid to reclaim this money is by seizing the family home causing incredible emotional and financial suffering to the beneficiary’s family. Since 2021, this mandate has stripped 17,000 families in Illinois of their homes. This practice is a well-kept secret with devastating and shocking consequences,” said Congresswoman Jan Schakowsky.
Current federal law requires state Medicaid programs to seek repayment of Medicaid long-term care benefits, even if the state would prefer not to seek that recovery. The Medicaid program’s claim is enforced against the heirs of the deceased Medicaid recipient.
“Our nation must implement a real long-term care policy,” Schakowsky continued. “Medicaid is the only public benefit program that requires states to seek repayment for long-term care services. In many cases, Medicaid estate recovery keeps families in poverty and forces seniors and disabled individuals to forego care. Further, Medicaid estate recovery disproportionately harms low-income, blue-collar families and communities of color. That is why I have re-introduced the Stop Unfair Medicaid Recoveries Act, which would ban states from going after the families of deceased Medicaid recipients. Practices like putting liens on Medicaid recipients’ homes before their death would also be prohibited. Let’s give our seniors and their families dignity and peace of mind. This current system, which only recovers less than 1% of total long-term care spending, is ineffective and unjust, and it must end.”
Consider a widow who owns a $90,000 family home and has two adult children, each of whom has a limited income. The widow suffers a stroke and then lives in a nursing home for a few years, with all but the first month covered by Medicaid. After she dies, the Medicaid program sends an invoice to the adult children for $150,000 for nursing home services. To pay the claim, the adult children must sell the family home and give all the proceeds to the state.
“By forcing the sale of family homes, Medicaid estate claims keep families in poverty, perpetuate the racial wealth gap, and increase the risk of homelessness,” says Eric Carlson, Director of Long-Term Services and Supports Advocacy, Justice in Aging. “The Stop Unfair Medicaid Recoveries Act will relieve low income older adults from having to choose between getting the care they need or risking their family home.”
“Consumer Voice is extremely grateful to Representative Schakowsky for reintroducing this bill. The estate recovery program is an outdated system that punishes low income Medicaid recipients and their families who take advantage of long term care supports and services. It also serves as a barrier to access to services, since many eligible individuals forgo necessary care out of fear of losing their home. This bill would make access to LTSS easier, remove the financial and housing burden on low income families, and ensure that individuals are able to receive care without fear of repercussion,” said Sam Brooks, Director of Public Policy at Consumer Voice for Quality Long-Term Care.
“These laws harm all families of individuals with disabilities–taking homes away from them just because their loved ones happen to need long-term services and support. These laws also disproportionately harm families of color, particularly Black families, because estate recovery hinders homeownership and prevents families from building intergenerational wealth. Black families already face lower homeownership rates due to historic and ongoing discriminatory lending and housing practices. The National Health Law Program, as long standing advocates, enthusiastically endorses the Stop Unfair Medicaid Recoveries Act and urges the 118th Congress to enact it to tackle systemic inequities in health care and housing,” said Jennifer Lav, Senior Attorney at the National Law Health Program.
The Stop Unfair Medicaid Recoveries Act is cosponsored by Reps. Doris Matsui (CA-06), Yvette Clarke (NY-09), Debbie Dingell (MI-12), Mike Quigley (IL-05), Mark Pocan (WI-02), Mary Gay Scanlon (PA-05), Jesus G. “Chuy” Garcia (IL-04), Ayanna Pressley (MA-07), Nanette Barragan (CA-44), Raul M. Grijalva (AZ-03), Lori Trahan (MA-03), Steve Cohen (TN-09), and Ilhan Omar (MN-05).
The Stop Unfair Medicaid Recoveries Act is endorsed by Justice in Aging, Center for Medicare Advocacy, National Consumer Voice for Quality Long-Term Care, National Health Law Program (NHeLP), and Families USA.
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