ObamaCare death
debt? States can seize assets to recoup Medicaid costs
Be afraid….Be very afraid of receiving benefits.
Published January 23, 2014
FoxNews.com
Tom Gialanella, 56, was shocked to find out he qualified for Medicaid under
ObamaCare. The Bothell, Wash., resident had been able to retire early years
ago, owns his home outright in a pricey Seattle suburb and is living off his
investments. He wanted no part of the government’s so-called free health care. “It’s
supposed to be a safety net program. It’s not supposed to be for someone who
has assets who can pay the bill,” he said. And after reading the fine print, Gialanella had another reason to flee
Medicaid — the potential death debt.
Though many may not realize it, states are allowed to recover the cost of
health care after someone’s death by seizing their assets. It applies to
Medicaid recipients who are between the ages of 55 and 64. The law has been in
place since 1993, when Congress realized states were going broke over rising
Medicaid expenses. But under ObamaCare, Medicaid eligibility has expanded dramatically along
with the promise that the federal government will pick up the cost of the
higher tab — at least for the first few years, after which states will be on
the hook for a portion of the increase. Millions more are entering the system, perhaps without knowing that their
assets could be at risk.
However, just like Gialanella, others are opting out. A Washington state couple in their early 60’s actually got married recently
so their combined income would keep them out of Medicaid and allow them to
purchase a plan on the health exchange. Filing as individuals, their incomes
had been low enough that they qualified for Medicaid. They married primarily because Sophia Prins owns a home and wants to will it
to her children without any worry that the government will attach a lien for
the cost of her medical care. Prins doesn’t think it’s fair to go after the
assets of people who get government assistance through Medicaid, but not those
getting taxpayer subsidies through the exchange plans.
The story prompted Washington’s Democratic governor, Jay Inslee, to issue an
emergency rule change. It says the state may only recover the cost of nursing
home care provided to Medicaid recipients in that 55-64 age group. That’s the
minimum allowable under the 1993 law. “We have this population that we want to make sure they have access to
health care,” said state Medicaid Director MaryAnne Lindeblad. “We
want them to get in so they can get the kinds of services that keep them
healthy.” Oregon followed suit. But the 23 other states that expanded Medicaid under
ObamaCare have not changed their estate recovery policies. A lot of money is at
stake.
In 2004, California collected $44.6 million through estate recovery. It’s a
number that is certain to rise dramatically. MediCal officials tell Fox News
they expect 1 million-2 million additional enrollees by 2015. Minnesota, a much smaller state than California, managed to collect $25
million in 2004. It, too, is keeping its estate recovery policy in place.
Critics see a money grab.
“I think that people are maybe in for a shock when they find out their
heirs are going to be paying for their care, because they got into a system
under false pretenses,” said Dr. Jane Orient of the Association of
American Physicians and Surgeons, a group opposed to the Affordable Care
Act. The estate recovery law is so under the radar right now that interest groups
like the AARP are still studying how it will play out under ObamaCare for
seniors.
ObamaCare. The Bothell, Wash., resident had been able to retire early years
ago, owns his home outright in a pricey Seattle suburb and is living off his
investments. He wanted no part of the government’s so-called free health care. “It’s
supposed to be a safety net program. It’s not supposed to be for someone who
has assets who can pay the bill,” he said. And after reading the fine print, Gialanella had another reason to flee
Medicaid — the potential death debt.
health care after someone’s death by seizing their assets. It applies to
Medicaid recipients who are between the ages of 55 and 64. The law has been in
place since 1993, when Congress realized states were going broke over rising
Medicaid expenses. But under ObamaCare, Medicaid eligibility has expanded dramatically along
with the promise that the federal government will pick up the cost of the
higher tab — at least for the first few years, after which states will be on
the hook for a portion of the increase. Millions more are entering the system, perhaps without knowing that their
assets could be at risk.
so their combined income would keep them out of Medicaid and allow them to
purchase a plan on the health exchange. Filing as individuals, their incomes
had been low enough that they qualified for Medicaid. They married primarily because Sophia Prins owns a home and wants to will it
to her children without any worry that the government will attach a lien for
the cost of her medical care. Prins doesn’t think it’s fair to go after the
assets of people who get government assistance through Medicaid, but not those
getting taxpayer subsidies through the exchange plans.
emergency rule change. It says the state may only recover the cost of nursing
home care provided to Medicaid recipients in that 55-64 age group. That’s the
minimum allowable under the 1993 law. “We have this population that we want to make sure they have access to
health care,” said state Medicaid Director MaryAnne Lindeblad. “We
want them to get in so they can get the kinds of services that keep them
healthy.” Oregon followed suit. But the 23 other states that expanded Medicaid under
ObamaCare have not changed their estate recovery policies. A lot of money is at
stake.
number that is certain to rise dramatically. MediCal officials tell Fox News
they expect 1 million-2 million additional enrollees by 2015. Minnesota, a much smaller state than California, managed to collect $25
million in 2004. It, too, is keeping its estate recovery policy in place.
heirs are going to be paying for their care, because they got into a system
under false pretenses,” said Dr. Jane Orient of the Association of
American Physicians and Surgeons, a group opposed to the Affordable Care
Act. The estate recovery law is so under the radar right now that interest groups
like the AARP are still studying how it will play out under ObamaCare for
seniors.