By skyforbes 
HealthFirst Colorado, the state’s Medicaid program, has ways of getting back the money it paid for an indigent person’s care. One of those ways is by siphoning off the top of a deceased patient’s estate.
I received a letter from the state this week alerting me that my estate may be garnished when I die. I am not terribly concerned about this as I doubt I will have many assets when I pass. And I’ll be dead. And I have nobody to leave anything to.
According to the letter, the state may be able to infringe upon your estate if you:
· Are currently residing in an institution.
· Are age 55 or older and receive nursing facility services and related hospital and
prescription drug services.
· Are age 55 or older and receive home and community-based services and related hospital
and prescription drug services.
“Estate recovery is required by federal law,” the letter stated. “The program helps pay the costs of providing care to Health First Colorado members. The law says the State of Colorado is required to take money from a member’s estate after they die to help repay costs for certain health care services the member received. Members may be enrolled in managed care organizations. Capitation payments and premium payments made to the managed care organization(s) may be included in the Medicaid estate recovery claim against an estate.”
Assets limited to $2,000
Most people have spent down their assets by the time they apply for Medicaid. In Colorado, you can’t make more than $2,829 for seniors or have assets totaling more than $2,000, according to the American Council on Aging. I am not sure why I received the letter, as I have a year to go until age 55, unless they consider Fusion Studios, the permanent supportive housing complex where I live, an “institution.” I have heard rumblings before about how you can rebound from homelessness and build an estate again only to have it garnished by Medicaid. Some people collect assets well beyond the $2,000 value limit and don’t report them.
I do sometimes believe I may someday work a full-time job again outside of freelance opportunities. If I were to land an editing job like those I used to have, I could reasonably save enough money to buy a car. That would be an asset. Or, if I want to really dream big, I possibly could buy a house again even after experiencing homelessness. It would be a happy ending.
My friends likely will get nothing
But not for whomever would stand to inherit my house, which I still believe is a far-fetched dream, but anything is possible. I know Medicaid has pumped hundreds of thousands of dollars into my health care. My estate could be hundreds of thousands dollars and Medicaid likely still would get it all.
The letter I received from the state instructs me to “Please provide information about your resources if they have changed. Provide information about the type of resources you have and their value. Resources include houses, land, vehicles, bank accounts and other investments.”
I imagine I would be upset if I did manage to rebound in such a way that I acquired assets again, only to be disallowed the pleasure of donating them when I’m dead. The Denver law firm of Robinson and Henry, P.C., offer some online advice for people afraid of losing homes that surviving loved ones may be living in. The firm advises that Medicaid looks back on your finances five years when you apply, so if you want to spend down your estate you need to begin doing it sooner than that. It’s wise to have a long-term financial plan long before you are in a situation where you have to apply for Medicaid, according to the law firm.
Exceptions to the rule
There are times when the state won’t seize the house, the law firm advises. “If there is a surviving spouse living in the primary residence of the deceased Medicaid recipient’s home, the state will not try to take the house for reimbursement. Other exceptions include if the decedent’s adult sibling lived with them for at least one year prior to them going into the nursing home and has lived there continuously since, and when an adult child lived with the Medicaid recipient for at least two years prior to their entry into a nursing home and their care allowed the delay of nursing services. The adult child must also have continued to live in the home since the Medicaid recipient went into the nursing home.”
They say you can’t take it with you, and the state of Colorado will see to it that you don’t if they ever pay for your healthcare. What are your thoughts on this policy? Feel free to leave your answers in the comments.
Originally published at https://original.newsbreak.com.