Medicaid estate recovery

[Leja123]

 I have three specific questions that I've spent countless hrs. researching but can't find the answer to and of which my attorney answers vaguely. This is in regard to my parent's death (90 yrs old) and her sole asset which was a co op in her name in Nassau County NY.  She received community Medicaid from 2021 to 2024 and she died in 2024. Medicaid already sent me the affidavit with amount they want to recover which is sizable. I am the adult child / executor. I'm asking because I am the adult child / executor who would like to know when I can withdraw / use that money from the estate account. Questions:

1. What is the timeframe that Medicaid has for estate recovery in New York State? I'm finding mixed AI results online such as 5 years, 6 years, 20 years. 

2. Where can I find a neutral third party to answer these Medicaid questions?

3. Does anyone have great information regarding their experience with negotiating with Medicaid? My attorney said once I receive the letter from them all I have to do is negotiate with them. Well that hasn't happened. They won't return my emails and vm's. I sent them an accounting spreadsheet of my personal expenditures and let them know that the sale of the co op is imminent. 

[GailL1]

I am not a resident of NY but usually the state puts the Medicaid lien on the property and then it prevents it from ever being sold until the debt is paid or by other means and the lien is removed.  

This is from Medicaid.gov - it gives some general info but it is the state where it counts.

Medicaid.gov - Estate Recovery 

Here is some info specifically for NY - From the Office of the Medicaid Inspector General (OMIG) and this is your source for info - they give a contact see #12.

New York Casualty & Estate Recovery - Office of the Medicaid Inspector General 

There is more at the link - I am just posting [copy/paste] the areas that seem to have info related to your questions,

from the NY link

4.   How does New York State Medicaid recover in an estate case? 

Medicaid is paid from disbursement of the recipient’s estate assets. There is a hierarchy of creditors that are paid under the laws that govern estates in New York.  In order, these are:  

1. Funeral expenses.
2. Administrative costs of the estate, including taxes, accounting fees, and reasonable attorneys’ fees.
3. Federal Liens (such as Medicare).
4. State Medicaid qualifies as a preferred creditor and recovers the lien amount after the costs listed above have been satisfied. Medicaid recovers only up to the lien amount or the available estate assets, whichever is less. 

[ME]  ⬆️  These are the places where the estate’s money can be spent - in this order.  

9.   What happens if Medicaid places a real property lien after the recipient passes away? 

If a deceased recipient held interest in real property at the time of death, a lien may be placed on the real property for the Medicaid claim amount. This is to protect Medicaid’s interest to recover from the recipient’s assets or estate. No action is taken on the lien until the real property is sold.  

If there will not be enough proceeds from the sale to satisfy the Medicaid claim in full, the settlement or closing statement will be reviewed and a sale approval letter agreeing to accept the remaining balance in satisfaction of the lien may be issued. The lien will be released once payment is received for the approved amount. If a family member wishes to live in the real property rather than sell it, no recovery will be made until the title or deed is transferred and the recipient’s name is removed. 

12.   How does OMIG’s contract vendor assist with Estate Recovery? 

OMIG’s contract vendor, Health Management Systems, Inc. (HMS, a Gainwell Technologies company), will perform asset research, send letters, contact estate beneficiaries or representatives for information, provide information to support the local county attorneys who appear in court on behalf of the State, and take calls from recipient’s families, their representatives, and other stakeholders about the program in general and about specific cases.  

[ME[   ⬆️  The above # 12 is your contact in NY

16.   There are assets in the deceased Medicaid recipient’s name.  What happens next? 

Please complete the questionnaire and include details regarding those assets. A claim will be filed against the estate in the Surrogate’s Court. You will receive a copy of that claim. 

17.   Why did I receive a letter from Health Management Systems (HMS), Inc.?  Who are they? 

New York State OMIG contracts with a vendor to perform certain casualty and estate recovery tasks. Currently, the vendor is HMS. Their main office is currently located in Texas, but they have offices in Albany, New York as well. 

[ME] there may be other info at the link that is pertinent to your situation - I did not see a time limit listed - I think it goes until the asset is sold and the lien is satisfied unless there is some Undue Hardship (covered in the link) but that does not sound like your situation

Never heard of any negotiations either - as long as it is correct - the want it all or as much as the sell of the asset brings.  .  

Good Luck ~