From 24/7 Wall St. · David Beren · · 1m 40s
Medicaid Estate Bill Waived for Caregiver
Son's nine-year home care qualifies for $140k Medicaid waiver under state hardship rules.
In brief
Son's nine-year home care qualifies for $140k Medicaid waiver under state hardship rules. A son who lived in his mother's home for nine years on $31,000 annually qualifies for a Medicaid estate recovery waiver that cancels a $140,000 bill. Originally reported by 24/7 Wall St..
Medicaid Estate Recovery Bill
After a mother died on Medicaid, her state sent her estate a $140,000 bill for care costs and named the house as collateral.
Hardship Waiver Rule
A state hardship waiver can cancel a six-figure estate recovery bill if a caregiver meets specific criteria.
Son's Caregiving History
The son lived in the house with his mother for nine years on $31,000 annually before her Medicaid care began.
State Hardship Criteria
Pennsylvania requires three tests: continuous residence for two years, no other permanent home, and at least two years of caregiving.
Income Threshold
The son's household income of $31,000 is $920 under the 200% federal poverty level of $31,920 for one person.
Claim Waiver Process
Heirs must document residence with tax returns, utility bills, and caregiving with physician letters to request a waiver within 30 days.
State-Specific Rules
Virginia exempts homes worth 50% or less of the county median price, while Pennsylvania bars creditors from asking for waivers.
Deadline for Action
A six-month gap in residence can break eligibility, and some states only delay recovery until the heir sells the house.
What Happens Next
The son can avoid selling his mother's house by meeting the state's hardship waiver criteria within the deadline.
The one thing
A son who lived in his mother's home for nine years on $31,000 annually qualifies for a Medicaid estate recovery waiver that cancels a $140,000 bill.
