The fact Indiana is now more aggressively pursuing estate recovery for medical assistance provided to seniors makes many attorneys believe this is some new program. Surprisingly, the original Social Security Act of 1935 required states to reimburse the federal government one-half of any amounts collected from recipients of old-age assistance. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) allowed states to impose liens on real estate to recover for medical assistance paid for an individual 65 years of age or older.
Congress mandated Medicaid estate recovery plans for all states as part of the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93). On September 30, 2007, Michigan became the 50th state to enact Medicaid estate recovery rules mandated 14 years earlier by OBRA ’93. The Medicaid estate recovery laws now apply to medical assistance provided on behalf of an individual 55 years of age or older.
