Once someone else pays the bills, the nursing home resident is at the mercy of the payor. This not always desirable when Medicaid pays the bills. The program is designed to recover the costs of all forms of long-term care provided to a Medicaid beneficiary from that person's estate or the estate of his or her spouse. The state can recover an amount equal to the total medical assistance paid. States are allowed to recover money from countable asset, exempt assets, transferred assets, and assets in a trust.
States have the right to collect insurance or annuity proceeds from beneficiaries.
But she will recover the proceeds of a garage sale if the heirs sell the personal property. Money that was transferred to an individual before the look-back period took effect can be recovered. It is happening. States recover money from trusts. Funds in the Miller Trust, discussed above to help someone quality for Medicaid, go to the state.