Michigan Medicaid estate recovery: what families should know

The short answerMichigan can recover what Medicaid paid for certain long-term care services from the estate of a person who got them after age 55. It can never recover more than Medicaid paid. The State lists exceptions, including a surviving spouse and a child who is under 21, blind or permanently disabled, and families can ask for a hardship waiver within 60 days of the notice. MDHHS decides each case, and this may or may not apply to your family.

Some families worry about estate recovery when deciding whether to apply. Here is what the State's pages say; your situation may differ. Already Caring is not a government agency, and this is not legal advice. For your own situation, ask an elder law attorney.

What estate recovery is

In Michigan, MDHHS runs the program, with a contractor, HMS, handling the work. The State's bulletin MSA 11-20 says recovery began July 1, 2011, and cites the federal rule 42 CFR 433.36 as its basis.

MDHHS says it will not recover more than Medicaid paid.

Who it applies to

In its 2011 documents, MDHHS says estate recovery applies to Medicaid beneficiaries who are 55 or older and who received long-term care services. Its bulletin says recovery is sought when a single beneficiary dies, or when a surviving spouse dies if there was a qualifying spouse.

Which services count? The State's pages are not identical, so we quote them separately:

• Bulletin MSA 11-20 lists nursing facility care, MI Choice waiver services, home health, home help, and hospital or prescription drug services.
• An MDHHS letter from 2011 (L 11-15) lists nursing facility care, home and community-based services (home health agency, home help, MI Choice waiver and PACE), hospice, and hospital and prescription drug services given while the person was receiving those services.
• The State's brochure says only "long-term care services" and names none.

So the State's published notices do name Home Help. We could not open a current MDHHS page that lists the services, so please confirm with MDHHS. Our guides on the Home Help program and PACE and Home Help explain the programs themselves.

What can be recovered, and the home

MDHHS says recovery reaches the estate, meaning property that passes through probate court, such as a home, a car, insurance money and bank accounts. It also says the State will not seek recovery of certain Medicare cost-sharing benefits.

The home is part of that picture. The State's brochure says it may decide not to recover if any of these people lawfully live in the home:

• the person's spouse
• a child under 21, or a child who is blind or permanently disabled
• a sibling with an equity interest in the home who lived there at least one year before the person died
• a survivor who lived there at least two years before the person entered a medical facility, and who gave care that let the person stay home

Ask MDHHS how this applies to your family.

The hardship waiver

The State's brochure says hardship can exist when the estate is the survivors' only source of income, such as a family farm or business, when the estate is a home of modest value, or when a survivor would become or stay eligible for Medicaid if recovery happened.

The State's hardship application (form MSA-0008) is more detailed. It asks the applicant to meet one of two tests: the asset is the survivor's main income source, or it is a modest home valued at no more than 50% of the county's average home price at the date of death. It also asks that household resources be $10,000 or less and household income be under 200% of the federal poverty level. The form lists January 2026 monthly limits: $2,660.00 for one person and $3,606.67 for two. It says a hardship that came from estate planning meant to avoid recovery does not count.

The form lists documents to send, such as the will, deeds, tax returns, pay stubs, bank statements and an appraisal. It goes to Third Party Liability, P.O. Box 30435, Lansing, MI 48909. The State's number for questions is 1-844-TPLMDCH. The brochure gives 1-877-791-0435 for the estate recovery unit.

The notice and the deadlines

After a beneficiary age 55 or older dies, the State sends a notice to the estate representative or heirs. It says the State plans to file a claim, the amount, and how to apply for a waiver. The hardship application must be sent no later than 60 days from the date on the cover letter. If the request is denied, the form says the applicant has 60 days to appeal. Keep the notice, note its date, and call the number on it quickly.

If you are deciding whether to apply for care

Whether recovery would apply depends on a person's age, services, estate and who lives in the home. Talk with an elder law attorney before moving or selling any property. The hardship form says a hardship caused by estate planning does not count. See our guides to income and asset limits and the deductible. A local Area Agency on Aging can point you to counseling, and an elder law attorney can advise on your own facts.

Questions families ask

What is Medicaid estate recovery in Michigan?

MDHHS recovers from the estate of a person who got certain Medicaid long-term care services after age 55. It can recover only what Medicaid paid, never more. MDHHS describes the estate as property that passes through probate court.

Does Michigan estate recovery apply to Home Help?

MDHHS bulletin MSA 11-20 lists home help among the services covered, and a 2011 MDHHS letter lists it under home and community-based services. The State's own brochure says only "long-term care services." We could not read a current MDHHS page that lists services, so ask MDHHS to confirm.

Can the State take the home?

The home can be part of the estate. MDHHS says it may decide not to recover if a spouse, a child under 21, or a child who is blind or permanently disabled lawfully lives in the home. Other exceptions exist for some siblings and caregiving survivors.

How long do families have to ask for a hardship waiver?

The State's hardship application must be sent within 60 days of the date on the notice's cover letter. If a request is denied, the form says the applicant has 60 days to appeal.

Who decides?

MDHHS and its estate recovery contractor decide. This guide summarizes published State pages and cannot tell you whether recovery applies to a particular family. An elder law attorney can advise on your own situation.