17. What is the
OBRA 1993 Act?
Well, I'll just give all my
money away to my kids. Then the government won't get any, will they?
President Clinton put the "whammy" on that idea when he signed
into law the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993), requiring states to
seek recovery of medical assistance paid to individuals who were age 55 when the
assistance was paid. The following is a simplified version of this new rule.
- States are required to recover from the estates of deceased recipients any monies paid
by Medicaid on their behalf whether it was for nursing home stays or other long-term-care
expenses.
- States are able to recover expenditures by seizing any real or personal property or
other assets where the individual had some property interest, including the home held in
the individual's own name.
- Some states have even gone so far as to recover assets that the individual gave away or
otherwise disposed of prior to death; even property held jointly with someone else.
Some states are utilizing the Debit/Credit law to obtain the property.
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