Limits authority of DHS to impose liens and seek recovery from Medicaid recipient's estate after death.
If enacted, SB 3759 would significantly alter how Medicaid recovery operates in the state. By narrowing the scope of recoverable costs, it would allow recipients to retain more of their assets and savings for their heirs, rather than having these assets subjected to recovery claims after their demise. This change would be a significant shift in state policy, as it would align state practices with minimum federal requirements set out in the Omnibus Budget Reconciliation Act of 1993. The bill also redefines 'estate' to focus on property included in the probate process, potentially shielding various types of assets from recovery that are currently subject to claims.
Senate Bill 3759, introduced in May 2023, proposes amendments to the existing law governing New Jersey's Medicaid estate recovery program. The bill primarily seeks to limit the authority of the Division of Medical Assistance and Health Services (DMAHS) to impose liens and recover costs from the estates of deceased Medicaid recipients. Currently, under New Jersey law, DMAHS is permitted to recover payments for Medicaid services provided to individuals 55 years of age or older. The proposed legislation aims to restrict this recovery to specific types of services, particularly nursing facility services, home and community-based services, and hospital or prescription drug services received concurrently with those facilities or services after the age of 55.
The bill is likely to provoke debate among legislators with varying interests. Proponents, particularly those advocating for Medicaid recipients and their families, argue that it is necessary to allow individuals to preserve their legacy and not be penalized for needing healthcare services in their later years. On the other hand, some lawmakers may express concern about the financial implications for the Medicaid program, questioning how limiting recovery might affect funding and access to services for future enrollees. Overall, the legislation balances the interest in protecting individual assets against the need for sustainable Medicaid funding.