Arizona Medicaid Estate Recovery

After someone who received Medicaid long-term care dies, Arizona can file a claim against their estate. This guide explains what is recovered, who is protected, and how to ask for relief.

Based on A.R.S. 36-2935 (Estate recovery program; liens); federal baseline 42 U.S.C. 1396p(b); undue hardship A.A.C. R9-28-911 and partial recovery R9-28-912

By Settled Estate EditorialPublished: June 28, 2026Updated: June 28, 2026

Probate estate only

Recovery reach

55+

Age when care was received

Yes

Hardship waiver

What Arizona recovers

AHCCCS recovers the total of long-term care payments it made on behalf of Arizona Long Term Care System (ALTCS) members who received benefits at age 55 or older on or after January 1, 1994. Recoverable amounts include monthly capitation payments to program contractors, reinsurance, fee-for-service payments, and (for services on or before December 31, 2009 only) Medicare cost-sharing and Medicare Part A and B premiums. Costs for ALTCS benefits provided before the member turned 55 are not included. The claim is filed against the deceased member's property that is subject to a Small Estate Affidavit or probate, up to the amount of ALTCS payments made.

Arizona recovers only from the probate estate. Assets that pass outside probate, such as joint property with survivorship, life estates, living trusts, and transfer-on-death or pay-on-death accounts, are generally beyond recovery.

55 or older. Recovery applies to ALTCS long-term care benefits received at age 55 or older on or after January 1, 1994 (consistent with the federal 42 U.S.C. 1396p(b) baseline). Costs for benefits provided before age 55 are excluded.

Who is protected from recovery

Surviving spouse (Estate Claim Statutory Exemption; AHCCCS delays recovery while the spouse survives)

Surviving child under age 21 (Estate Claim Statutory Exemption)

Surviving child of any age who is blind or disabled and meets SSA or SSI disability criteria (Estate Claim Statutory Exemption)

Sibling with an equity interest in the home who lived there at least one year before the member was institutionalized (TEFRA lien not enforced)

Caregiver child who lived in the home at least two years before the member was institutionalized and provided care that kept the member out of a facility (TEFRA lien not enforced)

Undue hardship waiver for an heir who continuously resided in the home for at least one year before the member's death, still resides there, plans to remain, and owns no other real property and meets all AHCCCS undue hardship criteria (A.A.C. R9-28-911)

Property that may be exempt

Assets that pass outside the probate estate and are not subject to a Small Estate Affidavit (Arizona recovers only against the probate estate)
A home held in joint tenancy with right of survivorship while a co-owner is still living (recoverable only if the joint owner is also deceased so the property passes by Small Estate Affidavit or probate)
Property protected by an Arizona Long-Term Care Partnership Program policy, which reduces the AHCCCS claim by the amount of resources excluded under the policy
Property owned by Native Americans who are members of federally recognized Indian tribes (recovery limited by federal law)
ALTCS costs for benefits provided before the member turned 55

Undue-hardship waiver

Arizona can waive recovery when it would cause an undue hardship for the heirs. Contact Arizona Health Care Cost Containment System (AHCCCS) at 602-417-4531 to request the waiver and confirm deadlines.

Hardship waiver information

Frequently asked questions

Does Arizona recover Medicaid costs from non-probate assets?

No. Arizona recovers only from the probate estate, so assets that pass outside probate, such as joint tenancy with right of survivorship, life estates, living trusts, and transfer-on-death or pay-on-death accounts, are generally beyond recovery.

Who is protected from Medicaid estate recovery in Arizona?

Recovery is generally blocked or delayed for: Surviving spouse (Estate Claim Statutory Exemption; AHCCCS delays recovery while the spouse survives); Surviving child under age 21 (Estate Claim Statutory Exemption); Surviving child of any age who is blind or disabled and meets SSA or SSI disability criteria (Estate Claim Statutory Exemption); Sibling with an equity interest in the home who lived there at least one year before the member was institutionalized (TEFRA lien not enforced); Caregiver child who lived in the home at least two years before the member was institutionalized and provided care that kept the member out of a facility (TEFRA lien not enforced); Undue hardship waiver for an heir who continuously resided in the home for at least one year before the member's death, still resides there, plans to remain, and owns no other real property and meets all AHCCCS undue hardship criteria (A.A.C. R9-28-911).

What does Arizona Medicaid recover after death?

Can I apply for an undue-hardship waiver in Arizona?

Yes. Arizona offers an undue-hardship waiver. Contact Arizona Health Care Cost Containment System (AHCCCS) at 602-417-4531 to request the waiver and ask about deadlines.

Who handles Medicaid estate recovery in Arizona?

Arizona Health Care Cost Containment System (AHCCCS), phone 602-417-4531, https://www.azahcccs.gov.

Agency and statute sources

State of Arizona Medicaid Estate Recovery Program brochure (DE-810, rev 02/2026), AHCCCS

Arizona Revised Statutes 36-2935, Estate recovery program; liens (Arizona State Legislature)

Settling an estate with a Medicaid claim?

Use the Arizona probate assessment to organize the estate and see how the claim fits the process.

Start Assessment Browse Arizona Probate Guides

Information current as of June 28, 2026

This content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Arizona can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.