New Mexico Medicaid Estate Recovery

No. New Mexico 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.

Recovery is generally blocked or delayed for: Surviving spouse: recovery is made only after the death of the recipient's surviving spouse, if any (claim deferred while a spouse survives); Surviving child under age 21: recovery deferred while the recipient is survived by a child under 21; Blind or disabled child of any age: recovery deferred while the recipient is survived by a child of any age who is blind or who meets the Social Security Administration definition of disability and receives SSI or SSA disability benefits; Undue hardship waiver: HCA or its designee may waive recovery where it would work an undue hardship on the heirs (case by case, must be requested with documentation); Partial reduction: HCA-MAD may compromise, settle, reduce, or waive a claim when in the best interest of the state and consistent with state and federal law.

HCA seeks repayment from the estate of deceased Medicaid members who were age 55 or older when they received long-term care services. Recoverable costs include nursing facility services, home and community based services (HCBS), and related hospital and prescription drug services. Recovery is limited to assets subject to probate and cannot exceed the value of the estate; heirs are not personally liable. At this time HCA-MAD does not place a lien on a living member's property.

Yes. New Mexico offers an undue-hardship waiver. Contact New Mexico Health Care Authority (HCA), Medical Assistance Division (MAD) - Estate Recovery Program at 800-293-3973 to request the waiver and ask about deadlines.

New Mexico Health Care Authority (HCA), Medical Assistance Division (MAD) - Estate Recovery Program, phone 800-293-3973, https://www.hca.nm.gov.