MaineCare 'Estate Recovery': Will Maine take the house from my spouse?
Maine's Medicaid program is known as MaineCare. Mainers who find themselves or their spouse in a nursing home through this program can find themselves in a confusing financial situation.
Art asked the CBS13 I-Team:
"I'm told if your spouse passes away while on MaineCare, the state will let you, the surviving spouse, live in the house, but if you sell, you have to give the proceeds back to MaineCare. Is the surviving partner really left with nothing?"
Art is talking about something called "Estate Recovery."
If you are a senior, and the state is paying for your care under Medicaid, a federal law gives the state legal rights to be reimbursed for whatever you owned at the time of your death.
"It's a topic that scares people because they're scared of being homeless,” said Barbara Schlichtman, a Maine estate planning attorney.
Schlichtman says Art's concern is a common misconception she hears daily.
She says the statecannot impoverish a surviving spouseto pay for long-term care costs.
"There are exceptions to estate recovery, and one of those exceptions is if there is a surviving spouse,” Schlichtman said.
The Maine law and exceptions can be found here under 2-I C (1) & (2).
Meaning, Art could sell his house and keep the proceeds.
But there are scenarios where the state can put a lien on your family home once you're gone.
It's a complicated topic and Schlichtman says the best thing you can do is talk to someone versed in the law: An estate planning attorney. But the CBS13 I-Team is also looking into it right now to hopefully provide advice to Mainers in the coming weeks.
If it's something that's impacted your family and you would like to share your story to help bring awareness to others, the CBS13 I-Team would like to hear from you.
You can reach out to the I-Team via email at tips@wgme.com or call (207) 228-7713.