Schakowsky Introduces Legislation to Stop Harassment of Surviving Family Members of Deceased Medicaid Recipients

WASHINGTON – This week, Congresswoman Jan Schakowsky (D-IL), a Senior Chief Deputy Whip and Co-Founder and Co-Chair of the House Democratic Task Force on Aging and Families, introduced the Stop Unfair Medicaid Recoveries Act. This legislation would repeal the federal requirement that state Medicaid programs go after families and estates for repayment of Medicaid long-term care services.

"Imagine losing a loved one and putting them to rest, only to have Medicaid come knocking on your door demanding you now pay for the long-term care your departed relative received - an amount that has reached, in some cases, hundreds of thousands of dollars. Sadly, too many families experience this traumatic, horrific and cruel situation all the time. It is a well-kept secret with devastating and shocking consequences to families," said Congresswoman Schakowsky.

Current federal law requires state Medicaid programs to seek repayment of Medicaid long-term care benefits, even if the state would prefer not to seek that recovery. The Medicaid program's claim is enforced against the heirs of the deceased Medicaid recipient.

Consider a widow who owns a $90,000 family home and has two adult children, each of whom has a limited income. The widow suffers a stroke and then lives in a nursing home for a few years, with all but the first month covered by Medicaid. After she dies, the Medicaid program sends an invoice to the adult children for $150,000 of nursing home services. To pay the claim, the adult children must sell the family home and give all the proceeds to the state.

"This practice must end now," said Congresswoman Schakowsky. "Our nation does not have a real long-term care policy. Short of that, Americans going through the loss of a family member are being forced into the streets or into another generation of mortgage debt, to hang on to homes their relatives spent their lives paying for. That is why I have introduced the Stop Unfair Medicaid Recoveries Act, which would ban states from going after the families of deceased Medicaid recipients. Practices like putting liens on Medicaid recipients' homes before their death would also be prohibited. Let's give our seniors and their families dignity and peace of mind."

Several organizations have voiced their support for this legislation:

"By forcing the sale of family homes, Medicaid estate claims keep families in poverty and increase the risk of homelessness," says Eric Carlson, Directing Attorney, Justice in Aging. "The Stop Unfair Medicaid Recoveries Act will fix this problem so that low-income persons don't have to risk the family home in order to receive needed long-term care."

"California Advocates for Nursing Home Reform is thrilled to support Representative Schakowsky's bill to eliminate Medicaid estate recovery," says Patricia McGinnis, Executive Director of California Advocates for Nursing Home Reform. "It's about time we stopped punishing seniors and disabled individuals simply because they cannot afford private health care. Indeed, these recovery programs have turned Medicaid into an expensive loan rather than a benefit."

"Medicaid estate recovery disproportionately affects people with disabilities and their families—particularly those struggling to afford housing, long term services and supports, and other home and community-based services," says Bethany Lilly, Senior Director of Income Policy, The Arc of the United States. "The Arc is proud to support this legislation because it will help protect and expand the financial security of people with disabilities and their families."

"Caring Across Generations is proud to support this legislation that will stop the attempts to recover funds for services that everyone should have access to when they need them, long-term services and support," says Nicole Jorwic, Chief of Advocacy and Campaigns, Caring Across Generations. "Ending this policy that disproportionally impacts communities of color, people with disabilities and low-income families, will break a cycle of poverty and allow dignity for those who require these supports, and allow comfort to those Medicaid recipients at the end of their lives, knowing they can leave what they choose to their loved ones."

"Medicaid estate claims prevent families from building generational wealth through homeownership, exacerbating existing economic inequities," says Jennifer Lav, Senior Attorney at the National Health Law Program. "These rules are especially detrimental to families of color that have lower homeownership rates because of discriminatory lending and housing policies, and the families of people with disabilities, who need months or years of long-term services and supports. As long-time advocates, the National Health Law Program strongly supports The Stop Unfair Medicaid Recoveries Act and calls on Congress to pass it as a means of addressing systemic inequities in both health care and housing."

The Stop Unfair Medicaid Recoveries Act is endorsed by Justice in Aging, California Advocates for Nursing Home Reform, The Western Center on Law and Poverty, The Arc of the United States, Caring Across Generations, The National Domestic Workers Alliance, Families USA, and Easterseals.

Original cosponsoring Members are Representatives Doris Matsui, Yvette Clarke, Rosa DeLauro, Debbie Dingell, Mike Quigley, Lucille Roybal-Allard, Mark Pocan, Mary Gay Scanlon, Danny Davis, Jesús "Chuy" García, and Ayanna Pressley.

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