Can Medicaid Recover Life Insurance Proceeds?

My mother recently passed and she was receiving benefits from Medicaid prior to her death. She had no real assets, property, money, etc or will, except for a life insurance policy through her employer. She named me as the beneficiary of the policy.


According to New Jersey federal and state law, Social Services through the Department of Medical Assistance (Medicaid) has the right to attempt to recover all Medicaid payments for services my mother received while she was living.

My question is can they claim the life insurance policy which names me as the beneficiary of her policy?

Comments for Can Medicaid Recover Life Insurance Proceeds?

Average Rating starstarstarstarstar

Click here to add your own comments

Jun 11, 2011
Rating
starstarstarstarstar
Life Insurance Medicaid Recoupment
by: Gabriel Heiser

The only possible way that proceeds of a life insurance policy can be attached by the state for Medicaid recoupment following the death of the Medidaid recipient is if the policy proceeds were payable to the recipient's estate or to a trust in those states that recoup against trusts.

If your mother had been the owner of the policy then the state could possibly have made a claim against the cash value. However, since it appears that her employer--and not her--was the owner, and the proceeds were not payable to her estate, then the state has no claim against the proceeds.

You can find answers to similar questions at www.medicaidsecrets.com.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Medicaid Questions.

Subscribe to
Estate Planning Hub


Your First Name


Your E-mail Address

We keep this private.



Follow the Estate Planning Blog.




--by Beth Heikkinen
Marquette, Michigan
I just want to thank you for this site. It answered my questions. I think many people that do research on the net take it for granted and when they find what they are looking for they forget "someone put time, money, etc into providing me with this information."

Thank you!


Like This Site





Visit Our Social Media Pages

Become a Fan of Estate Planning Hub on Facebook Follow EstatePlanningHub on Twitter Follow EstatePlanningHub on Google+ Subscribe EstatePlanningHub Video on YouTube

Get a PDF version of this website and its sister site here.