Understanding Florida’s Medicaid Recovery Program: What Families Need to Know

Understanding Medicaid can be challenging for many families, especially when it involves Medicaid recovery. In Florida, like in other states, the Medicaid Recovery Program is a significant consideration for those who have received Medicaid benefits. 

This program is designed to recoup costs the state has expended on behalf of Medicaid recipients after their death. Learning how this procedure works and what assets may be at risk is crucial for planning and peace of mind.

This article addresses common concerns, such as the responsibility of heirs for Medicaid benefits and whether Medicaid can pursue your estate after your passing. 

What is the Medicaid Estate Recovery Program in Florida?

The Medicaid Estate Recovery Program is a federally mandated program that requires states, including Florida, to seek reimbursement for Medicaid expenses from the estates of deceased Medicaid recipients. These expenses typically cover nursing home care, home and community-based services, and related hospital and prescription drug services provided to individuals 55 and older.

The goal of the program is to recoup funds for the state’s Medicaid program from estates that can pay, thereby helping to sustain the program for future beneficiaries. Consulting with a Medicaid planning attorney is crucial to knowing how the program functions and can help you protect your assets. 

How Does the Process Work?

When the Medicaid recipient passes away, the state may initiate the estate recovery process to recoup the costs of medical care provided. This includes all property owned at the time of death and other assets that pass through probate. Probate is the legal method through which a deceased person’s will is validated and their assets are distributed. 

Notification and Claim

The procedure begins with the state identifying deceased Medicaid recipients who have received benefits subject to retrieval. The state then sends a notice to the estate or its representative, indicating its intent to file a claim for the amounts paid for Medicaid services.

Exemptions and Limitations

It’s important to note that not all property is subject to recoupment by Medicaid. For example, Florida law provides protections for surviving spouses, minor children, and children with certain disabilities, delaying the process until after their death or when they no longer meet the exemption criteria. Additionally, there are thresholds below which an estate will not be pursued, aimed at not imposing undue hardship on the families of deceased Medicaid recipients.

What Assets Can Be Subject to Recovery?

Knowing which assets are at risk is a crucial concern for many families. In general, any asset that is part of the probate property can be subject to recovery. This includes:

Real property: consists of any real estate owned by the deceased, including their primary residence if it is part of the estate.

Personal property: Items like cars, jewelry, and other personal belongings.

Bank accounts and securities: Any funds or securities owned solely by the deceased and part of the estate.

However, assets outside of probate are typically not subject to recovery. These can include:

  • Life insurance policies with a named beneficiary (other than the estate)
  • Retirement accounts with a named beneficiary
  • Property owned jointly with rights of survivorship

Planning and Protection

Effective planning is crucial to protect assets from Medicaid recoupment, especially for those contemplating long-term care. This may involve setting up trusts, transferring property before it becomes subject to recovery, or exploring other legal strategies to shield assets while complying with Medicaid eligibility requirements.

Consulting with an estate planning attorney knowledgeable about Medicaid rules in Florida is essential for those who may require Medicaid and want to know which assets are subject to Medicaid recovery or are concerned about going into a Florida nursing home. 

Hardship Waivers

The state of Florida acknowledges that, in some cases, Medicaid recovery can impose undue hardship on survivors. Under certain conditions, heirs or estate representatives can apply for a hardship waiver to reduce or eliminate the claim. Criteria for hardship waivers vary, but they generally consider the financial impact on survivors and whether the estate’s assets are of sentimental value and not just monetary value. 


The Florida Medicaid Estate Recovery Program plays a critical role in sustaining the program, but it also poses challenges and considerations for families planning their estates, including Medicaid planning. Ensuring that your estate plan reflects the current law is essential. 

Learning the ins and outs of this process, what assets may be at risk, and how to prepare effectively can alleviate some of the stress and uncertainty associated with estate recovery. It can also ensure that you qualify for Medicaid benefits when the time comes. 

Every state is different, and it’s important to speak with an attorney to understand the current law in your jurisdiction fully and to know what steps to take after the death of the Medicaid recipient. An attorney can also discuss eligibility for Medicaid and explain how Medicaid could impact your estate plan. 

With proper planning and legal advice from a Florida elder law attorney, like The Estate, Trust & Elder Law Firm, families can navigate these waters more confidently, ensuring their loved ones are protected and their legacies secured. 

The Estate, Trust, and Elder Law Firm is here to assist you with your Medicaid, elder law, or estate planning needs. Contact us at (772) 828-2588 or attend a free event to get started on your journey.

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