HR6951-119

What This Bill Does

The Stop Unfair Medicaid Recoveries Act amends Social Security Act section 1917, the Medicaid lien and estate-recovery statute. For liens imposed under section 1917(a)(1)(B), States must withdraw any lien in effect within 90 days after enactment and notify each affected individual, legal representative, or estate representative. For estate recovery under section 1917(b), the bill prohibits any adjustment or recovery of medical assistance correctly paid on behalf of an individual under a State Medicaid plan from being initiated, maintained, or collected on or after enactment. States must also withdraw existing liens tied to correctly paid medical assistance within 90 days and notify affected parties both of the lien withdrawal and the new prohibition on adjustment or recovery.

Who Benefits and How

Medicaid recipients and estates benefit because correctly paid medical assistance could no longer be recovered from property after death or through existing liens. Surviving family members benefit when a home or estate is no longer subject to State Medicaid recovery for covered care that was properly paid. Elder-law attorneys and legal-aid clinics benefit from a clearer federal rule they can invoke for clients facing lien notices.

Who Bears the Burden and How

State Medicaid agencies must stop collection activity, identify active liens, withdraw those liens within 90 days, notify individuals or estate representatives, update recovery procedures, and absorb the loss of estate-recovery collections. State budget offices and taxpayers may bear higher Medicaid net costs because recoveries that previously offset spending would be unavailable. County or contractor recovery units must comply with the federal prohibition and revise notices, databases, and collection workflows.

Key Provisions

• Amends Medicaid lien rules to require States to withdraw covered existing liens within 90 days.
• Prohibits States from initiating, maintaining, or collecting estate recoveries for correctly paid Medicaid assistance after enactment.
• Requires States to notify affected individuals, legal representatives, or estates when liens are withdrawn.
• Requires States to notify affected parties that recovery of correctly paid medical assistance is prohibited.
• Shifts the financial effect of unrecovered Medicaid costs from recipients' estates to State Medicaid budgets and taxpayers.