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HOUSE BILL NO. 5922
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
by amending section 112g (MCL 400.112g), as added by 2007 PA 74.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 112g. (1) Subject to section 112c(5), the department of 1
community health shall establish and operate the Michigan medicaid 2
Medicaid estate recovery program to comply with requirements 3
contained in section 1917 of title XIX. The department of community 4
health shall work with the appropriate state and federal 5
April 29, 2026, Introduced by Reps. MacDonell, Rheingans, Price, Paiz, Dievendorf, Tsernoglou,
Breen, Martus, Hope, Young, Greene, Weiss and Coffia and referred to Committee on
Appropriations.
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departments and agencies to review options for development of a 1
voluntary estate preservation program. Beginning not later than 180 2
days after the effective date of the amendatory act that added this 3
section March 28, 2008 and every 180 days thereafter, the 4
department of community health shall submit a report to the senate 5
and house appropriations subcommittees with jurisdiction over 6
department of community health matters and the senate and house 7
fiscal agencies regarding options for development of the estate 8
preservation program. 9
(2) The department of community health shall establish an 10
estate recovery program including various estate recovery program 11
activities. These activities shall must include, at a minimum, all 12
of the following: 13
(a) Tracking assets and services of recipients of medical 14
assistance that are subject to estate recovery. 15
(b) Actions necessary to collect amounts subject to estate 16
recovery for medical services as determined according to subsection 17
(3)(a) provided to recipients identified in subsection (3)(b). 18
Amounts subject to recovery shall must not exceed the cost of 19
providing the medical services. Any settlements shall must take 20
into account the best interests of the state and the recipient's 21
spouse and heirs. 22
(c) Other activities necessary to efficiently and effectively 23
administer the program. 24
(3) The department of community health shall seek appropriate 25
changes to the Michigan medicaid Medicaid state plan and shall 26
apply for any necessary waivers and approvals from the federal 27
centers for medicare and medicaid services Centers for Medicare and 28
Medicaid Services to implement the Michigan medicaid Medicaid 29
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estate recovery program. The department of community health shall 1
seek approval from the federal centers for medicare and medicaid 2
Centers for Medicare and Medicaid Services regarding all of the 3
following: 4
(a) Which medical services are subject to estate recovery 5
under section 1917(b)(1)(B)(i) and (ii) of title XIX. 6
(b) Which recipients of medical assistance are subject to 7
estate recovery under section 1917(a) and (b) of title XIX. 8
(c) Under what circumstances the program shall must pursue 9
recovery from the estates of spouses of recipients of medical 10
assistance who are subject to estate recovery under section 11
1917(b)(2) of title XIX. 12
(d) What actions may be taken to obtain funds from the estates 13
of recipients subject to recovery under section 1917 of title XIX, 14
including notice and hearing procedures that may be pursued to 15
contest actions taken under the Michigan medicaid Medicaid estate 16
recovery program. 17
(e) Under what circumstances the estates of medical assistance 18
recipients will be exempt from the Michigan medicaid Medicaid 19
estate recovery program because of a hardship. At the time an 20
individual enrolls in medicaid Medicaid for long-term care 21
services, the department of community health shall provide to the 22
individual written materials explaining the process for applying 23
for a waiver from estate recovery due to hardship. The department 24
of community health shall develop a definition of hardship 25
according to section 1917(b)(3) of title XIX that includes, but is 26
not limited to, the following: 27
(i) An exemption for the portion of the value of the medical 28
assistance recipient's homestead that is equal to or less than 50% 29
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of the average price of a home in the county in which the medicaid 1
medical assistance recipient's homestead is located as of the date 2
of the medical assistance recipient's death. 3
(ii) An exemption for the portion of an estate that is the 4
primary income-producing asset of survivors, including, but not 5
limited to, a family farm or business. 6
(iii) A rebuttable presumption that no hardship exists if the 7
hardship resulted from estate planning methods under which assets 8
were diverted in order to avoid estate recovery. 9
(f) The circumstances under which the department of community 10
health may review requests for exemptions and provide exemptions 11
from the Michigan medicaid Medicaid estate recovery program for 12
cases that do not meet the definition of hardship developed by the 13
department. of community health. 14
(g) Implementing the provisions of section 1396p(b)(3) 15
1917(b)(3) of title XIX to ensure that the heirs of persons subject 16
to the Michigan medicaid Medicaid estate recovery program will not 17
be unreasonably harmed by the provisions of this program. 18
(4) The department of community health shall not seek medicaid 19
Medicaid estate recovery if the costs of recovery exceed the amount 20
of recovery available or if the recovery is not in the best 21
economic interest of the state. 22
(5) The department of community health shall not implement a 23
Michigan medicaid Medicaid estate recovery program until approval 24
by the federal government is obtained. 25
(6) The department of community health shall not recover 26
assets from the home of a medical assistance recipient if 1 or more 27
of the following individuals are lawfully residing in that home: 28
(a) The medical assistance recipient's spouse. 29
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(b) The medical assistance recipient's child who is under the 1
age of 21 years, or is blind or permanently and totally disabled as 2
defined in section 1614 of the social security act, 42 USC 1382c. 3
(c) The medical assistance recipient's caretaker relative who 4
was residing in the medical assistance recipient's home for a 5
period of at least 2 years immediately before the date of the 6
medical assistance recipient's admission to a medical institution 7
and who establishes that he or she the medical assistance 8
recipient's caretaker relative provided care that permitted the 9
medical assistance recipient to reside at home rather than in an 10
institution. As used in this subdivision, "caretaker relative" 11
means any relation by blood, marriage, or adoption who is within 12
the fifth degree of kinship to the recipient. 13
(d) The medical assistance recipient's sibling who has an 14
equity interest in the medical assistance recipient's home and who 15
was residing in the medical assistance recipient's home for a 16
period of at least 1 year immediately before the date of the 17
individual's admission to a medical institution. 18
(7) The department of community health shall provide written 19
information to individuals seeking medicaid medical assistance 20
eligibility for long-term care services describing the provisions 21
of the Michigan medicaid Medicaid estate recovery program, 22
including, but not limited to, a statement that some or all of 23
their estate may be recovered. 24
(8) The department of community health shall not charge 25
interest on the balance of any Michigan medicaid Medicaid estate 26
recovery payments. 27
(9) The department of community health shall not place or 28
record a lien on qualifying property under the tax equity and 29
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fiscal responsibility act of 1982, Public Law 97-424 97-248 1
(TEFRA). 2
(10) Unless required by federal law, the department shall not 3
seek Medicaid estate recovery from the amount remaining in a 4
medical assistance recipient's ABLE savings account established 5
under the Michigan achieving a better life experience (ABLE) 6
program act, 2015 PA 160, MCL 206.981 to 206.997. 7
Enacting section 1. This amendatory act does not take effect 8
unless Senate Bill No. ____ (request no. S05839'25) or House Bill 9
No. 5923 (request no. H05839'25) of the 103rd Legislature is 10
enacted into law. 11