Back to Virginia

HB855 • 2026

Medicaid; estate recoveries.

<p class=ldtitle>A BILL to amend and reenact § 32.1-326.1 of the Code of Virginia and to repeal § 32.1-327 of the Code of Virginia, relating to Department of Medical Assistance Services; Medicaid estate recoveries.</p>

Healthcare
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Cousins
Last action
2026-03-04
Official status
Continued
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not specify which languages other than English and Spanish will be used on the website.

Medicaid Estate Recovery Changes

This bill limits how much money can be taken from a person's estate after they die if they received Medicaid help for nursing home care, and requires the Department to provide information about estate recovery on its website in multiple languages.

What This Bill Does

  • Limits the Department of Medical Assistance Services to only recover costs that federal law requires when someone who got Medicaid help for nursing facility care passes away.
  • Requires the department to put information about estate recovery and the process for applying for an undue hardship waiver on its website in multiple languages, including English and Spanish.
  • Allows the department to create emergency rules to make sure the new laws work properly.

Who It Names or Affects

  • People who get Medicaid help for nursing facility care
  • The families or heirs of people who got Medicaid help and passed away

Terms To Know

Estate recovery program
A process where the government can take money from a person's estate after they die if that person received certain types of public assistance.
Medicaid
A federal and state program that helps pay for medical care for people with low income or disabilities.

Limits and Unknowns

  • The bill does not specify exactly how much money can be taken from an estate, only that it must follow federal rules.
  • It is unclear if the changes will affect all Medicaid recipients equally or just those who received nursing facility care.

Bill History

  1. 2026-03-04 Finance and Appropriations

    Continued to 2027 in Finance and Appropriations (15-Y 0-N)

  2. 2026-03-03 House

    Fiscal Impact Statement from Department of Planning and Budget (HB855)

  3. 2026-02-26 Education and Health

    Reported from Education and Health and rereferred to Finance and Appropriations (15-Y 0-N)

  4. 2026-02-24 Health

    Assigned Education sub: Health

  5. 2026-02-10 Senate

    Constitutional reading dispensed (on 1st reading)

  6. 2026-02-10 Education and Health

    Referred to Committee on Education and Health

  7. 2026-02-09 House

    Read third time and passed House (87-Y 11-N 0-A)

  8. 2026-02-06 House

    Read second time and engrossed

  9. 2026-02-05 House

    Read first time

  10. 2026-02-03 Health and Human Services

    Reported from Health and Human Services (18-Y 4-N)

  11. 2026-01-29 Social Services

    Subcommittee recommends reporting and referring to Appropriations (7-Y 1-N)

  12. 2026-01-23 Social Services

    Assigned sub: Social Services

  13. 2026-01-23 House

    Fiscal Impact Statement from Department of Planning and Budget (HB855)

  14. 2026-01-13 House

    Prefiled and ordered printed; Offered 01-14-2026 26105065D

  15. 2026-01-13 Health and Human Services

    Referred to Committee on Health and Human Services

Official Summary Text

Department of Medical Assistance Services; Medicaid estate recoveries.
Directs the Department of Medical Assistance Services (the Department) to limit the operation of its estate recovery program to the recovery of only federally required costs. The bill directs the Department to make information on estate recovery available on its website in multiple languages. The bill directs the Department to adopt emergency regulations to implement the provisions of the bill.

Current Bill Text

Read the full stored bill text
A BILL to amend and reenact §
32.1-326.1
of the Code of Virginia and to repeal §
32.1-327
of the Code of Virginia, relating to Department of Medical Assistance Services; Medicaid estate recoveries.

Be it enacted by the General Assembly of Virginia:

1. That §
32.1-326.1
of the Code of Virginia is amended and reenacted as follows:

§
32.1-326.1
. Department to operate program of estate recovery.

As used in this section, "estate" means all real and personal property and other assets includable in the decedent's estate pursuant to Title 64.2.

In accordance with applicable federal law and regulations, including those under Title XIX of the Social Security Act, the Department shall operate a program of estate recovery
for all persons who receive payments or on whose behalf payments are made for Medicaid-financed nursing facility care by the Department
limited to recovering only federally required costs
pursuant to 42 U.S.C. § 1396p(b)(1)(A)
and 42 U.S.C. § 1396p(b)(1)(B)(i)
. The amount recovered from the estate of a deceased recipient shall not exceed the amount of total Medicaid payments made on behalf of such recipient
for recoverable services
under 42 U.S.C. § 1396p(b)(1)(A) and 42 U.S.C. § 1396p(b)(1)(B)(i)
.
The recoverable portion of ma
naged care payments shall be limited to either the portion of the capitated rate that is attributable to recoverable
services under 42 U.S.C. § 1396p(b)(1)(A) and 42 U.S.C. § 1396p(b)(1)(B)(i) or
the capitated rate, whichever is lower
.

The Department may waive its claim against the estate of an indigent or medically indigent person if it determines that enforcement of the claim would result in substant
ial hardship to the heirs or dependents of the individual against whose estate the claim exists. Any such waiver shall be a permanent waiver of recovery
in accordance with federal law
.

2. That §
32.1-327
of the Code of Virginia is repealed.

3. That the Department of Medical Assistance Services (the Department) shall promulgate regulations to implement the provisions of this act to be effective within 280 days of its enactment. To ensure timely publication for the citizens of the Commonwealth, any Commonwealth political subdivision, constitutional officer, or other affected entity required to assist the Department shall have 21 calendar days from receipt of a written request to review and respond. If no response is received within that period, the proposed regulation shall be deemed approved by that political subdivision, constitutional officer, or affected entity.

4. That the Department of Medical Assistance Services shall make information about estate recovery and the process for applying for an undue hardship waiver easily accessible on its website in English, Spanish, and the next four languages most commonly spoken in the Commonwealth according to the most recent American Community Survey data published by the United States Census Bureau.

5. That the Department of Medical Assistance Services (the Department) shall seek the necessary permissions from the Centers for Medicare and Medicaid Services and shall submit any state plan amendments, waivers, or other documentation necessary to implement the provisions of this act. The Department may make changes to provider manuals and regulatory guidance documents as necessary to implement the provisions of this act.