
Governor Ed Rendell is looking for ways to bring money into the beleaguered state coffers, and his latest budget proposal contains a change to how Pennsylvania recovers costs from estates for long-term care spending after a patient dies.
One component of the new bill proposed by Rendell could be devastating to families. After a Medicaid recipient dies, the government would be able to place a lien on any property in which the deceased had an interest, for up to the full amount of care that was covered by Medicaid.
Up until this point the state has avoided counting the home as an asset available for Medicaid recovery, for sound reasons that serve the public interest. By allowing families to keep their homes, neighborhoods are preserved, family farms can stay in the family, and properties maintain clean titles.
This new bill would be a significant change that potentially affects a huge number of people because so many rely on Medicaid to cover the cost of their long-term care. Because long-term care can cost elderly residents $8,000 a month, many families have no other option but Medicaid.
After spending down their personal assets to afford long-term care, families could lose their land and their homes as well if this bill passes. Even worse, critics contend that this provision would only bring in a fraction of what the state pays out in Medicaid every year.
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