Yesterday, Representative Jan Schakowsky (D-IL) introduced the Stop Unfair Medicaid Recoveries Act, which would repeal the federal requirement that states recoup Medicaid costs from family members of deceased individuals who received nursing facility or home-based care. Justice in Aging strongly supports the bill and its aim to rid Medicaid of this unjust policy that perpetuates poverty and inequality. 

Recoupment of Medicaid payments, known as estate recovery, often forces heirs to sell a family home that otherwise would have been passed down. Because home ownership is one of the few ways to build generational wealth, estate recovery disproportionately harms families and communities of color. This law is one of the most obviously inequitable federal policies in health care. It exacerbates the harm of racist policies that produced the racial wealth gap, which is highest for Black families. It also discriminates against older adults and people with disabilities by requiring states to pursue repayment for their use of Medicaid, which can dissuade people who need long-term care only available through Medicaid from enrolling. 

“By forcing the sale of family homes, Medicaid estate claims keep families in poverty, perpetuate the racial wealth gap, and increase the risk of homelessness,” says Eric Carlson, Director of Long-Term Services and Supports Advocacy at Justice in Aging. “The Stop Unfair Medicaid Recoveries Act will relieve low-income older adults from having to choose between getting the care they need or risking their family home.”

Justice in Aging calls on Congress to take meaningful action toward closing the racial wealth gap by passing The Stop Unfair Medicaid Recoveries Act. 

We are looking for families who have experienced Medicaid estate recovery to share their stories to educate members of Congress and seek their support for this legislation. If you know of any families who would be willing to share their story, please contact: info@justiceinaging.org

Read more about the bill and access our issue brief, Medicaid Estate Claims: Perpetuating Poverty & Inequality for a Minimal Return.