Estate Recovery Details

There is an Estate Recovery Unit in Boston that keeps track of what its name implies. Only in very limited situations will the system not pursue an estate. In fact, it is set up to go after estates and the probate courts inform MassHealth as part of their process. The term "estate" is not limited simply to real estate (land and buildings), but to everything that the deceased owned.

The MBR is used for MassHealth (Medicaid), Disability and Commonwealth Care. However, there is no langauge on this contract that specifically excludes Commonwealth Care from the estate recovery program. Therefore, whether or not the program applies to Commonwealth Care is not legally known to an applicant who must either sign this binding contract or be in noncompliance with the insurance mandate, not only risking medical debt but also subject to income tax penalties. 

The Connector et al have been notified and are aware since at least fall 2007 that this clause is a problem for potential enrollees, yet, although it has revised the MBR twice - in November 2007 and January 2008, as of July 2008, no full disclosure regarding this clause has been added. The spoken word is not legally binding but the contract you are signing is.

The form as it is would allow your estate to be recovered depending on your age. The exact wording from page 7 of the application is: "I understand that if I am aged 55 or older, after I die, MassHealth may be able to get back money from my estate." ("May" means has the right to . . .) 

In a recent letter dated June 25, 2008 to state senator Ben Downing, JudyAnn Bigby, Secretary of Health and Human Services in the Patrick administration, stated that after "thoughtful conversation and analysis among MassHealth, Connector and Administration and Finance staff," the estate recovery clause is expected to be on the next revision of the MBR with new language that will be added as follows: "Under current practice, this does not apply to Commonwealth Care." 

There is an Estate Recovery Unit in Boston that keeps track of what its name implies. Only in very limited situations will the system not pursue and take an estate. In fact, it is set up to go after estates and the probate courts inform MassHealth as part of their process. The MBR is used for MassHealth (Medicaid), Disability and Commonwealth Care. However, there is no language on this contract that specifically excludes Commonwealth Care from the estate recovery program.