What is a Texas MERP Claim?
What is a Texas MERP Claim?
By Stephen K. Ganske
A MERP claim refers to the “Medicaid Estate Recovery Program” claim in Texas. The Medicaid Estate Recovery Program (MERP) is managed by the Texas Health and Human Services Commission (HHSC) to recover certain Medicaid costs from the estate of a deceased Medicaid recipient.
What is MERP for?
The main goal of MERP is to recover taxpayer dollars spent on Medicaid benefits, specifically the costs associated with long-term care and related services. This might include nursing home care, community-based services, and hospital services received during a long-term care Medicaid program.
The state can only recover from a decedent’s probate estate, which includes property and other assets that pass under a will or by intestacy. Texas does not include assets in living trusts, joint tenant bank accounts, life estates, or other non-probate assets in the recovery.
Are there limits on MERP recovery?
Texas will not file a MERP claim against the estate if there’s a surviving spouse, a child under 21, or a child who is blind or permanently disabled. There are also hardship waiver provisions where recovery would result in undue hardship for heirs. If the recovery would cause an undue hardship, heirs or estate representatives may apply for a hardship waiver. An example of an undue hardship is when the estate property is the sole income-producing asset of the heirs, like a family farm or business.
Texas law does have some specific provisions related to real property. For instance, the state may not recover against a homestead if the Medicaid recipient’s heirs are living in the home, and it is of modest value (as defined by federal guidelines).
What to do if you receive a MERP claim notice?
If you receive notice that Texas HHSC intends to file a MERP claim against the estate of a deceased family member, it’s essential to respond within the specified time frame.
You should consult an Attorney. Given the complexities associated with MERP, it’s wise to consult with an attorney who is familiar with Texas Medicaid and estate planning laws. They can guide you through the process and inform you of any exemptions or protections you might qualify for.
You should also consult an attorney about the possibility of pre-planning before a MERP claim can be filed. If you or a loved one anticipates requiring Medicaid for long-term care, it might be beneficial to meet with an estate planning attorney in advance. They can provide guidance on how to best structure assets to limit the potential impact of MERP, the nuances of the program, and how it might impact estate assets in Texas.
This article is not legal advice. If you have questions about this article, have received a MERP claim notice for a deceased loved one, or wish to discuss estate planning or probate in Texas, contact the trusted and experienced estate planning attorneys at Moore Ganske Murr pllc, who are prepared to assist in navigating your estate planning and probate matters.