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Bill > S4297


NJ S4297

NJ S4297
Limits estate recovery under Medicaid to federal mandated recovery for nursing home care and other long-term care costs.


summary

Introduced
03/24/2025
In Committee
03/24/2025
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill amends the law governing the State's Medicaid estate recovery program and limits the authority of the Division of Medical Assistance and Health Services (DMAHS) in the Department of Human Services to impose a lien and seek recovery from a Medicaid recipient's estate after death. This bill is designed to allow Medicaid recipients to preserve certain assets and savings for their heirs, while also meeting the minimum federal requirements for the State's Medicaid estate recovery program pursuant to the "Omnibus Budget Reconciliation Act of 1993," Pub.L.103-66. Currently, New Jersey's Medicaid estate recovery program pursues recovery of payments provided through the Medicaid program for all services received on or after the age of 55. This bill would restrict recovery to the federal required minimum for estate recovery. Specifically, under this bill, the DMAHS would be limited to pursuing recovery for costs associated with nursing facility services, home and community-based services, and hospital and prescription drug services provided concurrently with nursing facility or home and community-based services received on or after the age of 55. Finally, this bill would restrict the definition of "estate" to real and personal property and other assets included in the Medicaid recipient's estate as defined in N.J.S.3B:1-1. In doing so, recovery would be limited to all property and assets that pass from a decedent to his or her heirs under probate law. Currently, the New Jersey Medicaid estate recovery program utilizes an expanded definition of "estate" which enables DMAHS to also recover from some or all property that bypasses probate, such as life insurance, pension benefits, retirement accounts, and jointly owned real estate and accounts.

AI Summary

This bill amends New Jersey's Medicaid estate recovery program to limit the state's ability to recoup Medicaid expenses from a recipient's estate after death. Currently, the state can recover payments for all services received after age 55, but this bill would restrict recovery to only nursing facility services, home and community-based services, and hospital and prescription drug services provided concurrently with those care services. The bill also narrows the definition of "estate" to only include real and personal property that passes through probate, eliminating the current practice of recovering from assets that bypass probate like life insurance, pension benefits, retirement accounts, and jointly owned property. This change is designed to help Medicaid recipients preserve more assets for their heirs while still meeting the federal minimum requirements for estate recovery established by the Omnibus Budget Reconciliation Act of 1993. The bill requires the Commissioner of Human Services to seek necessary state plan amendments or waivers to implement these changes and secure federal financial participation.

Committee Categories

Health and Social Services

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 03/24/2025)

bill text


bill summary

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bill summary

Document Type Source Location Created
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/S4297 03/17/2025
BillText https://pub.njleg.gov/Bills/2024/S4500/4297_I1.HTM 03/25/2025
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