Bill
Bill > S3010
NJ S3010
NJ S3010Limits estate recovery under Medicaid to federal mandated recovery for nursing home care and other long-term care costs.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 modifies New Jersey's Medicaid estate recovery program to align with federal mandates, specifically the "Omnibus Budget Reconciliation Act of 1993," by limiting the state's ability to recover costs from a deceased Medicaid recipient's estate. Previously, the state could seek recovery for all Medicaid services received after age 55, and its definition of "estate" included assets that bypassed probate, such as life insurance or retirement accounts. This bill restricts recovery to only nursing facility services, home and community-based services, and hospital and prescription drug services that were provided concurrently with those long-term care services, and only for recipients who were 55 years of age or older when they received these services. Furthermore, the bill redefines "estate" to include only those real and personal property and other assets that pass to heirs through probate, thereby excluding assets like life insurance, pension benefits, retirement accounts, and jointly owned property that previously could have been subject to recovery. The Division of Medical Assistance and Health Services (DMAHS) is the state agency responsible for administering the Medicaid program and its estate recovery efforts.
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 01/13/2026)
Bill Topics
Health
- ‐ Health Insurance Reform
- ‐ Long-term Care and Elderly Issues
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S3010 | 01/14/2026 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3010_I1.HTM | 01/14/2026 |
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