Bill

Bill > S3010


NJ S3010

NJ S3010
Limits estate recovery under Medicaid to federal mandated recovery for nursing home care and other long-term care costs.


summary

Introduced
01/13/2026
In Committee
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

bill text


bill summary

Loading...

bill summary

Loading...

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
Loading...