Michigan House Bill HB5922

Michigan 2025-2026 Regular Session

• Introduced: 4/29/26
• Refer: 4/29/26

Caption

Human services: medical services; claims for recovery against an ABLE account; prohibit. Amends sec. 112g of 1939 PA 280 (MCL 400.112g). TIE BAR WITH: HB 5923'26

Impact

The legislation introduces specific guidelines on how the Medicaid estate recovery process should be carried out. It outlines the necessity for the department to track assets and services of recipients, set parameters on the recovery amounts that can be claimed from estates, and ensure that recovery actions do not exceed the cost of providing medical services. The bill also requires that the best interests of both the state and the deceased's surviving family members be taken into account, thereby aiming to balance state revenue needs with family protections.

Summary

House Bill 5922 proposes amendments to the Social Welfare Act, specifically addressing the Michigan Medicaid estate recovery program. The bill mandates the Department of Community Health to establish and operate this program in accordance with federal regulations, specifically section 1917 of Title XIX. This implies that the state will implement measures to recover funds from the estates of deceased Medicaid beneficiaries who have received long-term care services funded by Medicaid. The bill emphasizes the establishment of an estate preservation program that aims to protect certain assets while ensuring that the state recovers owing funds from eligible estates.

Contention

Notably, the bill includes provisions for hardship exemptions that would prevent estate recovery in cases where the surviving relatives could suffer undue financial distress. This includes guidelines on what constitutes a 'hardship,' potentially exempting certain homesteads and income-producing assets from recovery. Critics, however, may argue that the bill could still place an undue burden on lower-income families relying on Medicaid, raising ethical concerns over the balance between state recovery needs and familial financial insecurity.