The Medicaid Clawback: How the State Quietly Inherits Your Parent’s House

Most families think Medicaid is a safety net. It is actually a loan program secured by your childhood home.

If you believe your parents are leaving you their three-bedroom suburban home, you might want to look closely at their state's estate recovery laws. For millions of middle-class families, the inheritance they expect is already being quietly spent on long-term care, one month at a time. The state is not running a charity; it is running a loan program with a collection agency attached. When a parent goes on Medicaid to pay for a nursing home, the government keeps a tab, and after they pass away, the state will send your family a bill for every single dollar.

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