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Sell Family Farm to Repay State Nursing Home Costs

Wed, 11/22/2000 - 12:00am — Karen Stevenson
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The Sacramento Bee reported that the state of California is suing Susan Gollas for $120,000 to recoup the cost of caring for her father, Sadao Yorita. Susan placed him in a nursing home when she was no longer able to care for him at home. She found that he qualified for Medi-Cal, since he didn't have the resources to pay for his own care. However, Gollas said she wasn't aware that she would have to pay back the state when her father applied for Medi-Cal. She said she will be forced to sell the 20-acre family farm she inherited from him and now works with her husband, Mario, and their three children.

Many people are unaware that federal law requires states to pursue repayment of nursing home costs from the estates of Medicaid recipients. The program in California collected about $40 million last year from more than 2,400 estates. County welfare offices give Medi-Cal applicants for long-term care printed information explaining that the costs will eventually be recovered, but the regulations are complex and advocates say an estate planner or attorney may be needed to help some understand the consequences. Some of those who are surprised the most have very modest estates, and may not have the education or resources to get professional help.

One thing the article did not mention is that the Federal guidelines provide that states should not recover costs if they cause "undue hardship," for example in the event that the estate is the only income-producing asset for the surviving family. It specifically mentions family farms as an example. Hopefully, Ms. Gollas will retain professional help to protect her family farm, but this story illustrates the fact that many people are unaware of all the consequences of relying on Medicaid for nursing home costs.

The Sacramento Bee reported that the state of California is suing Susan Gollas for $120,000 to recoup the cost of caring for her father, Sadao Yorita. Susan placed him in a nursing home when she was no longer able to care for him at home. She found that he qualified for Medi-Cal, since he didn't have the resources to pay for his own care. However, Gollas said she wasn't aware that she would have to pay back the state when her father applied for Medi-Cal. She said she will be forced to sell the 20-acre family farm she inherited from him and now works with her husband, Mario, and their three children.

Many people are unaware that federal law requires states to pursue repayment of nursing home costs from the estates of Medicaid recipients. The program in California collected about $40 million last year from more than 2,400 estates. County welfare offices give Medi-Cal applicants for long-term care printed information explaining that the costs will eventually be recovered, but the regulations are complex and advocates say an estate planner or attorney may be needed to help some understand the consequences. Some of those who are surprised the most have very modest estates, and may not have the education or resources to get professional help.

One thing the article did not mention is that the Federal guidelines provide that states should not recover costs if they cause "undue hardship," for example in the event that the estate is the only income-producing asset for the surviving family. It specifically mentions family farms as an example. Hopefully, Ms. Gollas will retain professional help to protect her family farm, but this story illustrates the fact that many people are unaware of all the consequences of relying on Medicaid for nursing home costs.