State Can Recover Medicaid Benefits Paid Before Recipient Received Estate Recovery Notice

A Michigan appeals court rules that the state may recover Medicaid benefits paid to a recipient before the recipient received notice about the potential for estate recovery. In re LaMarche Estate (Mich. Ct. App., No. 327428, Sept. 22, 2016).

Approximately one year after Angeline LaMarche began receiving Medicaid benefits, the state of Michigan gave her notice that it could attempt to recoup Medicaid payments on her behalf from her estate. After Ms. LaMarche died, the state filed a claim to recover $107,310.76 in Medicaid benefits.

The estate denied the claim, arguing that the state could not recover the amount spent before it provided Ms. LaMarche with notice. The probate court relied on In re Estate of Keyes (Mich. Ct. App., No. 320420, April 16, 2015) in ruling that the state gave Ms. LaMarche proper notice. The estate appealed.

The Michigan Court of Appeals affirms, holding that the state may recover the full amount of Medicaid benefits paid because it gave Ms. LaMarche proper notice. According to the court, the decision in Keyes that the estate had proper notice and opportunity to contest the estate recovery is dispositive of the issues in this case and the court is bound by the Keyes decision.

For the full text of this decision, go to: https://publicdocs.courts.mi.gov/OPINIONS/FINAL/COA/20160922_C327428_34_327428.OPN.PDF

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