On June 2, 2022, the Illinois legislature repealed a law that previously allowed the State of Illinois to place liens on real estate owned by Medicaid recipients to recover Medicaid benefits paid through the Aid to the Aged, Blind, or Disabled (AABD), Medical Assistance Grant (MAG) and Medical Assistance No Grant (MANG) Medicaid programs.
While this does not prevent the State of Illinois from filing a claim against an individual’s estate after their death to recover Medicaid benefits paid on their behalf, it does leave the real property free of any liens or encumbrances. This can make transferring the property much easier, however, proceeds received from the sale may be subject to Medicaid recovery.
As with other areas of the law, there are numerous federal and state law provisions that work together with the Public Aid Code. You should consult with an attorney to explore all of your estate planning options before you or a loved one are faced with the realities of long-term hospital or nursing home care.