What are Undue Hardship Waivers?
MERP may waive the recovery of costs from an estate if recovery would result in undue hardship. The state will consider applications for an undue hardship waiver when: • the estate property • has been the site of an operation of a family business, farm, or ranch for at least 12 months prior to the death of the Medicaid recipient, • is the primary income-producing asset of the heirs, • produces at least 50 percent of their livelihood, and • recovery by the state would affect the property and result in heirs losing their primary source of income; • beneficiaries of the estate would be eligible for public or medical assistance if a recovery claim is collected; • allowing one or more heirs to receive the estate enables them to discontinue eligibility for public or medical assistance; • the Medicaid recipient received medical assistance as the result of being a crime victim; or • other compelling reasons exist. MERP may waive recovery of costs from a homestead under the following condition:
