NAELA Calls for Legislative Action to End Medicaid Estate Recovery

VIENNA, Va., Jan. 7, 2026 /PRNewswire/ -- The National Academy of Elder Law Attorneys (NAELA), the leading professional association dedicated to improving the quality of legal services for older adults and individuals with disabilities, called on Congress today to pass the Stop Unfair Medicaid Recoveries Act. The legislation, reintroduced by Representative Jan Schakowsky (D-Ill.), would end the federal requirement that states go after the estates of Medicaid beneficiaries to recoup the costs of their long-term care.

Federal law requires states to seek repayment for Medicaid nursing home care, home and community-based services, and related hospital and prescription drug services after a beneficiary dies. Because a person's home is generally excluded from consideration when they apply for Medicaid — and they typically have no more than $2,000 in other assets — their home is often the only significant financial asset that can be used to satisfy a claim when Medicaid seeks to recoup the cost of care. As a result, when the beneficiary dies, family members may face the loss of their family home, harming their ability to achieve the American Dream of homeownership.

Medicaid Estate Recovery:

• Is the only federal program that requires repayment for services.
• Recouped between 0.1% and 1% of states' Medicaid costs in fiscal year 2019, the most recent year available.
• Disproportionately affects low-income families and individuals who have faced historic barriers to homeownership, such as people of color and individuals with disabilities.
• Impacts people who were once middle class but had to exhaust their savings to cover medical care and services.

"Medicaid is the only federal program that sends an invoice to the grieving. As elder law attorneys, our members represent families who have played by the rules, only to find that the 'help' they received from the government was actually a lien against their family's future," NAELA President Eric Einhart said. "We applaud Representative Schakowsky for her continued efforts to end this harmful practice and ensure that no one has to choose between receiving the health care they need and passing on their family home to the next generation."

To learn more about Medicaid Estate Recovery, including stories of impacted individuals in their own words, visit the NAELA Foundation webpage.

About NAELA
The National Academy of Elder Law Attorneys (NAELA) is the leading professional association dedicated to improving the quality of legal services for older Americans and individuals with disabilities. With more than 4,000 members and 33 active state chapters, NAELA provides elder and special needs law attorneys with education, advocacy, community, and the resources they need to better serve their clients. Learn more at NAELA.org.

SOURCE National Academy of Elder Law Attorneys (NAELA)