Current through Vol. 41, No. 13, March 15, 2024
(a)
General
overview. The Omnibus Budget Reconciliation Act of 1993 mandates the
State to seek recovery against the estate of certain Title XIX members who
received medical care on or after July 1, 1994, and who were 55 years of age or
older when the care was received. The payment of Title XIX by the Oklahoma
Health Care Authority (OHCA) on behalf of a member who is an inpatient of a
nursing facility, intermediate care facility for the mentally retarded or other
medical institution creates a debt to the OHCA subject to recovery by legal
action either in the form of a lien filed against the real property of the
member and/or a claim made against the estate of the member. Only Title XIX
received on or after July 1, 1994, will be subject to provisions of this Part.
Recovery for payments made under Title XIX for nursing care is limited by
several factors, including the family composition at the time the lien is
imposed and/or at the time of the member's death and by the creation of undue
hardship at the time the lien is imposed or the claim is made against the
estate. [See OAC
317:35-5-41.8(a)(3)(H)
for consideration of home property as a countable resource.] State Supplemental
Payments are not considered when determining the countable income. The types of
medical care for which recovery can be sought include:
(1) nursing facility services;
(2) home and community based
services;
(3) related hospital
services;
(4) prescription drug
services;
(5) physician services;
and
(6) transportation
services.
(b)
Recovery through lien. The Oklahoma Health Care Authority (OHCA)
may file and enforce a lien, after notice and opportunity for a hearing,
against the real property of a member who is an inpatient in a nursing
facility, ICF/MR or other medical institution in certain instances.
(1)
Exceptions to filing a lien.
(A) A lien may not be filed on the home
property if the member's family includes:
(i)
a surviving spouse residing in the home;
(ii) a child or children age 20 or less
lawfully residing in the home ;
(iii) a disabled child or children of any age
lawfully residing in the home; or
(iv) a brother or sister of the member who
has an equity interest in the home and has been residing in the home for at
least one year immediately prior to the member's admission to the nursing
facility and who has continued to live there on a continuous basis since that
time.
(B) If an
individual covered under an Oklahoma Long-term Care Partnership Program
approved policy received benefits for which assets or resources were
disregarded as provided for in OAC
317:35-5-41.9,
the Oklahoma Health Care Authority will not seek recovery from the individual
for the amount of assets or resources disregarded.
(2)
Reasonable expectation to return
home. A lien may be filed only after it has been determined, after
notice and opportunity for a hearing, that the member cannot reasonably be
expected to be discharged and return to the home. To return home means the
member leaves the nursing facility and resides in the home on which the lien
has been placed for a period of at least 90 days without being re-admitted as
an inpatient to a facility providing nursing care. Hospitalizations of short
duration that do not include convalescent care are not counted in the 90 day
period. Upon certification for Title XIX for nursing care, OKDHS provides
written notice to the member that a one-year period of inpatient care
constitutes a determination by the OKDHS that there is no reasonable
expectation that the member will be discharged and return home for a period of
at least 90 days. The member or the member's representative is asked to declare
intent to return home by signing the OKDHS Form 08MA024E, Acknowledgment of
Intent to Return Home/Medicaid Recovery Program. Intent is defined here as a
clear statement of plans in addition to other evidence and/or corroborative
statements of others. Should the intent be to return home, the member must be
informed that a one-year period of care at a nursing facility or facilities
constitutes a determination that the member cannot reasonably be expected to be
discharged and return home. When this determination has been made, the member
receives a notice and opportunity for hearing. This notification occurs prior
to filing of a lien. At the end of the 12-month period, a lien may be filed
against the member's real property unless medical evidence is provided to
support the feasibility of his/her returning to the home within a reasonable
period of time (90 days). This 90-day period is allowed only if sufficient
medical evidence is presented with an actual date for the return to the
home.
(3)
Undue hardship
waiver. When enforcing a lien or a recovery from an estate [see (c) of
this Section] would create an undue hardship, a waiver may be granted. Undue
hardship exists when enforcing the lien would deprive the individual of medical
care such that the individual's health or life would be endangered. Undue
hardship exists when application of the rule would deprive the individual or
family members who are financially dependent on him/her for food, clothing,
shelter, or other necessities of life. Undue hardship does not exist, however,
when the individual or his/her family is merely inconvenienced or when their
lifestyle is restricted because of the lien or estate recovery being enforced.
Decisions on undue hardship waivers are made at OKDHS State Office, Family
Support Services Division, Health Related and Medical Services Section. Upon
applying for an undue hardship waiver, an individual will receive written
notice, in a timely process, whether an undue hardship waiver will be granted.
If an undue hardship waiver is not granted, the individual will receive written
notice of the process under which an adverse determination can be appealed. The
OHCA Legal Division staff will receive notification on all undue hardship
waiver decisions.
(4)
Filing
the lien. After it has been determined that the member cannot reasonably
be expected to be discharged from the nursing facility and return home and the
member has been given notice of an intent to file a lien against the real
property and an opportunity for a hearing on the matter, a lien is filed by the
Oklahoma Health Care Authority, Third Party Liability Unit, for record against
the legal description of the real property in the office of the county clerk of
the county in which the property is located. A copy of the lien is sent by OHCA
to the member or his/her representative. The lien must contain the following
information:
(A) the name and mailing address
of the member, spouse, legal guardian, authorized representative, or individual
acting on behalf of the member;
(B)
the amount of Title XIX paid at the time of the filing of the lien and a
statement that the lien amount will continue to increase by any amounts paid
thereafter for Title XIX on the member's behalf;
(C) the date the member began receiving
compensated inpatient care at a nursing facility or nursing facilities,
intermediate care facility for the mentally retarded or other medical
institution;
(D) the legal
description of the real property against which the lien will be recorded;
and
(E) the address of the Oklahoma
Health Care Authority.
(5)
Enforcing the lien. The lien
filed by OHCA for Title XIX correctly received may be enforced before or after
the death of the member. But it may be enforced only:
(A) after the death of the surviving spouse
of the member or until such time as the surviving spouse abandons the homestead
to reside elsewhere;
(B) when there
is no child of the member, natural or adopted, who is 20 years of age or less
residing in the home;
(C) when
there is no adult child of the member, natural or adopted, who is blind or
disabled, as defined in OAC
317:35-1-2, residing
in the home;
(D) when no brother or
sister of the member is lawfully residing in the home, who has resided there
for at least one year immediately before the date of the member's admission to
the nursing facility, and has resided there on a continuous basis since that
time; and
(E) when no son or
daughter of the member is lawfully residing in the home who has resided there
for at least two years immediately before the date of the member's admission to
the nursing facility, and establishes to the satisfaction of the OKDHS that he
or she provided care to the member which permitted the member to reside at home
rather than in an institution and has resided there on continuous basis since
that time.
(6)
Dissolving the lien. The lien remains on the property even after
transfer of title by conveyance, sale, succession, inheritance or will unless
one of the following events occur:
(A) The
lien is satisfied. The member or member's representative may discharge the lien
at any time by paying the amount of lien to the OHCA. Should the payment of the
debt secured by the lien be made to the county office, the payment is forwarded
to OHCA/Third Party Liability, so that the lien can be released within 50 days.
After that time, the member or the member's representative may request in
writing that it be done. This request must describe the lien and the property
with reasonable certainty. By statute, a fine may be levied against the lien
holder if it is not released in a timely manner.
(B) The member leaves the nursing facility
and resides in a property to which the lien is attached, for a period of more
than 90 days without being re-admitted to a facility providing nursing care,
even though there may have been no reasonable expectation that this would
occur. If the member is re-admitted to a nursing facility during this period,
and does return to his/her home after being released, another 90 days must be
completed before the lien can be dissolved.
(7)
Capital resources. Rules on
the determination of capital resources for individuals related to the aged,
blind, or disabled (See OAC
317:35-5-41
through
317:35-5-41.7 )
apply to the proceeds received for the property in excess of the amount of the
lien after the lien is satisfied.
(c)
Recovery from estates.
(1) If the member was age 55 or older when
the nursing care was received, adjustment or recovery may be made only after
the death of the individual's spouse, if any, and at a time when there are no
surviving children age 20 or less and no surviving disabled children of any age
living in the home. Oklahoma Statutes contain stringent time frames concerning
when and how claims against an estate in probate are filed and paid. Therefore,
timely updating of computer input forms indicating the death of the member is
crucial to insure the OHCA's ability to file timely against the
estate.
(2) The estate consists of
all real and personal property and other assets included in member's estate as
defined by Title 58 of the Oklahoma Statutes. Although county staff ordinarily
will not be responsible for inventorying or assessing the estate, assets and
property that are not considered in determining eligibility should be
documented in the case record.
(3)
After updating of computer input form indicating member's death, a computer
generated report is sent to OHCA/Third Party Liability (TPL). This report will
serve as notification to OHCA/TPL to initiate estate recovery.
(4) Undue hardship waivers may be granted for
estate recovery as provided in (b)(3) of the Section.
(5) If an individual covered under an
Oklahoma Long-Term Care Partnership Program approved policy received benefits
for which assets or resources were disregarded as provided for in OAC
317:35-5-41.9,
the Oklahoma Health Care Authority will not seek recovery from the individual's
estate for the amount of assets or resources disregarded.
Added at 12 Ok Reg
753, eff 1-6-95 through 7-14-95 (emergency); Added at 12 Ok Reg 3133, eff
7-27-95; Amended at 13 Ok Reg 1521, eff 3-27-96 (emergency); Amended at 14 Ok
Reg 56, eff 4-30-96 (emergency); Amended at 14 Ok Reg 1802, eff 5-27-97;
Amended at 15 Ok Reg 564, eff 9-18-97 (emergency); Amended at 15 Ok Reg 1554,
eff 5-11-98; Amended at 24 Ok Reg 2135, eff 6-25-07; Amended at 25 Ok Reg 130,
eff 8-1-07 (emergency); Amended at 25 Ok Reg 674, eff 12-18-07 (emergency);
Amended at 25 Ok Reg 1227, eff 5-25-08; Amended at 27 Ok Reg 1680, eff 5-14-10
(emergency); Amended at 28 Ok Reg 1537, eff
6-25-11