Oregon Senate Bill 1029 modifies estate recovery rules for medical assistance

Oregon's Senate Bill 1029, introduced on March 4, 2025, aims to reform the state's approach to recovering medical assistance from individuals' estates. This legislation, sponsored by the Committee on Human Services, seeks to address the financial burdens faced by families caring for elderly or disabled relatives at home.

The bill introduces a significant exception to existing laws that allow the state to reclaim medical assistance payments from a deceased person's estate. Specifically, it prohibits the recovery of such funds if a child has been living with and providing care to the individual for at least two consecutive years prior to their death. This change is designed to alleviate the financial strain on families who take on caregiving responsibilities, ensuring that they are not penalized after the loss of their loved ones.

Additionally, Senate Bill 1029 removes restrictions on the transfer of real or personal property by recipients of medical assistance, allowing them greater flexibility in managing their assets without fear of repercussions. This provision is particularly relevant for families looking to pass on property to heirs without incurring penalties related to past assistance received.

The bill has sparked discussions among lawmakers and advocacy groups, with supporters arguing that it promotes family caregiving and protects vulnerable populations. Critics, however, express concerns about the potential financial implications for the state, fearing that loosening recovery rules could lead to increased costs for taxpayers.

As the bill progresses through the legislative process, its implications could resonate deeply within Oregon communities, particularly among families navigating the complexities of elder care. If passed, Senate Bill 1029 would take effect 91 days after the legislative session concludes, marking a significant shift in how the state manages medical assistance recovery and its impact on family caregivers.