Lawmakers Hear How Medicaid estate recovery, life estates and trusts affect long‑term care planning for H120

Legislative counsel Eric briefed the House Committee on Human Services on how Vermont's Medicaid estate recovery rules and common estate‑planning tools affect proposals in H120 for a long‑term care trust fund.

Eric told the committee that federal Medicaid law requires each state to operate a Medicaid Estate Recovery Plan (MERP) and that Vermont's Department of Vermont Health Access (DVHA) and the Attorney General's office use those rules to file claims against probate estates for long‑term care costs after a recipient's death.

The explanation focused on three policy levers that commonly determine whether assets are recoverable: whether property is part of the probate estate; the legal form used to transfer ownership (enhanced life estate deeds versus trusts); and federal/state look‑back rules that can make recent transfers recoverable.

Nut graf: The committee is considering H120, which aims to create a long‑term care fund; Eric said the bill's enabling language will need…