Section 1 Short title
This Act may be cited as the “Stop Unfair Medicaid Recoveries Act”.
Stop Unfair Medicaid Recoveries Act
A BILL
To amend title XIX of the Social Security Act to repeal the requirement that States establish a Medicaid Estate Recovery Program and to limit the circumstances in which a State may place a lien on a Medicaid beneficiary’s property.
Sec. 2 Liens, adjustments, and recoveries for medical assistance
in paragraph (1)—
in the matter preceding subparagraph (A), by striking “plan, except—” and inserting “plan, except, subject to paragraph (4)—”; and
in subparagraph (B), by striking “in the case of” and inserting “with respect to liens imposed before the date of the enactment of the Stop Unfair Medicaid Recoveries Act, in the case of”; and
by adding at the end the following:
“(4) Notwithstanding any preceding provision of this subsection, not later than 90 days after the date of the enactment of this paragraph, a State shall—
“(A) withdraw any lien imposed under paragraph (1)(B) that is in effect as of such date; and
“(B) notify each individual (or legal representative of such individual (or of such individual’s estate)) subject to such a lien so withdrawn of the withdrawal of such lien.”
Adjustments and recoveries— Section 1917(b) of the Social Security Act (42 U.S.C. 1396p(b)) is amended—
in paragraph (1), by striking “except that” and inserting “except that, subject to paragraph (6),”; and
by adding at the end the following:
“(6) Notwithstanding any preceding provision of this subsection, no adjustment or recovery of any medical assistance correctly paid on behalf of an individual under the State plan may be initiated, maintained, or collected on or after the date of the enactment of this paragraph. Not later than 90 days after such date, a State shall—
“(A) withdraw any lien in effect as of such date with respect to such medical assistance correctly paid; and
“(B) notify each individual (or legal representative of such individual (or of such individual’s estate)) subject to such a lien so withdrawn of the withdrawal of such lien and the prohibition on adjustment or recovery under this paragraph.”