To amend title XIX of the Social Security Act to modify certain asset recovery rules.

This bill modifies Medicaid's asset recovery rules by giving states the option to exempt a home from recovery after a Medicaid recipient's death if the home is transferred to a family member who qualifies for Medicaid or has income below 138% of the federal poverty level. It directly affects Medicaid beneficiaries and their families by potentially preserving family homes instead of requiring states to reclaim them after care costs. The key change inserts a new exception into federal law, allowing states to choose whether to apply this rule when recovering assets from a deceased recipient's estate. This is a concrete policy adjustment to Medicaid's asset recovery process, not a new benefit or funding change.