An act relating to Medicaid estate recovery

This bill expands protections for Medicaid beneficiaries' estates by limiting when the state can recover medical costs from their assets after death. It directly affects families of deceased Medicaid recipients in Vermont, particularly those with low income or caregiving contributions to the decedent. The law prohibits estate recovery against homesteads that pass to heirs with income below 300% of the federal poverty level or to siblings who financially supported the decedent to avoid nursing home placement. It also protects sole income-producing assets of heirs and homesteads belonging to refugees. The changes apply immediately upon passage and require state funding to cover certain homestead recoveries that would otherwise be owed to the federal government.