At what age does federal Medicaid rules begin asset recovery after the death of the individual?

Federal Medicaid rules stipulate that asset recovery begins after the death of an individual at the age of 55. This provision allows states to recover money spent on Medicaid services from the estate of the deceased individual, mitigating the financial burden on the state as it provides healthcare services to lower-income individuals. The asset recovery policy is primarily aimed at those who have received long-term care services, as these costs can be substantial.

At age 55, individuals are generally considered to have entered a stage of life where they may have accumulated assets, making it reasonable for the program to seek reimbursement for the support provided. This aspect of Medicaid policy encourages individuals to be aware of their estate planning to ensure that their beneficiaries are taken care of after their passing while also allowing the state to reclaim costs incurred during the individual's lifetime.