Indiana Medicaid Estate Recovery

How hardship waivers work

Indiana law authorizes a waiver in cases of undue hardship and requires the office to adopt criteria consistent with federal guidance (Indiana Code § 12-15-9-6). The detailed recovery regulation says the office may waive all or part of a claim when enforcement would cause substantial and undue hardship for surviving beneficiaries (405 IAC 2-8-2).

The regulation gives examples: making a beneficiary eligible for or remain dependent on public assistance, complete loss of a qualifying income-producing asset, or other compelling circumstances determined case by case. It also says loss of a preexisting standard of living alone is not undue hardship (Indiana undue-hardship regulation).

Deadlines and practical steps

The affected beneficiary generally must be immediate family, though exceptional circumstances can permit consideration of someone else for good cause. The application must be filed within 90 calendar days after the executor or personal representative receives notice of the state's claim; the office must decide a proper application within 45 calendar days, and a denial may be appealed within 30 days of receipt (405 IAC 2-8-2).

Do not wait until a property is being sold. Keep the FSSA notice, estate papers, title documents, proof of income and public-assistance status, and documentation of any alleged hardship. An Indiana probate or elder-law lawyer can assess recovery, priorities, an exception, and the specific waiver record.

Estate recovery is generally administered after death, while eligibility is decided during life. Families should not make an eligibility transfer based on a hoped-for recovery waiver, because the hardship regulation expressly excludes transfer-penalty and trust-availability hardship claims from its scope (405 IAC 2-8-2).