31 Aug MEDICAID ESTATE RECOVERY RULES
As of August 27, 2026, the rules on the Texas Medicaid Estate Recovery Program (MERP) have changed. MERP is the program where the government seeks reimbursement for benefits advanced such as long-term care (i.e., nursing home and drugs) after the death of the Medicaid recipient. Typically, the state makes a claim on non-countable resources such as a homestead and a car.
Some of the changes are as follows:
- The deadline for the state to give Notice of Intent to make a claim has increased from 30 to 60 calendar days after it is notified of a death.
- The government’s deadline to make the claim after the notice of death is received has increased from 70 to 120 days.
- The homestead hardship threshold increases from $100,000 to $150,000 under certain circumstances. If the home is worth more than $150,000, the first $150,000 can be protected under certain circumstances.
- Requests to deduct qualifying home-maintenance, tax, and directly paid expenses require proof and must be made within 60 days.
- Cost-effectiveness thresholds increase from $10,000 to $15,000 or less (if the assets are valued at less than that).
- Recoverable costs expressly include monthly managed-care capitation payments, not merely direct provider payments.
- Notice can be directed beyond a formally appointed representative to the last known address and certain family members or agents acting for the decedent.
- Notice can be sent to the decedent’s last known address.
The collection agency for the state will change to Stellarware Corporation on September 1, 2026.
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