When Nursing Homes Come After Families: Nassau County’s Growing Crisis of Aggressive Medicaid Recovery Actions
Families across Nassau County are facing an unexpected financial nightmare long after their loved ones have passed away. The state is demanding beneficiaries pay back the full cost of nursing home care—totals reaching $167,000 or more—in six months, threatening to seize family homes that have been central to their lives for generations. This aggressive pursuit of debt collection through Medicaid Estate Recovery Programs represents one of the most challenging aspects of eldercare financial planning in 2024.
Understanding Nassau County’s Medicaid Estate Recovery Program
Medicaid estate recovery is a process by which state Medicaid programs seek to recoup the costs of long-term care services provided to Medicaid recipients after their death. When an individual receives Medicaid benefits for certain types of long-term care, such as nursing home care or home health services, the state may have the right to recover the expenses from their estate. New York is one of the states that tries to recover the maximum amount of Medicaid benefits allowed by federal law, meaning after your death, the state will try to recoup all the Medicaid benefits you received after turning 55 or becoming permanently institutionalized, not just the expenses for long-term care in a nursing home.
Like many Americans, families are unaware of the Medicaid Estate Recovery Program, which allows states to seize property from the heirs of Medicaid recipients, often robbing people of homes that have been in their family for generations. The consequences can be devastating for Nassau County families who discover these claims only after losing a loved one.
Aggressive Nursing Home Debt Collection Tactics in 2024
Beyond state Medicaid recovery, Nassau County families are also facing aggressive debt collection from nursing homes themselves. Some nursing home admission agreements include clauses that appear to require third parties to pay for residents’ costs, and regardless of whether these clauses comply with federal law, these agreements can lead family members and friends to believe they are legally liable for the resident’s bills.
Nearly two-fifths of legal professionals report seeing lawsuits against third parties to recover nursing home debt resolved with negotiated settlements, while more than a quarter report cases being voluntarily dismissed. Law firms across New York are reportedly filing nursing home debt collection actions, with 15 firms specifically identified in New York state.
Recent enforcement actions in Nassau County highlight the scope of these issues. In 2024, New York Attorney General Letitia James secured a major settlement with Fulton Commons Care Center in East Meadow, Nassau County, requiring owners to pay up to $8.6 million after an investigation exposed longstanding resident neglect, abuse, mistreatment, and financial fraud.
Federal Protections and Legal Defenses
Federal law prohibits nursing homes that participate in Medicaid or Medicare from requesting or requiring that a non-resident personally guarantee the cost of nursing home care as a condition of admission, expedited admission, or continued stay in the facility. However, enforcement of these protections requires knowledgeable legal advocacy.
Families facing these collection actions have several potential defenses. Statute of limitations defenses can be powerful, as the six-year limitation period is calculated from when the breach occurred, not from the resident’s death. Facilities that sit on their rights for over six years while having full knowledge of non-payment may find their claims time-barred.
Estate Recovery Exemptions and Protections
New York law provides certain protections from estate recovery. The state won’t place a medical assistance lien on your home while you or your spouse are alive, and also won’t place such a lien if your child is still a minor, blind, or disabled. Medicaid Estate Recovery cannot apply to the home if the decedent has a surviving spouse or if the decedent has children whose primary residence is the home and the children are underaged.
The undue hardship waiver allows the state to waive estate recovery if it would cause undue hardship for individuals who would face significant financial or other hardships, including situations where estate recovery would negatively impact dependent family members who relied on the deceased Medicaid recipient for support.
Why Professional Legal Help is Essential
Navigating these complex debt collection and estate recovery issues requires experienced legal representation. A qualified debt lawyer Nassau County can evaluate your specific situation, identify applicable defenses, and protect your family’s assets from aggressive collection tactics.
The Law Offices of Ronald D. Weiss, P.C., located in Nassau County, brings over 30 years of experience defending families against improper debt collection practices. Since 1993, they have been supplying expert bankruptcy, foreclosure defense, and debt negotiation services, offering practical, compassionate solutions customized to each client’s financial situation. The firm looks at each client’s case individually based on their specific situation and needs, with a goal to offer highly effective legal help that is both compassionate and affordable.
Most of their litigation is defensive, designed to prevent creditors from getting quick judgments. By making the case long and expensive for creditors, they’re more likely to negotiate or slow down the process, giving clients time to prepare for bankruptcy if needed.
Taking Action to Protect Your Family
If your family is facing nursing home debt collection or Medicaid estate recovery actions in Nassau County, time is critical. The state Medicaid agency will typically send a notice to the executor or administrator of the deceased Medicaid recipient’s estate, informing them of the intent to pursue estate recovery, outlining the amount owed and the process for satisfying the debt.
Don’t face these challenges alone. Having a seasoned attorney who takes the time to understand your situation is key, diving deep into the specifics of your situation and understanding that no two financial challenges are identical. Getting initial information and advice is free, with an approach personalized to your specific situation and goals.
Nassau County families deserve protection from predatory debt collection practices and improper estate recovery actions. With knowledgeable legal representation, you can challenge improper claims, negotiate favorable settlements, and preserve your family’s financial security during an already difficult time.