Medicaid Estate Recovery: Aggressive Collections Target Families of Deceased with Disabilities in Iowa
Collection agents for the state of Iowa have recently made headlines for their aggressive pursuit of Medicaid estate recovery from the estates of individuals with disabilities who passed away after spending most of their lives in state institutions. The bills sent to families seek to recoup millions of dollars that Medicaid spent covering the residents’ care while they were at the Glenwood Resource Center, a state-run facility that was closed last summer.
The practice of Medicaid estate recovery is a federal requirement aimed at encouraging individuals to use their own resources before relying on the public program. However, states like Iowa have been noted for their particularly aggressive approach to these collections, as revealed in national reports.
One such case that garnered attention was that of Kristin Higgins, a 41-year-old woman with a severe developmental disability who lived at the Glenwood Resource Center for over 30 years. Following her passing, her family received a letter from the Iowa Department of Health and Human Services demanding repayment of $4,263,148.67, the amount spent by Medicaid on her care. Despite having minimal income and resources, Kristin’s family was shocked by the hefty bill.
Similarly, the family of Eric Tomlyn, who spent most of his life at the Glenwood Resource Center and passed away at the age of 29, received a Medicaid bill exceeding $4.2 million. The sudden demand for repayment left his mother, Susan Tomlyn, in disbelief.
While state officials attribute these letters to the Estate Recovery Program, it is revealed that private contractors hired to collect Medicaid debts are the ones behind these aggressive collection efforts. Despite most families not having the means to repay such exorbitant amounts, the stress and anxiety caused by these bills are undeniable.
Critics of Medicaid estate recovery programs argue that they disproportionately impact families with limited financial resources, while wealthier families can navigate legal loopholes to avoid repayment. The emotional toll on families who receive these bills, often for amounts they cannot afford, is a significant concern.
Efforts to curb aggressive Medicaid estate recovery practices have been made in some states, with Massachusetts significantly limiting its program last year. In Congress, Rep. Jan Schakowsky has introduced bills to eliminate the federal requirement for states to claw back Medicaid spending from estates, highlighting the program’s inefficiency and the distress it causes families.
As the debate over Medicaid estate recovery continues, families like the Higginses and Tomlyns are left grappling with the aftermath of their loved ones’ passing, compounded by the financial burden imposed by the state. The need for reform in this area is evident, as families should not be subjected to such undue stress and financial strain during already difficult times.
The story of Medicaid estate recovery in Iowa serves as a poignant reminder of the complexities and challenges faced by families of individuals with disabilities, highlighting the need for compassion and reform in our healthcare system.
