Over twenty years ago, the estate recovery clause was added to Medicaid. If you are 55 or over and receive Medicaid coverage, the state you live in can seize your estate when you die to recover the costs they paid out for your health care.
By and large, a large percentage of the people receiving Medicaid have been the low income sector and poverty sector. Once they start receiving Medicaid, there is little if any incentive for them to try to work and get off the system. In fact, it seems that government created the system in such a way as make it more lucrative to be poor and stay poor than to try to work and make something of one’s self. In that light, why shouldn’t the state seek repayment of what they’ve paid out for someone’s laziness?
Under Obamacare, the estate recovery may hit millions more Americans. Before Obama could pardon the millions that would have lost their healthcare, there were millions that already had lost their policies. Many of these people cannot afford the new policies being offered to them through the Obamacare exchange programs.
Thanks to Obamacare, the qualifications for Medicaid have been changed to allow more lower income people of all ages to apply. Twenty-six states adopted the new Medicaid standards which means that more people will be applying and receiving Medicaid coverage than ever before.