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HB 5922

Human services: medical services; claims for recovery against an ABLE account; prohibit. Amends sec. 112g of 1939 PA 280 (MCL 400.112g). TIE BAR WITH: HB 5923'26

2025-2026 Regular Session Introduced by Kelly Breen and 12 co-sponsors

Establishes Michigan’s MERP to recover specified medical costs from beneficiaries’ estates, with hardship exemptions, protections for homes and dependents, and required federal app

bill electronically reproduced 04/29/2026
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WeVote Research Nonpartisan
Bill Summary · HB 5922

Summary of Michigan HB 5922 (2025-2026)

Note: This bill ties its effective date to passage of HB 5923 and relates to the Michigan Medicaid estate recovery program, with specific provisions governing estate recovery and exemptions.

Main purpose and intent

  • To establish and regulate a Michigan Medicaid Estate Recovery Program (MERP) under the framework of Medicare/Medicaid state plan requirements (Title XIX, §1917).
  • To authorize the Department of Health and Community Health (likely "department of community health" per the text) to develop, implement, and operate estate recovery activities, seek federal waivers/approval, and set hardship exemptions to protect certain survivors and family assets.
  • To ensure compliance with federal requirements while protecting vulnerable individuals and family wealth in specified hardship scenarios.

Key provisions and changes

Establishment and reporting

  • Creates/mandates an estate recovery program for medical assistance beneficiaries, aligned with federal §1917 requirements.
  • Requires the department to work with state and federal agencies to explore a voluntary estate preservation program.
  • Obligates the department to report every 180 days (beginning within 180 days after enactment) to Senate/House appropriations subcommittees and fiscal agencies on options for the estate preservation program.

Core activities of the MERP

  • (2)(a) Track assets and services of medical assistance recipients subject to estate recovery.
  • (2)(b) Take actions to collect amounts subject to estate recovery, limited to the cost of the medical services provided, with settlements considering state interests and heirs/spouse.
  • (2)(c) Implement other necessary activities to administer the program effectively.

Federal waivers and state plan changes

  • (3) Seek changes to Michigan’s Medicaid state plan and obtain CMS waivers/approvals to implement MERP.
  • CMS approvals needed for:
    • (a) Which services are subject to estate recovery.
    • (b) Which recipients are subject to estate recovery.
    • (c) Circumstances regarding recovery from estates of spouses of recipients.
    • (d) Accepted actions to obtain funds, including notice/hearing procedures for contesting MERP actions.
    • (e) Hardship exemptions, with a defined hardship framework.
    • (f) Review and grant exemptions for cases not meeting the hardship definition.
    • (g) Protections to ensure heirs are not unreasonably harmed (per 42 U.S.C. §1396p(b)(3)).

Hardship exemptions

  • Defines hardship to exempt certain estates, using examples such as:
    • (i) Homestead exemption up to 50% of the county’s average home price at the time of death.
    • (ii) Primary income-producing assets of survivors (e.g., family farm or business).
    • (iii) Rebuttable presumption that hardship exists if assets were diverted via estate planning to avoid recovery.
  • Department to create an operating definition of hardship and provide materials at Medicaid eligibility enrollment for long-term care.

Exemptions and welfare protections

  • (4) MERP will not be pursued if costs of recovery exceed the amount recoverable or if recovery is not in the state’s best economic interest.
  • (5) No MERP implementation without federal approval.
  • (6) No home recovery if certain individuals reside in the home (spouse, eligible dependent, caretaker relative who lived with the recipient and provided care, or a sibling with equity in the home who resided with the recipient before institutionalization).

Notifications and communications

  • (7) Provide written information to applicants for long-term care Medicaid about MERP and potential estate recovery.

Financial protections and liens

  • (8) No interest charged on MERP balances.
  • (9) No lien placed on qualifying property under TEFRA (TEFRA restrictions apply to federal tax/deficit lien issues).

ABLE accounts

  • (10) Except as required by federal law, no recovery from a recipient’s ABLE savings account.

Enactment condition

  • The act’s provisions become effective only if HB 5923 or related legislation is enacted into law.

Who/what would be affected

  • Medicaid recipients who are long-term or eligible for medical assistance subject to estate recovery, including consideration of spousal and heir interests.
  • Recipients’ estates, including real property (with specific protections for primary residences and family assets in hardship scenarios).
  • Heirs, spouses, and certain caretaker relatives who reside in the home or are otherwise affected by recovery actions.
  • The Michigan Department of Health and Community Health (or Department of Community Health as referenced) responsible for administering MERP, reporting, and seeking federal approvals.
  • State budget and appropriations processes due to periodic reporting requirements.

Procedural and timeline aspects

  • 180-day cadence: Beginning within 180 days after enactment, the department must report every 180 days to appropriations subcommittees and fiscal agencies on estate preservation options.
  • Federal approvals: MERP implementation requires CMS approval and alignment with federal law; must not proceed without such approval.
  • Interaction with federal law: Provisions reference sections of Title XIX (1917) and 1396p(b)(3); interpretations/allowances depend on CMS determinations.

Notable nuances

  • Hardship definitions include both quantitative (homestead value) and qualitative (caretaker arrangements, asset protection for survivors) criteria.
  • Protective provisions ensure no interest accrues, and no TEFRA liens are placed on qualifying homes where protected individuals reside.
  • ABLE accounts are largely shielded from recovery unless federal law dictates otherwise.

This bill appears aimed at formalizing Michigan’s MERP with structured protections for families and compatibility with federal requirements, while enabling ongoing reform via estate preservation options.

Compiled from official sources — confirm details with the bill’s official record.

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