Long Term Care Certification Practice Test

Which legislation empowers the government to recover Medicaid costs from a person's estate?

1. Medicare Modernization Act

2. OBRA (Omnibus Budget Reconciliation Act)

3. Health Insurance Portability Act

4. Affordable Care Act

The correct answer is: OBRA (Omnibus Budget Reconciliation Act)

The Omnibus Budget Reconciliation Act (OBRA) includes provisions that authorize the recovery of Medicaid costs from an individual's estate after their death. This legislation was enacted to help states recover expenses incurred for Medicaid services provided to beneficiaries, ensuring that Medicaid remains a sustainable program. The estate recovery process allows states to claim reimbursement from the deceased person's assets, which can include real estate, bank accounts, and other possessions. This is particularly relevant in the context of long-term care, where individuals may receive significant benefits from Medicaid, especially during the later stages of life. Understanding the function of OBRA in this context is crucial. It highlights the balance between providing necessary healthcare services to qualifying individuals and ensuring that states can recoup funds to reinvest in their healthcare programs. While the other legislative acts mentioned may address other healthcare topics, they do not specifically relate to the estate recovery of Medicaid costs. The Medicare Modernization Act, for example, focuses on Medicare benefits and prescription drugs. Similarly, the Health Insurance Portability Act largely pertains to privacy and portability of health insurance coverage, while the Affordable Care Act primarily aims to increase access to health insurance and improve healthcare quality, but does not involve estate recovery provisions for Medicaid.