Rep. Brennan Provides Sponsor Testimony on the Saving Homes for Ohioans' Legacy Act

COLUMBUS – State Reps. Sean Patrick Brennan (D-Parma) and Jason Stephens (R-Kitts Hill) on Tuesday provided sponsor testimony on House Bill 318 – a bill that would revise Medicaid estate recovery program law and bring much-needed balance and fairness to the Medicaid Estate Recovery process here in Ohio.  The sponsors were inspired to collaborate on this idea after Rep. Brennan’s advocacy for stronger notification requirements to those applying for Medicaid and are at risk of being subject to their assets or estates being recovered for the cost of services provided.

The federal government requires Medicaid Estate Recovery to recover long-term care expenses from Medicaid recipients, and although the program is meant to help Ohioans, it can become complicated and counterproductive. 

Ohio is amongst the most aggressive states in the country in terms of Medicaid Estate Recovery, yet less than 1% of the state’s Medicaid expenditures are recouped through this process. But the true cost of these efforts goes far beyond the dollars and cents returned to the state. 

“HB 318 proposes a more focused, humane, and fiscally responsible approach to the Medicaid Estate Recovery process,” Rep. Brennan said. “It strikes a balance – recovering what is required, in ways that do not bankrupt families or neighborhoods. It is truly an honor to join my friend and colleague, Representative Stephens on this compassionate yet conservative fix to a broken system, one that protects both the taxpayer and dignity of Ohio families.”

If enacted, the bill would:

• First, it limits Medicaid Estate Recovery only to mandatory Long-Term Services and Supports (LTSS) - such as nursing homes, Passport, assisted living, and directly related hospital or prescription costs. This aligns Ohio with 13 other states, including Texas, that have made this sensible choice, recovering only what federal law requires - nothing more.
• Second, the bill ensures recovery only occurs when the value of the estate exceeds the administrative cost to pursue it. If we spend more to collect a debt than we actually recover, we are literally paying to lose money. This is not stewardship; it’s waste.
• Third, the legislation exempts small claims under $20,000, protecting the most vulnerable - those for whom a family home or modest asset may be the only inheritance left to future generations.
• Fourth, we place a reasonable cap: Medicaid liens must not exceed 75% of the fair market value of the property. If liens are greater than the value of the home, there is the possibility of abandonment, blight, and community decline. The state gains nothing when a property becomes unmarketable, uninhabitable, and eventually gets demolished at taxpayer expense.

The bill is awaiting a second hearing in the Ohio House Medicaid committee.