SB93 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2018

Title

Medicaid, liens and claims against recipient and recipient's estate authorized

Summary

SB 93 would allow Alabama's Medicaid Agency to place liens on a recipient's real property or file claims against the recipient's estate to recover medical assistance payments.

What This Bill Does

The bill authorizes the Medicaid Agency to file real property liens or estate claims for the amount of medical assistance paid on behalf of a recipient. Liens would equal the total payments made, accrue over time, and be subordinate to earlier mortgages, with foreclosure possible in circuit court after proper notice. It also adds estate notice requirements under the Alabama Small Estates Act, requiring timely notice to Medicaid and a 30-day response window (claim, waiver, or no amount due), and allows an electronic notice option. Additionally, the bill allows Medicaid to open probate estates via a third-party administrator with bond and compensation rules, permits claims against estates by affidavit, requires consent for transferring property to Medicaid, and sets a 24-month disposal deadline for property held by Medicaid.

Who It Affects

• Medicaid recipients (and their heirs or estate representatives) could have liens placed on real property and claims filed against estates to recover medical payments.
• Property owners, mortgage lenders, and probate officials involved in estate administration would be subject to liens, notice requirements, transfer consent rules, and property disposal timelines.

Key Provisions

• Authorizes the Medicaid Agency to place liens on a recipient's real property and to file claims against the estate of a deceased recipient for the amount of medical assistance paid.
• Lien amounts equal total Medicaid payments and accrue over time; liens are subordinate to previously recorded mortgages; agency can foreclose by petition for sale in circuit court with notice to interested parties.
• Establishes estate notice requirements: personal representative must notify Medicaid with detailed information; Medicaid must respond within 30 days with a claim, waiver, or statement that no amount is due; electronic notice option may be used.
• Allows Medicaid to open probate estates via a third-party administrator (bond required; administrator compensation); prohibits Medicaid employees from serving as administrator; filing fees for the agency are treated as administration costs.
• Permits Medicaid to file claims against estates for medical payments with an affidavit detailing amounts and time; affidavit is prima facie evidence.
• Medicaid may hold title to real property; transfers to Medicaid require the Commissioner's signed consent; property must be disposed of within 24 months of acquisition.
• Effective date: law takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Medicaid