SB76 Alabama 2019 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2019

Title

Estates, probate court proceedings, notice requirements to Alabama Medicaid Agency, provided, probate proceedings, further provided

Summary

SB 76 requires notice to Alabama Medicaid at the start of probate in Medicaid estate recovery cases, delaying certain payments until Medicaid responds, and creating a uniform process for Medicaid to begin probate proceedings.

What This Bill Does

If a probate proceeding starts, the personal representative must send a notice to Medicaid with specific details about the deceased and the case. The notice is mailed by certified mail, and the court must record the delivery. Medicaid must respond within 30 days with a claim, a waiver, or a statement that no amount is due; if no response, the claim is waived. Debts in the sixth priority and distributions cannot be paid or made until the notice is filed and 30 days have passed since Medicaid received notice, and the act provides a uniform way for Medicaid to start probate proceedings across the state.

Who It Affects

• Personal representatives or filers under the Alabama Small Estates Act must send the detailed notice to Medicaid and mail it via certified mail, affecting how probate cases involving Medicaid recovery start.
• Alabama Medicaid Agency and the decedent's estate: Medicaid must respond within 30 days with a claim, waiver, or statement that no amount is due; if no response, the claim is waived, and sixth-priority debts and distributions are paused until notice is verified; the agency may petition to open estates and file claims under federal law, with bonds and fees handled accordingly.

Key Provisions

• Notice to Medicaid required at commencement of probate with specific information about the deceased and probate case.
• Notice must be mailed by certified mail and filed with an affidavit of certified mailing; probate court must record the return receipt.
• Medicaid must respond within 30 days by filing a claim, a waiver, or a statement that no amount is due; if no response, the claim is waived.
• Debts in the sixth order of priority and distributions cannot be paid or made until proof of notice is filed and 30 days have passed since Medicaid received notice.
• Electronic notice option allowed; if used, a serialized certificate is issued and filed in court; either electronic or mail-based method may be used, not both.
• Medicaid Agency may petition to open probate estates of recipients, appoint third-party administrators, require bonds, and the agency's petition fees are paid back to Medicaid.
• Agency may file a claim for medical assistance payments under federal law, with specific exclusions for Medicare cost-sharing and Medicare Savings Programs; affidavit required.
• Liens program remains under federal law and is not expanded or reduced.
• Effective date: act becomes law on the first day of the third month after passage.

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

Subjects

Wills and Estates