WAG 23-09-01-a

Liens are filed on clients' real property to get back:

  • Cash benefits given to an AABD client.
  • Medical payments made for an AABD Medical client who has been in a medical institution 120 or more days.

NOTE:

1. Homestead property is still an exempt asset but a lien can be filed on it after the client has been in a medical institution for 120 days.

2. The 120-day period starts with the first day the client goes into a medical institution. When a client is admitted to a long term care facility from a hospital, the 120-day count begins with the date of admission to the hospital. A move from the hospital to a long term care facility, or from a long term care facility to a hospital, does not interrupt the 120-day count. If the client is released from the medical institution to the community, the 120-day count starts over.

3. HFS will not file a lien on property owned by an AABD Medical client hospitalized for any length of time who is not placed in a long term care facility from the hospital.

The amount of the lien includes any payments made to file, renew, or release the lien.

There are 2 situations where a lien is not filed against real property owned by an AABD Medical client in a medical institution.

Situation 1: Occupied by a Relative

A lien is not filed when one of the following lives in the property:

  • the client's spouse; or
  • the client's minor, disabled, or blind child; or
  • the client's brother or sister, if:
    • they have lived in the house for at least one year before the client went into the medical institution, and
    • they have an equity interest in the house.

Situation 2: Temporary Stay

A lien is not filed when the client goes into a medical institution for what is expected to be a short stay. The client is expected to return home and a deduction is allowed for the client to maintain a home in the community.