Repealing the requirement that States establish a Medicaid estate recovery program and limit the circumstances in which a State may place a lien on a Medicaid beneficiary’s property

(a) Liens Section 1917(a) of the Social Security Act (42 U.S.C. 1396p(a)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking plan, except— and inserting plan, except, subject to paragraph (4)—; and (B) in subparagraph (B), by striking in the case of and inserting with respect to liens imposed before the date of the enactment of the Stop Unfair Medicaid Recoveries Act, in the case of; and (2) by adding at the end the following: (4) Notwithstanding any preceding provision of this subsection, not later than 90 days after the date of the enactment of this paragraph, a State shall— (A) withdraw any lien imposed under paragraph (1)(B) that is in effect as of such date; and (B) notify each individual (or legal representative of such individual (or of such individual’s estate)) subject to such a lien so withdrawn of the withdrawal of such lien.. (b) Adjustments and recoveries Section 1917(b) of the Social Security Act (42 U.S.C. 1396p(b)) is amended— (1) in paragraph (1), by striking except that and inserting except that, subject to paragraph (6),; and (2) by adding at the end the following: (6) Notwithstanding any preceding provision of this subsection, no adjustment or recovery of any medical assistance correctly paid on behalf of an individual under the State plan may be initiated, maintained, or collected on or after the date of the enactment of this paragraph. Not later than 90 days after such date, a State shall— (A) withdraw any lien in effect as of such date with respect to such medical assistance correctly paid; and (B) notify each individual (or legal representative of such individual (or of such individual’s estate)) subject to such a lien so withdrawn of the withdrawal of such lien and the prohibition on adjustment or recovery under this paragraph..