Property Liens

A property lien (also called TEFRA liens) is placed on real property at the time of application to allow a person to become Medicaid eligible despite having ownership interest in real property. These property liens are used by the Medicaid Agency for institutionalized individuals. Without the property lien, the applicant or responsible party would have to pay the applicant's medical expenses out of pocket OR would have to sell the property, complete a proper spend down, and reapply. 

• Alabama Medicaid State Plan - Liens and Recoveries
• Liens, Adjustments and Recoveries, and Transfer of Assets--SEC. 1917. [42 U.S.C. 1396p]
• Liens Program Procedures
• Liens Program Procedures (Spanish)
• Liens Program Statistical Data
• Lien Questions and Answers 
• Liens Questions and Answers (Spanish)
• Notice Regarding Lien and Claimant Rights
• Lien for Medical Payments under Alabama Medicaid Agency (sample only)
• Lien Information Sheet (sample only)
• Alabama Medicaid Adminstrative Code - Chapter 33
• Hardship Waiver Application

In order to request a Medicaid payoff for a property lien, you will need to email a copy of the sales contract and preliminary HUD to propertyliens@medicaid.alabama.gov. This documentation needs to be emailed at least 3 business days PRIOR to the scheduled closing. The Liens Unit cannot guarantee a Medicaid payoff can be provided if the request is not received timely.

• Household and Maintenance Expenses
• Checklist for Post-death Lien Negotiations                                                                                                                    This checklist should be submitted along with the payoff request if the sales price is less than the tax appraised value. This checklist may be used only if the Medicaid recipient has passed away.

NOTE: If you are inquiring about a subrogation claim or requests for medical records,click here.

Questions regarding Property Liens should be directed to the Property Liens Section. This office may be reached at (334) 242-5304 or  (334) 242-5305 or by emailing propertyliens@medicaid.alabama.gov. Please do not send sensitive information such as PHI through email. 

 

For information about Estate Recovery click here.