My 82 yr old mother has been on Medicaid for many years & has a reverse mortgage. Will Medicaid take whatever profit is left after RM gets paid?

Hanging..... so mom’s on Medicaid since last millennium? If so, she’s been on it BEFORE the 2005 DRA enacted Estate Recovery law. I think cause of this she is outside of any recovery action. Her Medicaid started before MERP required. Probably going to need a tersely worded letter from MERP savvy atty to get it done.

But the bigger issue will be what happens with the RM...... if she’s moved out of her home & into IL, you need to carefully read the RM contract as most have the RM become due within a set period of time after they move from home. RM requires one to be a homeowner actually living in the home. So find out what her terms are. If she’s out of compliance, the RM can be called in and like Yesterday. 

I’d be surprised if there’s any $$ left after her RM is paid off. Between hefty interest, fees, whatever costs RM can tack on, most have no $$ left. Maybe just maybe if it’s a old old RM and huge property value surge..... But realize even if there’s $$, it will fall into increased income / assets for her so she’s now going to be over Medicaid’s limits. She’ll probably be ineligible to continue to stay of Medicaid so it’s private pay for care. Basically a spend down for her to become impoverished to apply for Medicaid again as she’s likely to be over Medicaid’s assets limits. 

It’s going to be a hot mess of Paperwork to shift through in all this. Stay organized 

The RM is secured lending, & secured debt MUST be paid off first.
Medicaid is unsecured and can have a lien placed against assets IF your state allows for this or becomes an after death claim on her estate. 

Thx JoAnn29.
I believe her house will sell for more then what’s owed but wasn’t sure if Medicaid would take any profit (after RM).
The RM guy said in order for their bank to approve the RM, they cannot be “second” to anyone claiming money on the house..
They will get paid first..
Oh and for anyone considering getting a RM.
DON’T.

Not sure how it works when Medicaid is for health insurance and caregivers. When in a NH yes, they will put a lean on the house and I don't know who becomes first Medicaid or the RM. I will assume Medicaid since its government. This really is a question for Medicaid. Also, I am assuming that is Mom owes more than house is worth the RM will foreclose on it at her death and you will not have to sell it they will.