We didn't think Medicaid worked this way. We filled out their form and wrote a letter saying we went through all his paper work found nothing.
A couple weeks later we got something for him about annual enrollment. So we called to stop his mailings. They told us he might, and that's a big might have life insurance. So, we need to call the correct people later, we know this might life insurance has to go to Medicaid. Are we correct on that account? We were not lying on the form that he had nothing; we worry that Medicaid might think we were lying. Should we worry or just tend to the call and see if there is a life insurance or not.
I've had life insurance policies. The policy owner usually pays a monthly premium to keep the policy active. And the older you are, the more expensive the premiums are.
In your post you referred to "they" but not clear who "they" are?
Also, if he was paying for life insurance and had a named beneficiary, I don't think Medicaid has any claim on this payout since it first belongs to the insurance company and then goes to the beneficiary, if living. It was never your Dad's money.
If you don't have any paperwork showing he owned a life insurance policy -- and was still making payments on it -- then how would that insurance company know he has passed? They won't know. So, unless you find paperwork or a policy number in his belongings I think there's no active policy.
Enrollment stuff I suspect is something that is an advert? If it came from medicare or medicaid I would call the number on the form, inform them of his death.
I know if an employer paid for a life insurance policy, Medicaid can't get it. Not sure how insurance policies are handled when no cash value. Maybe Medicaid becomes the beneficiary with a second? Lets say the policy is for 100k and Medicaid put out 50k, the second beneficiary gets the balance of 50k.
Did Medicaid say that they know there was a policy? Or are they just fishing, there could be a policy? If there was a policy, should have been on the original application. Policies have beneficiaries and that is who get the money usually.
Update us on what u find out.
Is this a letter that actually came from the government? The reason I'm asking is because, they would already have a record of his death since he was receiving medicaid. Once a resident runs out of funds, they are switched over to medicaid. Watch out- There are scammers out there who comb the internet and obituaries for this purpose. Medicaid wouldn't come after life insurance policies. The funeral home will take care of processing the policy and whatever is left over is returned back to the family. The funeral home gets their share and the rest goes to the family. In most cases, the money will go to the beneficiary.