1. Except as otherwise provided in this section and to the extent it is not prohibited by federal law and when circumstances allow, the Department shall recover benefits correctly paid for Medicaid from:

(a) The undivided estate of the person who received those benefits; and

(b) Any recipient of money or property from the undivided estate of the person who received those benefits.

2. The Department shall not recover benefits pursuant to subsection 1, except from a person who is neither a surviving spouse nor a child, until after the death of the surviving spouse, if any, and only at a time when the person who received the benefits has no surviving child who is under 21 years of age, blind or disabled.

3. Except as otherwise provided by federal law, if a transfer of real or personal property by a recipient of Medicaid is made for less than fair market value, the Department may pursue any remedy available pursuant to chapter 112 of NRS with respect to the transfer.

4. The amount of Medicaid paid to or on behalf of a person is a claim against the estate in any probate proceeding only at a time when there is no surviving spouse or surviving child who is under 21 years of age, blind or disabled.

5. The Director may elect not to file a claim against the estate of a recipient of Medicaid or the spouse of the recipient if the Director determines that the filing of the claim will cause an undue hardship for the spouse or other survivors of the recipient. The Director shall adopt regulations defining the circumstances that constitute an undue hardship.

6. Any recovery of money obtained pursuant to this section must be applied first to the cost of recovering the money. Any remaining money must be divided among the Federal Government, the Department and the county in the proportion that the amount of assistance each contributed to the recipient bears to the total amount of the assistance contributed.

7. Any recovery by the Department from the undivided estate of a recipient pursuant to this section must be paid in cash to the extent of:

(a) The amount of Medicaid paid to or on behalf of the recipient after October 1, 1993; or

(b) The value of the remaining assets in the undivided estate,

whichever is less.

(Added to NRS by 1993, 917; A 1995, 2566; 1997, 1240, 2237, 2626; 1999, 581, 877, 2242; 2001, 158; 2003, 874) — (Substituted in revision for NRS 422.2935)