The three years is not a statute of limitations. The three years represents the time period that the State can "look-back" to find assets that you may have transfered our of your name from the time you applied for Medicaid. The lien could potentially be filed years later, sometime after the recipient dies. That is why this legislation is such a mess.
I think this is a federal issue, though each state probably enacts their own legislation to deal with it. I imagine that most states have something similar.
Best,
Robert A. Franco
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