1998 Legislation
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HOUSE BILL NO. 434 – Medical assistance/recovery/estates

HOUSE BILL NO. 434

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Daily Data Tracking History



H0434........................................................by MR. SPEAKER
              Requested by: Department of Health and Welfare
MEDICAL ASSISTANCE - RECOVERY - Amends existing law, which allows the state
to seek recovery against estates for certain medical assistance, to provide
greater clarity concerning matters of notification by the personal
representative and limitations upon transfers of estate property.

01/12    House intro - 1st rdg - to printing
01/12    Rpt prt - to Health/Wel
01/21    Rpt out - rec d/p - to 2nd rdg
01/22    2nd rdg - to 3rd rdg
01/26    3rd rdg - PASSED - 64-5-1
      AYES -- Alexander, Alltus, Barraclough, Bell, Bieter, Bivens,
      Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
      Clark, Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Jaquet,
      Jones(22), Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake,
      Linford, Loertscher, Mader, McKague, Meyer, Miller, Mortensen,
      Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison,
      Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman,
      Tippets, Trail, Watson, Wheeler, Zimmermann, Mr Speaker
      NAYS -- Barrett, Hornbeck, Jones(20), Sali, Wood
      Absent and excused -- Jones(9)
    Floor Sponsor - Richman
    Title apvd - to Senate
01/27    Senate intro - 1st rdg - to Health/Wel
02/03    Rpt out - rec d/p - to 2nd rdg
02/04    2nd rdg - to 3rd rdg
02/05    3rd rdg - PASSED - 33-0-2
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Thorne, Twiggs,
      Wheeler, Whitworth
      NAYS--None
      Absent and excused--Stennett, Sweeney
    Floor Sponsor - Crow
    Title apvd - to House
02/06    To enrol
02/09    Rpt enrol - Sp signed
02/10    Pres signed
02/11    To Governor
02/11    Governor signed
         Session Law Chapter 9
         Effective: 07/01/98

Bill Text


H0434

                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 434

                                      BY MR. SPEAKER
                      Requested by: Department of Health and Welfare

 1                                        AN ACT
 2    RELATING TO RECOVERY OF MEDICAL ASSISTANCE;  AMENDING  SECTION  56-218,  IDAHO
 3        CODE,  AS AMENDED BY SECTION 2, CHAPTER 205, LAWS OF 1997, TO CLARIFY WHAT
 4        ESTATES ARE SUBJECT TO RECOVERY, TO DELINEATE  THE  TIME  LIMITATIONS  FOR
 5        FILING  ESTATE  RECOVERY LIENS AND TO REQUIRE NOTIFICATION OF THE DIRECTOR
 6        OF THE DEPARTMENT OF HEALTH AND WELFARE WHEN ESTATES SUBJECT  TO  RECOVERY
 7        ARE  PROBATED; AND AMENDING SECTION 15-3-801, IDAHO CODE, TO REQUIRE NOTI-
 8        FICATION OF THE DIRECTOR OF THE DEPARTMENT OF HEALTH AND  WELFARE  BY  THE
 9        PERSONAL REPRESENTATIVE OF AN ESTATE SUBJECT TO RECOVERY.

10    Be It Enacted by the Legislature of the State of Idaho:

11        SECTION  1.  That  Section  56-218,  Idaho  Code, as amended by Section 2,
12    Chapter 205, Laws of 1997, be, and the same is hereby amended to read as  fol-
13    lows:

14        56-218.  RECOVERY OF CERTAIN MEDICAL ASSISTANCE. (1) Except where exempted
15    or  waived  in accordance with federal law medical assistance pursuant to this
16    chapter paid on behalf of an individual who was fifty-five (55) years  of  age
17    or  older  when  the individual received such assistance may be recovered from
18    the  individual's  estate,  or if there be  no  estate  
19      and    the estate of the surviving spouse, if any,  shall be
20    charged  for such aid paid to either or both;  provided,  however,  that
21    claim  for  such  medical  assistance  correctly paid to the individual may be
22    established against the estate, but there shall be no adjustment  or  recovery
23    thereof  until  after the death of the surviving spouse, if any, and only at a
24    time when the individual has no surviving child who is under  twenty-one  (21)
25    years  of age or is blind or permanently and totally disabled as defined in 42
26    U.S.C. 1382c. Transfers of real or personal property , on  or  after  the
27    look-back  dates  defined  in  42  U.S.C.  1396p,  by recipients of such
28    aid , or their spouses,  without adequate consideration  are  void-
29    able and may be set aside by an action in the district court.
30        (2)  Except where there is a surviving spouse, or a surviving child who is
31    under twenty-one (21) years of age or is blind or permanently and totally dis-
32    abled as defined in 42 U.S.C. 1382c, the amount of any medical assistance paid
33    under this chapter on behalf of an individual who was fifty-five (55) years of
34    age  or  older when the individual received such assistance is a claim against
35    the estate in any guardianship or conservatorship proceedings and may be  paid
36    from the estate.
37        (3)  Nothing  in this section authorizes the recovery of the amount of any
38    aid from the estate or surviving spouse of a recipient to the extent that  the
39    need for aid resulted from a crime committed against the recipient.
40        (4)  For purposes of this section, the term "estate" shall include:
41        (a)  All  real  and personal property and other assets included within the
42        individual's  estate, as defined for purposes of state probate law; and
43        (b)  Any other real and personal property and other assets  in  which  the


                                          2

 1        individual  had  any  legal title or interest at the time of death (to the
 2        extent of such interest), including such assets conveyed  to  a  survivor,
 3        heir,  or assign of the deceased individual through joint tenancy, tenancy
 4        in common, survivorship, life estate, living trust or other arrangement.
 5        (5)  Claims made pursuant to this section shall be classified and paid  as
 6    a  debt  with  preference as defined in section 15-3-805(5), Idaho Code. 
 7    Any distribution or transfer of the estate prior to satisfying such  claim  is
 8    voidable and may be set aside by an action in the district court. The personal
 9    representative  of  every  estate  subject to a claim under this section must,
10    within thirty (30) days of the appointment, give  notice  in  writing  to  the
11    director of his or her appointment to administer the estate. 
12        (6)  The  department may file a notice of lien against the property of any
13    estate subject to a claim under this section.  In  order  to  perfect  a  lien
14    against  real  or  personal property, the department shall, within ninety (90)
15    days after the  department is notified in writing of      per-
16    sonal representative or successor makes a written request for prompt action to
17    the  director,  or  two  (2) years from  the death of the individual for
18    whom medical assistance was  paid  under  this  chapter,    whichever  is
19    sooner,    file  a notice of lien in the same general form and manner as
20    provided in section 56-218A(3)(a), Idaho Code, in the office of the  secretary
21    of state, pursuant to section 45-1904, Idaho Code. Failure to file a notice of
22    lien does not affect the validity of claims made pursuant to this section.
23        (7)  The director shall promulgate rules reasonably necessary to implement
24    this  section including, but not limited to, rules establishing undue hardship
25    waivers for the following circumstances:
26        (a)  The only asset of the estate provides the primary source  of  support
27        for other family members; or
28        (b)  The estate has a value below an amount specified in the rules; or
29        (c)  Recovery  under  the lien by the department will entitle the heirs of
30        the deceased individual to public assistance.

31        SECTION 2.  That Section 15-3-801, Idaho Code, be, and the same is  hereby
32    amended to read as follows:

33        15-3-801.  NOTICE  TO  CREDITORS. (a) Unless notice has already been given
34    under this section, a personal representative upon his appointment may publish
35    a notice to creditors once a week for three (3) successive weeks  in  a  news-
36    paper  of  general  circulation  in  the county announcing his appointment and
37    address and notifying creditors of the estate to present their  claims  within
38    four  (4)  months  after the date of the first publication of the notice or be
39    forever barred.
40        (b)  A personal representative may give written notice by  mail  or  other
41    delivery  to  any creditor, notifying the creditor to present his claim within
42    four (4) months after the published notice if given as provided in  subsection
43    (a) of this section or within sixty (60) days after the mailing or delivery of
44    the  notice,  whichever is later, or be forever barred. Written notice must be
45    the notice described in subsection (a) of this section or a similar notice.
46        (c)  The personal representative is not liable to any creditor or  to  any
47    successor of the decedent for giving or failing to give notice under this sec-
48    tion.
49          (d)  If  medical assistance was paid on behalf of the decedent when
50    the decedent was fifty-five (55) years of age or older, the personal represen-
51    tative shall provide written notice as required by  section  56-218(5),  Idaho
52    Code. 

Statement of Purpose / Fiscal Impact








    STATEMENT OF PURPOSE 
    RS07302
    
    
    The purpose of this legislation is to clarify existing law that allows the state to seek recovery 
    against the estates of the spouses of certain medical assistance recipients for the cost of care 
    provided to the recipient. A recent judicial interpretation of the current law has created conflict in 
    the jurisdictions and a potential loophole in the law that would defeat estate recovery efforts. 
    This legislation also clarifies the process by which estates of certain medical assistance 
    recipients notify the Department of the appointment of personal representatives, and certain 
    limitations on transfers of estate property. It also delineates time limitations for transfers of 
    property and for the placement of liens.
    
    FISCAL IMPACT
    The legislation is expected to result in no additional cost to the state.
    
    
    CONTACT
    Name: Kathleen Allyn
    Agency: Department of Health and Welfare
    Phone: 334-5747
    Statement of Purpose/Fiscal Impact
    
    H 434