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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
H0434|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN 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 estate19 and the estate of the surviving spouse, if any,shall be20chargedfor 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 thedepartment is notified in writing ofper- 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
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