2002 Legislation
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SENATE BILL NO. 1336 – Medical asst qual, asset transfr

SENATE BILL NO. 1336

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Daily Data Tracking History



S1336aa...............................................by HEALTH AND WELFARE
MEDICAL ASSISTANCE - QUALIFICATIONS - Amends existing law to further
describe conditions which may disqualify an individual when assets are
transferred to a spouse in order to qualify for medical assistance.
                                                                        
01/30    Senate intro - 1st rdg - to printing
01/31    Rpt prt - to Health/Wel
02/05    Rpt out - rec d/p - to 2nd rdg
02/06    2nd rdg - to 3rd rdg
02/08    To 14th Ord
    Rpt out amen - to engros
02/11    Rpt engros - 1st rdg - to 2nd rdg as amen
02/12    2nd rdg - to 3rd rdg as amen
02/15    3rd rdg as amen - PASSED - 34-0-1
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia,
      Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder,
      Sims, Sorensen, Stegner, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- Stennett
    Floor Sponsor - Ipsen
    Title apvd - to House
02/18    House intro - 1st rdg - to Health/Wel
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 51-0-19
      AYES -- Barraclough, Bell, Bieter, Black, Block, Boe, Bolz, Bradford,
      Bruneel, Callister, Campbell, Collins, Cuddy, Deal, Denney, Ellis,
      Ellsworth, Eskridge, Field(13), Field(20), Hadley, Hammond, Harwood,
      Henbest, Higgins, Jaquet, Kellogg(Duncan), Kendell, Kunz, Lake,
      Langford, Martinez, McKague, Montgomery, Moyle, Pearce, Raybould,
      Ridinger, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33),
      Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Young,
      NAYS -- None
      Absent and excused -- Aikele, Barrett, Bedke, Clark, Crow, Gagner,
      Gould, Hornbeck, Jones, Loertscher, Mader, Meyer, Mortensen,
      Pischner, Pomeroy, Roberts, Smith(23), Wood, Mr. Speaker
    Floor Sponsor - Ellis
    Title apvd - to Senate
03/11    To enrol
03/12    Rpt enrol - Pres signed - Sp signed
03/13    To Governor
03/26    Governor signed
         Session Law Chapter 279
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1336
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC ASSISTANCE; AMENDING SECTION 56-214, IDAHO CODE, TO FURTHER
  3        DESCRIBE CONDITIONS GOVERNING THE TRANSFER OF ASSETS TO QUALIFY FOR  MEDI-
  4        CAL ASSISTANCE AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section  56-214, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        56-214.  AWARD OF PUBLIC ASSISTANCE  --  INELIGIBILITY  UPON  TRANSFER  OF
  9    PROPERTY. Upon the completion of the investigation, the state department shall
 10    determine  whether  the  applicant is eligible for public assistance under the
 11    provisions of this act, the type and amount  of  public  assistance  he  shall
 12    receive,  and  the  date upon which such public assistance shall begin. Public
 13    assistance shall be paid in the manner prescribed by the state department.
 14        (1)  Assistance to families with children shall not be granted under  this
 15    act  to  any  person who within six (6) months prior to applying for or at any
 16    time during which such assistance is received, has either made  an  assignment
 17    or  transfer  of  property  for  the purpose of rendering himself eligible for
 18    assistance under this act, or who has divested  himself  of  any  interest  in
 19    property  without  adequate consideration which interest or proceeds therefrom
 20    could reasonably be expected to contribute to the support and  maintenance  of
 21    such  person and his family, except that any person who is ineligible for pub-
 22    lic assistance due solely to such assignment or transfer shall become eligible
 23    provided:
 24        (a)  tThere is a showing that such person has caused such property  to  be
 25        assigned or transferred back to him; or
 26        (b)  tThere is a showing that the person to whom such property is assigned
 27        or transferred has, subsequent to such assignment or transfer, met subsis-
 28        tence  and  medical care costs exclusive of any obligation for support, of
 29        such person or family, according to the department's assistance  standard,
 30        equal to, or in excess of, the market value of the property so assigned or
 31        transferred; or
 32        (c)  tThere  is  a  showing that the subsistence and medical care costs of
 33        such person, according to the department's assistance standard, subsequent
 34        to such assignment or transfer, equal or exceed the market  value  of  the
 35        property so assigned or transferred.
 36        (2)  Eligibility  for old age assistance under section 56-207, Idaho Code,
 37    or aid to the blind under section 56-208, Idaho Code, or aid to  the  disabled
 38    under  section  56-209a, Idaho Code, shall be determined by continuing to con-
 39    sider as available any resource that was transferred prior to  July  1,  1988,
 40    until  such  resource  is  fully accounted for under the provisions of section
 41    1613(c) of the social security act as such section read on June 30, 1988.
 42        (3)  Eligibility for medical assistance under section 56-209b, Idaho Code,
 43    shall continue to apply the rules of the director of the department of  health
                                                                        
                                           2
                                                                        
  1    and  welfare concerning transfer of property as such rules read on October 29,
  2    1988, to transfers that occur prior to July 1, 1989, to persons other than  to
  3    the  spouse of the person receiving or applying for medical assistance, and to
  4    interspousal transfers that occur prior to October 1, 1989.
  5        (4)  The provisions of section 1917(c)  of  the  social  security  act  as
  6    amended by public law 100-360 and further amended by public law 100-485 and as
  7    hereafter amended shall apply as of July 1, 1989, to transfers of assets other
  8    than  to  the spouse, and as of October 1, 1989, to transfers between spouses,
  9    except that such provisions shall not apply either to transfers that  occurred
 10    before  July 1, 1988, or to transfers that have been fully accounted for under
 11    subsection (3) of this section. Notwithstanding the foregoing, any transfer of
 12    assets, whether or not for fair market value including, but not limited to,  a
 13    transfer in the form of an annuity, between spouses or to another for the ben-
 14    efit  of  a  spouse, is presumed to be for the purpose of sheltering assets to
 15    qualify for medical assistance. Such assets transferred shall  be  counted  as
 16    available in determining eligibility, and will subject the applicant to penal-
 17    ties  prescribed  by  the  director,  unless  the applicant for assistance can
 18    demonstrate by clear and convincing evidence that the  transfer  was  intended
 19    for another purpose.
 20        (5)  Any  funds,  securities,  accounts,  contracts and all other property
 21    held in or transferred to a special needs trust as  provided  in  chapter  14,
 22    title  68,  Idaho  Code,  section 15-5-409, Idaho Code, and section 15-5-409a,
 23    Idaho Code, shall not be considered by the  state  department  in  determining
 24    whether  the  applicant is eligible for public assistance under the provisions
 25    of this act, so long as the action is permitted under the provisions  of  sec-
 26    tion 1917(c) and (d) of the social security act, as amended.
 27        (6)  If  any  provision  of this section or the application thereof to any
 28    person or circumstance is held invalid, such invalidity shall not affect other
 29    provisions or applications of the section that can be given effect without the
 30    invalid provisions or applications, and to this end  the  provisions  of  this
 31    section are severable.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Ipsen               
                                                                        
                                                     Seconded by Lodge               
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1336
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 2 of the printed bill, in line 12, following "assets" insert: "not
  3    otherwise specifically permitted by federal law".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1336, As Amended
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC ASSISTANCE; AMENDING SECTION 56-214, IDAHO CODE, TO FURTHER
  3        DESCRIBE CONDITIONS GOVERNING THE TRANSFER OF ASSETS TO QUALIFY FOR  MEDI-
  4        CAL ASSISTANCE AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section  56-214, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        56-214.  AWARD OF PUBLIC ASSISTANCE  --  INELIGIBILITY  UPON  TRANSFER  OF
  9    PROPERTY. Upon the completion of the investigation, the state department shall
 10    determine  whether  the  applicant is eligible for public assistance under the
 11    provisions of this act, the type and amount  of  public  assistance  he  shall
 12    receive,  and  the  date upon which such public assistance shall begin. Public
 13    assistance shall be paid in the manner prescribed by the state department.
 14        (1)  Assistance to families with children shall not be granted under  this
 15    act  to  any  person who within six (6) months prior to applying for or at any
 16    time during which such assistance is received, has either made  an  assignment
 17    or  transfer  of  property  for  the purpose of rendering himself eligible for
 18    assistance under this act, or who has divested  himself  of  any  interest  in
 19    property  without  adequate consideration which interest or proceeds therefrom
 20    could reasonably be expected to contribute to the support and  maintenance  of
 21    such  person and his family, except that any person who is ineligible for pub-
 22    lic assistance due solely to such assignment or transfer shall become eligible
 23    provided:
 24        (a)  tThere is a showing that such person has caused such property  to  be
 25        assigned or transferred back to him; or
 26        (b)  tThere is a showing that the person to whom such property is assigned
 27        or transferred has, subsequent to such assignment or transfer, met subsis-
 28        tence  and  medical care costs exclusive of any obligation for support, of
 29        such person or family, according to the department's assistance  standard,
 30        equal to, or in excess of, the market value of the property so assigned or
 31        transferred; or
 32        (c)  tThere  is  a  showing that the subsistence and medical care costs of
 33        such person, according to the department's assistance standard, subsequent
 34        to such assignment or transfer, equal or exceed the market  value  of  the
 35        property so assigned or transferred.
 36        (2)  Eligibility  for old age assistance under section 56-207, Idaho Code,
 37    or aid to the blind under section 56-208, Idaho Code, or aid to  the  disabled
 38    under  section  56-209a, Idaho Code, shall be determined by continuing to con-
 39    sider as available any resource that was transferred prior to  July  1,  1988,
 40    until  such  resource  is  fully accounted for under the provisions of section
 41    1613(c) of the social security act as such section read on June 30, 1988.
 42        (3)  Eligibility for medical assistance under section 56-209b, Idaho Code,
 43    shall continue to apply the rules of the director of the department of  health
                                                                        
                                           2
                                                                        
  1    and  welfare concerning transfer of property as such rules read on October 29,
  2    1988, to transfers that occur prior to July 1, 1989, to persons other than  to
  3    the  spouse of the person receiving or applying for medical assistance, and to
  4    interspousal transfers that occur prior to October 1, 1989.
  5        (4)  The provisions of section 1917(c)  of  the  social  security  act  as
  6    amended by public law 100-360 and further amended by public law 100-485 and as
  7    hereafter amended shall apply as of July 1, 1989, to transfers of assets other
  8    than  to  the spouse, and as of October 1, 1989, to transfers between spouses,
  9    except that such provisions shall not apply either to transfers that  occurred
 10    before  July 1, 1988, or to transfers that have been fully accounted for under
 11    subsection (3) of this section. Notwithstanding the foregoing, any transfer of
 12    assets not otherwise specifically permitted by federal law, whether or not for
 13    fair market value including, but not limited to, a transfer in the form of  an
 14    annuity,  between  spouses  or to another for the benefit of a spouse, is pre-
 15    sumed to be for the purpose of sheltering assets to qualify for medical assis-
 16    tance. Such assets transferred shall be counted as  available  in  determining
 17    eligibility,  and  will  subject  the applicant to penalties prescribed by the
 18    director, unless the applicant for assistance can  demonstrate  by  clear  and
 19    convincing evidence that the transfer was intended for another purpose.
 20        (5)  Any  funds,  securities,  accounts,  contracts and all other property
 21    held in or transferred to a special needs trust as  provided  in  chapter  14,
 22    title  68,  Idaho  Code,  section 15-5-409, Idaho Code, and section 15-5-409a,
 23    Idaho Code, shall not be considered by the  state  department  in  determining
 24    whether  the  applicant is eligible for public assistance under the provisions
 25    of this act, so long as the action is permitted under the provisions  of  sec-
 26    tion 1917(c) and (d) of the social security act, as amended.
 27        (6)  If  any  provision  of this section or the application thereof to any
 28    person or circumstance is held invalid, such invalidity shall not affect other
 29    provisions or applications of the section that can be given effect without the
 30    invalid provisions or applications, and to this end  the  provisions  of  this
 31    section are severable.

Statement of Purpose / Fiscal Impact


	           STATEMENT OF PURPOSE
                          RS 11492



Passage of this legislation would plug a loophole in federal 
Medicaid law where a wealthy married individual can become 
eligible for Medicaid nursing home benefits by purchasing an 
annuity, in an unlimited amount, for the benefit of his or her 
spouse.


                       FISCAL IMPACT


There are no costs connected with this proposed legislation.

Enactment of this provision should help contain future costs by

preventing relatively wealthy individuals from entering the

MedJcaid program.




CONTACT
Name:
Agency:
Phone:

Patti Campbell
Health and Welfare
334-5818


Statement of Purpose/Fiscal Impact                  S 1336