2004 Legislation
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SENATE BILL NO. 1290 – Medical assistance, recovery, when


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Bill Status

S1290.................................................by HEALTH AND WELFARE
MEDICAL ASSISTANCE - Amends existing law to clarify when medical assistance
may be recovered; and to specify when the cause of action accrues to void a
transfer which was made without adequate consideration.
02/09    Senate intro - 1st rdg - to printing
02/10    Rpt prt - to Health/Wel
03/10    Rpt out - rec d/p - to 2nd rdg
03/11    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 29-0-6
      AYES -- Andreason, Bailey, Bunderson, Burkett, Burtenshaw,
      Calabretta, Compton, Darrington, Gannon, Geddes, Goedde, Hill,
      Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
      McWilliams, Noble, Pearce, Richardson, Schroeder, Sorensen, Stegner,
      Sweet, Werk
      NAYS -- None
      Absent and excused -- Brandt, Cameron, Davis, Noh, Stennett, Williams
    Floor Sponsor - Sweet
    Title apvd - to House
03/16    House intro - 1st rdg - to Health/Wel
03/18    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
03/20    3rd rdg - PASSED - 63-0-7
      AYES -- Andersen, Barraclough, Barrett, Bayer, Bell, Black, Block,
      Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy, Deal,
      Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Henbest, Jaquet, Jones, Kellogg, Kulczyk,
      Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
      Miller, Mitchell, Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould,
      Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
      Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smylie, Snodgrass,
      Stevenson, Wills, Wood
      NAYS -- None
      Absent and excused -- Bauer, Bedke, Clark, Harwood, Smith(24), Trail,
      Mr. Speaker
    Floor Sponsor - Nielsen
    Title apvd - to Senate
03/20    To enrol - Rpt enrol - Pres signed
03/22    Sp signed - To Governor
03/23    Governor signed
         Session Law Chapter 216
         Effective: 07/01/04

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                       IN THE SENATE
                                    SENATE BILL NO. 1290
                              BY HEALTH AND WELFARE COMMITTEE
  1                                        AN ACT
  5        SIDERATION.
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION  1.  That  Section  56-218, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
  9        56-218.  RECOVERY OF CERTAIN MEDICAL ASSISTANCE. (1) Except where exempted
 10    or waived in accordance with federal law medical assistance pursuant  to  this
 11    chapter  paid  on behalf of an individual who was fifty-five (55) years of age
 12    or older when the individual received such assistance may  be  recovered  from
 13    the  individual's  estate, and the estate of the surviving spouse, if any, for
 14    such aid paid to either or both; provided, however, that claim for such  medi-
 15    cal assistance correctly paid to the individual may be established against the
 16    estate  of either spouse, but there shall be no adjustment or recovery thereof
 17    until after the death of the surviving spouse, if any, and only at a time when
 18    the individual has no surviving child who is under twenty-one  (21)  years  of
 19    age  or  is  blind or permanently and totally disabled as defined in 42 U.S.C.
 20    1382c. Transfers of real or personal property, on or after the look-back dates
 21    defined in 42 U.S.C. 1396p, by recipients of such aid, or their spouses, with-
 22    out adequate consideration are voidable and may be set aside by an  action  in
 23    the district court.
 24        (2)  Except where there is a surviving spouse, or a surviving child who is
 25    under twenty-one (21) years of age or is blind or permanently and totally dis-
 26    abled as defined in 42 U.S.C. 1382c, the amount of any medical assistance paid
 27    under this chapter on behalf of an individual who was fifty-five (55) years of
 28    age  or  older when the individual received such assistance is a claim against
 29    the estate in any guardianship or conservatorship proceedings and may be  paid
 30    from the estate.
 31        (3)  Nothing  in this section authorizes the recovery of the amount of any
 32    aid from the estate or surviving spouse of a recipient to the extent that  the
 33    need for aid resulted from a crime committed against the recipient.
 34        (4)  For purposes of this section, the term "estate" shall include:
 35        (a)  All  real  and personal property and other assets included within the
 36        individual's estate, as defined for purposes of state probate law; and
 37        (b)  Any other real and personal property and other assets  in  which  the
 38        individual  had  any  legal title or interest at the time of death (to the
 39        extent of such interest), including such assets conveyed  to  a  survivor,
 40        heir,  or assign of the deceased individual through joint tenancy, tenancy
 41        in common, survivorship, life estate, living trust or other arrangement.
 42        (5)  Claims made pursuant to this section shall be classified and paid  as
 43    a debt with preference as defined in section 15-3-805(5), Idaho Code. Any dis-
  1    tribution or transfer of the estate prior to satisfying such claim is voidable
  2    and  may  be set aside by an action in the district court. The personal repre-
  3    sentative of every estate subject to a claim under this section  must,  within
  4    thirty (30) days of the appointment, give notice in writing to the director of
  5    his or her appointment to administer the estate.
  6        (6)  The department may file a notice of lien against the property of any
  7    estate  subject  to  a  claim  under  this section. In order to perfect a lien
  8    against real or personal property, the department shall,  within  ninety  (90)
  9    days  after  the  personal representative or successor makes a written request
 10    for prompt action to the director, or two (2) years  from  the  death  of  the
 11    individual  for whom medical assistance was paid under this chapter, whichever
 12    is sooner, file a notice of lien in the same general form and manner  as  pro-
 13    vided  in section 56-218A(3)(a), Idaho Code, in the office of the secretary of
 14    state, pursuant to section 45-1904, Idaho Code. Failure to file  a  notice  of
 15    lien does not affect the validity of claims made pursuant to this section.
 16        (7)  The director shall promulgate rules reasonably necessary to implement
 17    this  section including, but not limited to, rules establishing undue hardship
 18    waivers for the following circumstances:
 19        (a)  The only asset of the estate provides the primary source  of  support
 20        for other family members; or
 21        (b)  The estate has a value below an amount specified in the rules; or
 22        (c)  Recovery  under  the lien by the department will entitle the heirs of
 23        the deceased individual to public assistance.
 24        (8)  The cause of action to void a transfer without adequate consideration
 25    established in this section shall not be deemed  to  have  accrued  until  the
 26    department  discovers,  or reasonably could have discovered, the facts consti-
 27    tuting the transfer without adequate consideration.

Statement of Purpose / Fiscal Impact

                     STATEMENT  OF  PURPOSE
                            RS 13525
Under federal and state law, the state is authorized to set aside
transfers of assets owned by recipients of Medicaid where the
transfer is made without adequate consideration and those assets
could have been used to pay for the medical assistance provided
through Medicaid.  In a recent decision, a state district court
ruled that the state's action was barred by a four year statute of
limitations which ran from the date of the transfer even though the
circumstances of the transfer were not reasonably discovered by the
state until after the four years had elapsed.  The proposed
legislation adds language to Idaho Code Section 56-218 that would
prevent the statute of limitations from running until such time as
the state discovers, or reasonably could have discovered, that the
asset transfer was without adequate consideration.  "Discovers" or
"reasonably could have discovered" as used in proposed subsection
56-218(8) is intended to have the same meaning as "discovery", as
interpreted by the courts, in subsection 5-218(4), Idaho Code.

The proposed legislation also makes a technical correction to Idaho
Code 56-218 to clarify that the non-Medicaid spouse of a Medicaid
recipient need not survive the Medicaid recipient in order for the
department to file a claim against the community property of the
non-Medicaid spouse's estate.

                         FISCAL  IMPACT
Additional Medicaid recovery is difficult to estimate because
details of transfers have been concealed from the state.  For
purposes of this legislation, additional recovery is estimated as

     SFY 2005:  $100,000
     SFY 2006:  $100,000
     SFY 2007:  $100,000
     SFY 2008:  $100,000
     SFY 2009:  $100,000

Name:     Kathleen Allyn
Agency:   Department of Health and Welfare
Phone:    208-334-5747

Statement of Purpose/Fiscal Impact                   S 1290