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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
]]]] 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 2 RELATING TO RECOVERY OF MEDICAL ASSISTANCE; AMENDING SECTION 56-218, IDAHO 3 CODE, TO CLARIFY WHEN MEDICAL ASSISTANCE MAY BE RECOVERED AND TO SPECIFY 4 WHEN THE CAUSE OF ACTION ACCRUES TO VOID A TRANSFER WITHOUT ADEQUATE CON- 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 survivingspouse, 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 survivingspouse, 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- 2 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 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 follows: SFY 2005: $100,000 SFY 2006: $100,000 SFY 2007: $100,000 SFY 2008: $100,000 SFY 2009: $100,000 CONTACT Name: Kathleen Allyn Agency: Department of Health and Welfare Phone: 208-334-5747 Statement of Purpose/Fiscal Impact S 1290