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H0658.................................................by HEALTH AND WELFARE
LONG-TERM CARE PARTNERSHIP PROGRAM - Adds to existing law to adopt the
Long-term Care Partnership Program; to define terms; to specify the
operation of the program; to establish the provisions of asset disregard;
to specify terms of eligibility; to provide administration by the
Department of Health and Welfare with participation by the Department of
Insurance; to provide notice requirements; and to provide that the law
becomes effective when necessary federal repeal of restrictions occur.
02/11 House intro - 1st rdg - to printing
02/12 Rpt prt - to Health/Wel
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 67-1-2
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
Jones, Kellogg, Lake, Langford, Langhorst, Martinez, McGeachin,
McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Robison, Rydalch,
Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30),
Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr.
Speaker
NAYS -- Kulczyk
Absent and excused -- Crow, Roberts
Floor Sponsor - McGeachin
Title apvd - to Senate
02/26 Senate intro - 1st rdg - to Health/Wel
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/17 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
Marley, McKenzie, McWilliams, Noh, Pearce, Richardson, Schroeder,
Sorensen, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Noble
Floor Sponsor - Bailey
Title apvd - to House
03/18 To enrol - Rpt enrol - Sp signed
03/19 Pres signed - To Governor
03/23 Governor signed
Session Law Chapter 261
Effective: 60 days after repeal of restrictions
on asset protection in the Omnibus Budget
Reconcilation Act of 1993
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 658
BY HEALTH AND WELFARE COMMITTEE
1 AN ACT
2 RELATING TO MEDICAID ELIGIBILITY; AMENDING TITLE 56, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW CHAPTER 12, TITLE 56, IDAHO CODE, TO ADOPT THE LONG-TERM
4 CARE PARTNERSHIP PROGRAM, TO PROVIDE A SHORT TITLE, TO DEFINE TERMS, TO
5 SPECIFY THE OPERATION OF THE PROGRAM AND ESTABLISH THE PROVISIONS OF ASSET
6 DISREGARD, TO SPECIFY TERMS OF ELIGIBILITY, TO PROVIDE ADMINISTRATION, AND
7 TO PROVIDE NOTICE REQUIREMENTS; AND PROVIDING AN EFFECTIVE DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Title 56, Idaho Code, be, and the same is hereby amended
10 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
11 ter 12, Title 56, Idaho Code, and to read as follows:
12 CHAPTER 12
13 LONG-TERM CARE PARTNERSHIP PROGRAM
14 56-1201. SHORT TITLE. This chapter shall be known and may be cited as the
15 "Idaho Long-term Care Partnership Program."
16 56-1202. DEFINITIONS. The following words and phrases when used in this
17 chapter have the meanings given to them unless the context clearly indicates
18 otherwise:
19 (1) "Asset disregard" means the total assets an individual owns and may
20 retain under medicaid and still qualify for benefits at the time the individ-
21 ual applies for benefits:
22 (a) If the individual is a beneficiary of a long-term care partnership
23 program approved policy; and
24 (b) Has exhausted the benefits of the policy.
25 (2) "Department" means the department of health and welfare.
26 (3) "Long-term care partnership program approved policy" means a long-
27 term care insurance policy which is approved by the department of insurance
28 and is provided through state approved long-term care insurers through the
29 Idaho long-term care partnership program.
30 (4) "Medicaid" means the federal medical assistance program established
31 under title XIX of the social security act.
32 56-1203. LONG-TERM CARE PARTNERSHIP PROGRAM. (1) Upon the repeal of
33 restrictions to asset protection contained in the omnibus budget reconcilia-
34 tion act of 1993 (public law 103-66, 107 Stat. 312), there shall be estab-
35 lished the Idaho long-term care partnership program, to be administered by the
36 department with the assistance of the department of insurance to do the fol-
37 lowing:
38 (a) Provide incentives for individuals to insure against the costs of
39 providing for their long-term care needs;
40 (b) Provide a mechanism for individuals to qualify for coverage of the
2
1 cost of their long-term care needs under medicaid without first being
2 required to substantially exhaust their resources;
3 (c) Provide counseling services to individuals planning for their long-
4 term care needs; and
5 (d) Alleviate the financial burden on the state's medical assistance pro-
6 gram by encouraging the pursuit of private initiatives.
7 (2) Upon exhausting benefits under a long-term care partnership program
8 policy, certain resources of an individual, as described in subsection (3) of
9 this section, shall not be considered by the department as a determination of
10 any of the following:
11 (a) Eligibility for medicaid;
12 (b) Amount of any medicaid payment; or
13 (c) Any subsequent recovery by the state of a payment for medical ser-
14 vices.
15 (3) The department shall promulgate necessary rules and amendments to the
16 state plan to allow for asset disregard. To provide asset disregard, for pur-
17 chasers of a long-term care partnership program policy, the department shall
18 count insurance benefits paid under the policy toward asset disregard to the
19 extent the payments are for covered services under the long-term care partner-
20 ship program policy.
21 56-1204. SPECIFIC ELIGIBILITY. (1) An individual who is a beneficiary of
22 a long-term care partnership program policy is eligible for assistance under
23 medicaid using the asset disregard under section 56-1203(3), Idaho Code.
24 (2) If the program is discontinued, an individual who purchased a long-
25 term care partnership policy prior to the date the program is discontinued
26 shall be eligible to receive asset disregard.
27 (3) The department may enter into reciprocal agreements with other states
28 to extend the asset disregard to residents of the state who purchased long-
29 term care policies in another state which has a substantially similar asset
30 disregard program to the program under section 56-1203, Idaho Code.
31 56-1205. ADMINISTRATION. The department and the department of insurance
32 are authorized to adopt rules to implement the provisions of this chapter and
33 for its administration.
34 56-1206. NOTICE REQUIREMENT. (1) A long-term care insurance policy issued
35 after the effective date of this chapter shall contain a notice provision to
36 the consumer detailing in plain language the current law pertaining to asset
37 disregard and asset tests.
38 (2) The notice to the consumer under subsection (1) of this section shall
39 be developed by the director of the department of insurance.
40 SECTION 2. This act shall be in full force and effect sixty (60) days
41 after the date of repeal of the restrictions to asset protection contained in
42 the Omnibus Budget Reconciliation Act of 1993 (public law 103-66, 107 Stat.
43 312).
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STATEMENT OF PURPOSE
RS 13895
The purpose of this legislation is to establish the Idaho Long-
term Care Partnership Program. It is an effort to control the
spiraling costs of long-term care on the Medicaid budget, and to
provide an incentive for people to purchase their own long-term
care insurance. This legislation would become effective
immediately upon repeal of restrictions to asset protection
contained in the 1993 Omnibus Budget Reconciliation Act. The
Department of Health & Welfare shall count insurance benefits
paid under a private policy toward asset disregard to the extent
the payments are for covered services under the long-term care
partnership program.
FISCAL IMPACT
This program will be administered by the Idaho Department of
Health & Welfare and the Idaho Department of Insurance. The
Department of Health & Welfare has indicated that various start
up costs cannot be accurately estimated at this time. However,
as an indication of potential start up costs, the four states
that successfully implemented partnership programs spent an
average of $2.7 million per state in grant funds to develop their
programs. The Department of Insurance currently provides
marketing and counseling services for long-term care through a
grant it receives from the federal government. Based on
estimations, it would cost less than $100,000.00 per year and
require 1.5 additional FTE to administer this program through the
self-funded Department of Insurance. The Governor's Office has
estimated that for each long-term care policy, there is an
associated savings of approximately $5000.00 to the Medicaid
program, and $1600.00 to the Medicare program. With 11,000
active policies in Idaho, that translates to more than $70
million cost avoidance to our publicly financed health care
programs.
Contact
Name: Representative Janice McGeachin
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 658