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S1086aa...............................................by HEALTH AND WELFARE MEDICAL ASSISTANCE - Amends existing law to further govern procedures for claims for recovery against the estate of deceased recipients of medical assistance to provide a procedure for an exempt property allowance claim. 02/03 Senate intro - 1st rdg - to printing 02/04 Rpt prt - to Jud 03/01 Rpt out - to 14th Ord 03/04 Rpt out amen - to engros 03/07 Rpt engros - 1st rdg - to 2nd rdg as amen 03/08 2nd rdg - to 3rd rdg as amen 03/10 3rd rdg as amen - PASSED - 34-0-0, 1 vacancy AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- (District 21 seat vacant) Floor Sponsor - Richardson Title apvd - to House 03/11 House intro - 1st rdg - to Health/Wel 03/23 Rpt out - rec d/p - to 2nd rdg 03/24 2nd rdg - to 3rd rdg 03/28 3rd rdg - PASSED - 68-0-2 AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24)(Frost), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Anderson, Crow Floor Sponsor - Bilbao Title apvd - to Senate 03/29 To enrol 03/30 Rpt enrol - Pres signed 03/31 Sp signed - To Governor 04/06 Governor signed Session Law Chapter 304 Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE SENATE SENATE BILL NO. 1086 BY HEALTH AND WELFARE COMMITTEE 1 AN ACT 2 RELATING TO RECOVERY OF CERTAIN MEDICAL ASSISTANCE; AMENDING SECTION 56-218, 3 IDAHO CODE, TO FURTHER GOVERN PROCEDURE FOR CLAIMS FOR RECOVERY AGAINST 4 THE ESTATE OF DECEASED RECIPIENTS OF MEDICAL ASSISTANCE. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 56-218, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 56-218. RECOVERY OF CERTAIN MEDICAL ASSISTANCE. (1) Except where exempted 9 or waived in accordance with federal law medical assistance pursuant to this 10 chapter paid on behalf of an individual who was fifty-five (55) years of age 11 or older when the individual received such assistance may be recovered from 12 the individual's estate, and the estate of the spouse, if any, for such aid 13 paid to either or both; provided, however, that claim for such medical assis- 14 tance correctly paid to the individual may be established against the estate 15 of either spouse, but there shall be no adjustment or recovery thereof until 16 after the death of the spouse, if any, and only at a time when the individual 17 has no surviving child who is under twenty-one (21) years of age or is blind 18 or permanently and totally disabled as defined in 42 U.S.C. 1382c. Transfers 19 of real or personal property, on or after the look-back dates defined in 42 20 U.S.C. 1396p, by recipients of such aid, or their spouses, without adequate 21 consideration are voidable and may be set aside by an action in the district 22 court. 23 (2) Except where there is a surviving spouse, or a surviving child who is 24 under twenty-one (21) years of age or is blind or permanently and totally dis- 25 abled as defined in 42 U.S.C. 1382c, the amount of any medical assistance paid 26 under this chapter on behalf of an individual who was fifty-five (55) years of 27 age or older when the individual received such assistance is a claim against 28 the estate in any guardianship or conservatorship proceedings and may be paid 29 from the estate. 30 (3) Nothing in this section authorizes the recovery of the amount of any 31 aid from the estate or surviving spouse of a recipient to the extent that the 32 need for aid resulted from a crime committed against the recipient. 33 (4) (a) For purposes of this section, the term "estate" shall include: 34 (ai) All real and personal property and other assets included within 35 the individual's estate, as defined for purposes of state probate 36 law; and 37 (bii) Any other real and personal property and other assets in which 38 the individual had any legal title or interest at the time of death 39 (to the extent of such interest), including such assets conveyed to a 40 survivor, heir, or assign of the deceased individual through joint 41 tenancy, tenancy in common, survivorship, life estate, living trust 42 or other arrangement. 43 (b) The subpoena power of the director shall extend to the production of 2 1 financial and other records of decedents whose estates are subject to 2 claims under this section. No person, business or financial institution 3 shall be liable for the disclosure of such financial or other records to 4 the department, pursuant to a subpoena of the director. 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, except 7 that such claims shall have priority over any portion of the exempt property 8 allowance beyond distribution of actual personal property of the decedent in 9 the form of household furniture, automobiles, furnishings, appliances and per- 10 sonal effects. Any distribution or transfer of the estate prior to satisfying 11 such claim is voidable and may be set aside by an action in the district 12 court. The personal representative of every estate subject to a claim under 13 this section must, within thirty (30) days of the appointment, give notice in 14 writing to the director of his or her appointment to administer the estate. 15 (6) The department may file a notice of lien against the property of any 16 estate subject to a claim under this section. In order to perfect a lien 17 against real or personal property, the department shall, within ninety (90) 18 days after the personal representative or successor makes a written request 19 for prompt action to the director, ortwo (2)three (3) years from the death 20 of the individual for whom medical assistance was paid under this chapter, 21 whichever is sooner, file a notice of lien in the same general form and manner 22 as provided in section 56-218A(3)(a), Idaho Code, in the office of the secre- 23 tary of state, pursuant to section 45-1904, Idaho Code. The department shall 24 have all of the rights of a mortgagee in the enforcement and collection of the 25 lien. Failure to file a notice of lien does not affect the validity of claims 26 made pursuant to this section. 27 (7) The director shall promulgate rules reasonably necessary to implement 28 this section including, but not limited to, rules establishing undue hardship 29 waivers for the following circumstances: 30 (a) The only asset of the estate provides the primary source of support 31 for other family members; or 32 (b) The estate has a value below an amount specified in the rules; or 33 (c) Recovery under the lien by the department will entitle the heirs of 34 the deceased individual to public assistance. 35 (8) The cause of action to void a transfer without adequate consideration 36 established in this section shall not be deemed to have accrued until the 37 department discovers, or reasonably could have discovered, the facts consti- 38 tuting the transfer without adequate consideration.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005Moved by Richardson Seconded by Darrington IN THE SENATE SENATE AMENDMENT TO S.B. NO. 1086 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, in line 33, delete "(a)"; in line 34, 3 delete "ai" and insert: "a"; in line 37, delete "bii" and insert: "b"; and 4 delete line 43; on page 2, delete lines 1 through 4; in line 6, delete ", 5 except"; delete lines 7, 8 and 9, and in line 10, delete "sonal effects"; in 6 line 14, following "estate." insert: "However, if an exempt property allowance 7 claim is made in an estate subject to a claim under this section by one (1) or 8 more persons not described in subsection (2) of this section, then, to the 9 extent such exempt property allowance claim exceeds the fair market value of 10 the actual personal property of the decedent held by the estate subject to a 11 claim under this section (including, but not limited to, such items as house- 12 hold furniture, automobiles, furnishings, appliances, and personal effects), 13 the persons making such exempt property allowance claim must file with the 14 court, and with the personal representative or administrator of the estate, 15 and with the department, a written statement under oath containing the follow- 16 ing: 17 (a) A statement that no personal property of the decedent has been trans- 18 ferred without adequate consideration to any person or entity, including 19 any one (1) or more of the persons making the exempt property allowance 20 claim, to the actual knowledge of any of the persons making the exempt 21 property allowance claim, within a time period commencing one (1) year 22 prior to the death of the decedent and ending on the date of the state- 23 ment; or 24 (b) A statement that personal property of the decedent has been trans- 25 ferred without adequate consideration to any person or entity, including 26 one (1) or more of the persons making the exempt property allowance claim, 27 within a time period commencing one (1) year prior to the death of the 28 decedent and ending on the date of the statement, to the actual knowledge 29 of any of the persons making the exempt property allowance claim, and 30 stating the fair market value of the personal property so transferred, and 31 stating a reasonable description of such property, and stating the method 32 of determining the fair market value of the personal property so trans- 33 ferred. 34 If the written statement indicates that there has been such a transfer of per- 35 sonal property, then the fair market value of the personal property so trans- 36 ferred shall be subtracted from the remaining exempt property allowance claim, 37 after subtraction of the personal property held by the estate, as described 38 above, and only any still remaining portion of the exempt property claim may 39 be paid by the estate to the persons making the exempt property allowance 40 claim. The statement submitted under paragraph (a) or (b) of this subsection, 41 must be signed under oath by all persons making the exempt property claim."; 42 in line 23, delete "The department shall"; delete line 24; and in line 25, 43 delete "lien.". 2 1 CORRECTIONS TO TITLE 2 On page 1, in line 4, following "ASSISTANCE" insert: "TO PROVIDE A PROCE- 3 DURE FOR AN EXEMPT PROPERTY ALLOWANCE CLAIM".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE SENATE SENATE BILL NO. 1086, As Amended BY HEALTH AND WELFARE COMMITTEE 1 AN ACT 2 RELATING TO RECOVERY OF CERTAIN MEDICAL ASSISTANCE; AMENDING SECTION 56-218, 3 IDAHO CODE, TO FURTHER GOVERN PROCEDURE FOR CLAIMS FOR RECOVERY AGAINST 4 THE ESTATE OF DECEASED RECIPIENTS OF MEDICAL ASSISTANCE TO PROVIDE A PRO- 5 CEDURE FOR AN EXEMPT PROPERTY ALLOWANCE CLAIM. 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 spouse, if any, for such aid 14 paid to either or both; provided, however, that claim for such medical assis- 15 tance correctly paid to the individual may be established against the estate 16 of either spouse, but there shall be no adjustment or recovery thereof until 17 after the death of the spouse, if any, and only at a time when the individual 18 has no surviving child who is under twenty-one (21) years of age or is blind 19 or permanently and totally disabled as defined in 42 U.S.C. 1382c. Transfers 20 of real or personal property, on or after the look-back dates defined in 42 21 U.S.C. 1396p, by recipients of such aid, or their spouses, without adequate 22 consideration are voidable and may be set aside by an action in the district 23 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 36 the individual's estate, as defined for purposes of state probate 37 law; and 38 (b) Any other real and personal property and other assets in which 39 the individual had any legal title or interest at the time of death 40 (to the extent of such interest), including such assets conveyed to a 41 survivor, heir, or assign of the deceased individual through joint 42 tenancy, tenancy in common, survivorship, life estate, living trust 43 or other arrangement. 2 1 (5) Claims made pursuant to this section shall be classified and paid as 2 a debt with preference as defined in section 15-3-805(5), Idaho Code. Any dis- 3 tribution or transfer of the estate prior to satisfying such claim is voidable 4 and may be set aside by an action in the district court. The personal repre- 5 sentative of every estate subject to a claim under this section must, within 6 thirty (30) days of the appointment, give notice in writing to the director of 7 his or her appointment to administer the estate. However, if an exempt prop- 8 erty allowance claim is made in an estate subject to a claim under this sec- 9 tion by one (1) or more persons not described in subsection (2) of this sec- 10 tion, then, to the extent such exempt property allowance claim exceeds the 11 fair market value of the actual personal property of the decedent held by the 12 estate subject to a claim under this section (including, but not limited to, 13 such items as household furniture, automobiles, furnishings, appliances, and 14 personal effects), the persons making such exempt property allowance claim 15 must file with the court, and with the personal representative or administra- 16 tor of the estate, and with the department, a written statement under oath 17 containing the following: 18 (a) A statement that no personal property of the decedent has been trans- 19 ferred without adequate consideration to any person or entity, including 20 any one (1) or more of the persons making the exempt property allowance 21 claim, to the actual knowledge of any of the persons making the exempt 22 property allowance claim, within a time period commencing one (1) year 23 prior to the death of the decedent and ending on the date of the state- 24 ment; or 25 (b) A statement that personal property of the decedent has been trans- 26 ferred without adequate consideration to any person or entity, including 27 one (1) or more of the persons making the exempt property allowance claim, 28 within a time period commencing one (1) year prior to the death of the 29 decedent and ending on the date of the statement, to the actual knowledge 30 of any of the persons making the exempt property allowance claim, and 31 stating the fair market value of the personal property so transferred, and 32 stating a reasonable description of such property, and stating the method 33 of determining the fair market value of the personal property so trans- 34 ferred. 35 If the written statement indicates that there has been such a transfer of per- 36 sonal property, then the fair market value of the personal property so trans- 37 ferred shall be subtracted from the remaining exempt property allowance claim, 38 after subtraction of the personal property held by the estate, as described 39 above, and only any still remaining portion of the exempt property claim may 40 be paid by the estate to the persons making the exempt property allowance 41 claim. The statement submitted under paragraph (a) or (b) of this subsection, 42 must be signed under oath by all persons making the exempt property claim. 43 (6) The department may file a notice of lien against the property of any 44 estate subject to a claim under this section. In order to perfect a lien 45 against real or personal property, the department shall, within ninety (90) 46 days after the personal representative or successor makes a written request 47 for prompt action to the director, ortwo (2)three (3) years from the death 48 of the individual for whom medical assistance was paid under this chapter, 49 whichever is sooner, file a notice of lien in the same general form and manner 50 as provided in section 56-218A(3)(a), Idaho Code, in the office of the secre- 51 tary of state, pursuant to section 45-1904, Idaho Code. Failure to file a 52 notice of lien does not affect the validity of claims made pursuant to this 53 section. 54 (7) The director shall promulgate rules reasonably necessary to implement 55 this section including, but not limited to, rules establishing undue hardship 3 1 waivers for the following circumstances: 2 (a) The only asset of the estate provides the primary source of support 3 for other family members; or 4 (b) The estate has a value below an amount specified in the rules; or 5 (c) Recovery under the lien by the department will entitle the heirs of 6 the deceased individual to public assistance. 7 (8) The cause of action to void a transfer without adequate consideration 8 established in this section shall not be deemed to have accrued until the 9 department discovers, or reasonably could have discovered, the facts consti- 10 tuting the transfer without adequate consideration.
STATEMENT OF PURPOSE RS 14493c1 Idaho Code 56-218 provides for the recovery of medical assistance (Medicaid) payments made after the recipient reaches age 55, from the probate estate of the Medicaid recipient and the recipient's spouse. Recovery is made only after the death of both spouses and only when there is no minor or disabled child. Recovery is made through the probate estate process, but can be made from all of the couple's assets, including those assets otherwise passing outside probate through trusts, life estates, and similar arrangements. Sometimes the Medicaid recipient's home is abandoned by family members who do not wish to open probate. In such cases the Public Administrator (the County Treasurer) is appointed to administer the estate which may consist only of the decedent's home. The change to the Medicaid lien provision would permit the Department to foreclose its Medicaid lien directly (after the death of both spouses), instead of recovering through the probate estate. This process would avoid unnecessary time and expense of the Department, the Public Administrators, and the probate courts. The time frame for filing a lien is also increased from two years to three years to comport with the change made to the probate code in 2004 which allows three years to file a probate claim. The exempt property allowance is intended to permit a decedent's children to keep a limited amount of family mementos and heirlooms. However, the probate code permits the exempt property allowance to be paid in cash or from other assets of the estate such as the real property. Neither Oregon nor Washington permit such payments ahead of Medicaid estate recovery. The change to the priority language would allow the adult children of Medicaid recipients to keep items of personal property up to $10,000 in value, but would not allow cash payment of the allowance or payment made from other assets of the estate until the Medicaid claim has been paid. Language referring to the Director’s subpoena power has been added to permit the Department to locate and discover assets of decedents whose estates are subject to claims by the Department. FISCAL NOTE Estimated positive impact of $525,000. CONTACT Name: Leslie Clement Agency: Health and Welfare Phone: 364-1804 Statement of Purpose/Fiscal Note S 1086