2005 Legislation
Print Friendly

SENATE BILL NO. 1086 – Medical assistance, recovery

SENATE BILL NO. 1086

View Bill Status

View Bill Text

View Amendment

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

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN 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, or two (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.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                                     Moved 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".

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


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN 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, or two (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 / Fiscal Impact


                     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