Print Friendly SENATE BILL NO. 1088 – Medical assistnce, recovery, estate
SENATE BILL NO. 1088
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S1088.................................................by HEALTH AND WELFARE
MEDICAL ASSISTANCE - Amends existing law relating to the recovery of
certain medical assistance from the estate of deceased recipients to limit
distribution of the estate except under certain conditions.
02/03 Senate intro - 1st rdg - to printing
02/04 Rpt prt - to Jud
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1088
BY HEALTH AND WELFARE COMMITTEE
1 AN ACT
2 RELATING TO RECOVERY OF CERTAIN MEDICAL ASSISTANCE; AMENDING SECTION 56-218,
3 IDAHO CODE, TO LIMIT DISTRIBUTION OF THE ESTATE EXCEPT UNDER CONDITIONS
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. No distri-
19 bution of the estate of either spouse may be made, except to the surviving
20 spouse, or surviving child who is under twenty-one (21) years of age or is
21 blind or permanently and totally disabled as defined in 42 U.S.C. 1382c, until
22 recovery has been made. Transfers of real or personal property, on or after
23 the look-back dates defined in 42 U.S.C. 1396p, by recipients of such aid, or
24 their spouses, without adequate consideration are voidable and may be set
25 aside by an action in the district court.
26 (2) Except where there is a surviving spouse, or a surviving child who is
27 under twenty-one (21) years of age or is blind or permanently and totally dis-
28 abled as defined in 42 U.S.C. 1382c, the amount of any medical assistance paid
29 under this chapter on behalf of an individual who was fifty-five (55) years of
30 age or older when the individual received such assistance is a claim against
31 the estate in any guardianship or conservatorship proceedings and may be paid
32 from the estate.
33 (3) Nothing in this section authorizes the recovery of the amount of any
34 aid from the estate or surviving spouse of a recipient to the extent that the
35 need for aid resulted from a crime committed against the recipient.
36 (4) For purposes of this section, the term "estate" shall include:
37 (a) All real and personal property and other assets included within the
38 individual's estate, as defined for purposes of state probate law; and
39 (b) Any other real and personal property and other assets in which the
40 individual had any legal title or interest at the time of death (to the
41 extent of such interest), including such assets conveyed to a survivor,
42 heir, or assign of the deceased individual through joint tenancy, tenancy
43 in common, survivorship, life estate, living trust or other arrangement.
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
7 of his or her appointment to administer the estate.
8 (6) The department may file a notice of lien against the property of any
9 estate subject to a claim under this section. In order to perfect a lien
10 against real or personal property, the department shall, within ninety (90)
11 days after the personal representative or successor makes a written request
12 for prompt action to the director, or two (2) years from the death of the
13 individual for whom medical assistance was paid under this chapter, whichever
14 is sooner, file a notice of lien in the same general form and manner as pro-
15 vided in section 56-218A(3)(a), Idaho Code, in the office of the secretary of
16 state, pursuant to section 45-1904, Idaho Code. Failure to file a notice of
17 lien does not affect the validity of claims made pursuant to this section.
18 (7) The director shall promulgate rules reasonably necessary to implement
19 this section including, but not limited to, rules establishing undue hardship
20 waivers for the following circumstances:
21 (a) The only asset of the estate provides the primary source of support
22 for other family members; or
23 (b) The estate has a value below an amount specified in the rules; or
24 (c) Recovery under the lien by the department will entitle the heirs of
25 the deceased individual to public assistance.
26 (8) The cause of action to void a transfer without adequate consideration
27 established in this section shall not be deemed to have accrued until the
28 department discovers, or reasonably could have discovered, the facts consti-
29 tuting the transfer without adequate consideration.
STATEMENT OF PURPOSE
Idaho Code Section 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. When one spouse needs
Medicaid, the other spouse is allowed to keep most or all of the
couple's assets to provide for his or her own support.
Sometimes, after the death of one spouse, the family will
attempt to probate the estate and pass the couple’s property to
heirs other than the surviving spouse (usually to the adult
children). This has the effect of leaving the surviving spouse
destitute, often receiving public assistance, and transferring
the property out of reach of estate recovery. This change would
make clear that the couple's property cannot be distributed to
others, until the needs of the surviving spouse are met and
repayment of Medicaid is complete.
Estimated positive impact of $250,000.
Name: Leslie Clement
Agency: Health and Welfare
Statement of Purpose/Fiscal Note S 1088