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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 - 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.
]]]] 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".
]]]] 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
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