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S1331................................................by JUDICIARY AND RULES
PUBLIC ASSISTANCE - Amends existing law relating to public assistance to
remove a provision relating to the transfer of an asset in the form of an
annuity; and to provide that, subject to certain exceptions, the transfer
of any asset not for fair market value is presumed to be for the purpose of
sheltering assets to qualify for medical assistance.
01/22 Senate intro - 1st rdg - to printing
01/23 Rpt prt - to Jud
02/05 Rpt out - rec d/p - to 2nd rdg
02/06 2nd rdg - to 3rd rdg
02/08 3rd rdg - PASSED - 23-10-2
AYES -- Andreason, Bastian, Bilyeu, Broadsword, Burkett, Coiner,
Corder, Darrington, Gannon, Hammond, Hill, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai(Sagness), McKague, Richardson, Schroeder,
Stegner, Stennett, Werk
NAYS -- Bair, Cameron, Fulcher, Geddes, Goedde, Heinrich, McGee,
McKenzie, Pearce, Siddoway
Absent and excused -- Davis, Jorgenson
Floor Sponsor - Burkett
Title apvd - to House
02/11 House intro - 1st rdg - to Jud
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 56-3-11
AYES -- Anderson, Andrus, Barrett, Bell, Bilbao, Bock, Boe, Bolz,
Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark, Collins,
Crane, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest, Henderson,
Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour, Loertscher,
Luker, Marriott, Mathews, McGeachin, Mortimer, Nielsen, Nonini,
Pasley-Stuart, Pence, Roberts, Ruchti, Rusche, Sayler, Shepherd(02),
Shepherd(08), Shively, Smith(30), Smith(24), Snodgrass, Stevenson,
Thayn, Thomas, Wood(27), Mr. Speaker
NAYS -- Bayer, Patrick, Vander Woude
Absent and excused -- Bedke, Black, Block, Moyle, Raybould, Ringo,
Schaefer, Shirley, Trail, Wills, Wood(35)
Floor Sponsor - Luker
Title apvd - to Senate
03/11 To enrol
03/12 Rpt enrol - Pres signed - Sp signed
03/13 To Governor
03/17 Governor signed
Session Law Chapter 146
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1331 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC ASSISTANCE; AMENDING SECTION 56-214, IDAHO CODE, TO REMOVE 3 A PROVISION RELATING TO THE TRANSFER OF AN ASSET IN THE FORM OF AN ANNUITY 4 AND TO PROVIDE THAT, SUBJECT TO CERTAIN EXCEPTIONS, THE TRANSFER OF ANY 5 ASSET NOT FOR FAIR MARKET VALUE IS PRESUMED TO BE FOR THE PURPOSE OF SHEL- 6 TERING ASSETS TO QUALIFY FOR MEDICAL ASSISTANCE. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 56-214, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 56-214. AWARD OF PUBLIC ASSISTANCE -- INELIGIBILITY UPON TRANSFER OF 11 PROPERTY. Upon the completion of the investigation, the state department shall 12 determine whether the applicant is eligible for public assistance under the 13 provisions of this act, the type and amount of public assistance he shall 14 receive, and the date upon which such public assistance shall begin. Public 15 assistance shall be paid in the manner prescribed by the state department. 16 (1) Assistance to families with children shall not be granted under this 17 act to any person who within six (6) months prior to applying for or at any 18 time during which such assistance is received, has either made an assignment 19 or transfer of property for the purpose of rendering himself eligible for 20 assistance under this act, or who has divested himself of any interest in 21 property without adequate consideration which interest or proceeds therefrom 22 could reasonably be expected to contribute to the support and maintenance of 23 such person and his family, except that any person who is ineligible for pub- 24 lic assistance due solely to such assignment or transfer shall become eligible 25 provided: 26 (a) There is a showing that such person has caused such property to be 27 assigned or transferred back to him; or 28 (b) There is a showing that the person to whom such property is assigned 29 or transferred has, subsequent to such assignment or transfer, met subsis- 30 tence and medical care costs exclusive of any obligation for support, of 31 such person or family, according to the department's assistance standard, 32 equal to, or in excess of, the market value of the property so assigned or 33 transferred; or 34 (c) There is a showing that the subsistence and medical care costs of 35 such person, according to the department's assistance standard, subsequent 36 to such assignment or transfer, equal or exceed the market value of the 37 property so assigned or transferred. 38 (2) Eligibility for old age assistance under section 56-207, Idaho Code, 39 or aid to the blind under section 56-208, Idaho Code, or aid to the disabled 40 under section 56-209a, Idaho Code, shall be determined by continuing to con- 41 sider as available any resource that was transferred prior to July 1, 1988, 42 until such resource is fully accounted for under the provisions of section 43 1613(c) of the social security act as such section read on June 30, 1988. 2 1 (3) Eligibility for medical assistance under section 56-209b, Idaho Code, 2 shall continue to apply the rules of the director of the department of health 3 and welfare concerning transfer of property as such rules read on October 29, 4 1988, to transfers that occur prior to July 1, 1989, to persons other than to 5 the spouse of the person receiving or applying for medical assistance, and to 6 interspousal transfers that occur prior to October 1, 1989. 7 (4) The provisions of section 1917(c) of the social security act as 8 amended by public law 100-360 and further amended by public law 100-485 and as 9 hereafter amended shall apply as of July 1, 1989, to transfers of assets 10 other than to the spouse, and as of October 1, 1989, to transfers between 11 spouses, except that such provisions shall not apply either to transfers that 12 occurred before July 1, 1988, or to transfers that have been fully accounted 13 for under subsection (3) of this section. Notwithstanding the foregoing, any 14 transfer of assets not otherwise specifically permitted by federal law or rule 15 of the department, whether ornot for fair market valueincluding, but not16limited to, a transfer in the form of an annuity,is presumed to be for the 17 purpose of sheltering assets to qualify for medical assistance. Such assets 18 transferred shall be counted as available in determining eligibility, and will 19 subject the applicant to penalties prescribed by the director, unless the 20 applicant for assistance can demonstrate by clear and convincing evidence that 21 the transfer was intended for another purpose. 22 (5) Any funds, securities, accounts, contracts and all other property 23 held in or transferred to a special needs trust as provided in chapter 14, 24 title 68, Idaho Code, section 15-5-409, Idaho Code, and section 15-5-409a, 25 Idaho Code, shall not be considered by the state department in determining 26 whether the applicant is eligible for public assistance under the provisions 27 of this act, so long as the action is permitted under the provisions of sec- 28 tion 1917(c) and (d) of the social security act, as amended. 29 (6) If any provision of this section or the application thereof to any 30 person or circumstance is held invalid, such invalidity shall not affect other 31 provisions or applications of the section that can be given effect without the 32 invalid provisions or applications, and to this end the provisions of this 33 section are severable.
STATEMENT OF PURPOSE
RS: 17556
The Department of Health & Welfare is currently in negotiated rule
making and other negotiations regarding rules for Medicaid. One
existing rule which is being negotiated concerns whether transfers
between husband and wife should, even if for fair market value, be
presumed to be for the purposes of sheltering assets for Medicaid,
even if such transfer is for the purchase of an annuity, for
example, otherwise allowed by federal law. Such rule may or may
not be amended. However, existing Idaho Code, Section 56-214(4)
contains that same provision and would invalidate any modification
of the rule. Therefore, the language in Section 56-214(4) is
stricken to allow the negotiation of the rule. No current actual
change is made in Medicaid procedures, since the rule is still in
place. Instead, this bill simply allows the rule to be changed,
but does not mandate the change. Therefore, there is no fiscal
effect to the statutory change. The change also only applies to
eligibility, and not to estate recovery.
FISCAL NOTE
This bill will have no fiscal impact.
CONTACT:
Robert L. Aldridge, Trust & Estate Professionals of Idaho, Inc.
Telephone: office: (208) 336-9880 Cell: (208) 631-2481
STATEMENT OF PURPOSE/FISCAL NOTE S 1331