HF 3222

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; clarifying certain asset transfers; amending medical
assistance preferred drug list; creating a cause of action for certain asset transfers;
changing medical assistance lien provisions; modifying a children's pilot
program; establishing a statewide health information exchange; allowing certain
claims against an estate; amending Minnesota Statutes 2006, sections 256B.056,
subdivision 4a; 256B.0571, subdivisions 8, 15, by adding a subdivision;
256B.0595, by adding subdivisions; 256B.0625, subdivision 13g; 256B.075,
subdivision 2; 524.3-803; proposing coding for new law in Minnesota Statutes,
chapter 256B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 256B.056, subdivision 4a, is amended to
read:

Subd. 4a.

Asset verification.

For purposes of verification, deleted text begin the value of deleted text end new text begin an individual
is not required to make a good faith effort to sell new text end a life estate new text begin that is not excluded under
subdivision 2 and the life estate new text end shall be deleted text begin considered deleted text end new text begin deemed new text end not salable unless the owner
of the remainder interest intends to purchase the life estate, or the owner of the life estate
and the owner of the remainder sell the entire property. new text begin This subdivision applies only for
the purpose of determining eligibility for medical assistance, and does not apply to the
valuation of assets owned by either the institutional spouse or the community spouse
under section 256B.059, subdivision 2.
new text end

Sec. 2.

Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to read:

Subd. 8.

Program established.

(a) The commissioner, in cooperation with the
commissioner of commerce, shall establish the Minnesota partnership for long-term care
program to provide for the financing of long-term care through a combination of private
insurance and medical assistance.

(b) An individual who meets the requirements in this paragraph is eligible to
participate in the partnership program. The individual must:

(1) be a Minnesota resident at the time coverage first became effective under the
partnership policy;

(2) be a beneficiary of a partnership policy that (i) is issued on or after the effective
date of the state plan amendment implementing the partnership program in Minnesota,
deleted text begin or deleted text end (ii) qualifies as a partnership policy under the provisions of subdivision 8a new text begin , or (iii) if
permitted under subdivision 17, qualifies for a partnership program established by another
state under United States Code, title 42, section 1396p(b)(1)(C), and is either issued on
or after the effective date of the state plan amendment implementing the partnership
program in the state of issuance or qualifies for an exchange under the requirements of
the partnership program in that state new text end ; and

(3) have exhausted all of the benefits under the partnership policy as described in this
section. Benefits received under a long-term care insurance policy before July 1, 2006, do
not count toward the exhaustion of benefits required in this subdivision.

Sec. 3.

Minnesota Statutes 2006, section 256B.0571, subdivision 15, is amended to
read:

Subd. 15.

Limitation on liens.

(a) An individual's interest in real property shall not
be subject to a medical assistance lien new text begin under sections 514.980 to 514.985 new text end or a deleted text begin notice of
potential claim deleted text end new text begin lien arising under section 256B.15 new text end while and to the extent it is protected
under subdivision 9. new text begin An individual's interest in real property that exceeds the value
protected under subdivision 9 is subject to a lien for recovery.
new text end

(b) Medical assistance liens new text begin under sections 514.980 to 514.985 new text end or liens arising
under deleted text begin notices of potential claims deleted text end new text begin section 256B.15 new text end against an individual's interests in real
property in the individual's estate that are designated as protected under subdivision 13,
paragraph (b), shall be released to the extent of the dollar value of the protection applied
to the interest.

(c) If an interest in real property is protected from a lien for recovery of medical
assistance paid on behalf of the individual under paragraph (a) or (b), no lien for recovery
of medical assistance paid on behalf of that individual shall be filed against the protected
interest in real property after it is distributed to the individual's heirs or devisees.

Sec. 4.

Minnesota Statutes 2006, section 256B.0571, is amended by adding a
subdivision to read:

new text begin Subd. 17. new text end

new text begin Reciprocal agreements. new text end

new text begin The commissioner may enter into an agreement
with any other state with a partnership program under United States Code, title 42,
section 1396p(b)(1)(C), for reciprocal recognition of qualified long-term care insurance
policies purchased under each state's partnership program. The commissioner shall notify
the secretary of the United States Department of Health and Human Services if the
commissioner declines to enter into a national reciprocal agreement.
new text end

Sec. 5.

Minnesota Statutes 2006, section 256B.0595, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Cause of action; transfer prior to death. new text end

new text begin (a) A cause of action exists
against a transferee who receives assets for less than fair market value, either:
new text end

new text begin (1) from a person who was a recipient of medical assistance and who made an
uncompensated transfer that was known to the county agency but a penalty period could
not be implemented under this section due to the death of the person; or
new text end

new text begin (2) from a person who was a recipient of medical assistance who made an
uncompensated transfer that was not known to the county agency and the transfer was
made with the intent to hinder, delay, or defraud the state or local agency from recovering
as allowed under section 256B.15. In determining intent under this clause consideration
may be given, among other factors, to whether:
new text end

new text begin (i) the transfer was to a family member;
new text end

new text begin (ii) the transferor retained possession or control of the property after the transfer;
new text end

new text begin (iii) the transfer was concealed;
new text end

new text begin (iv) the transfer included the majority of the transferor's assets;
new text end

new text begin (v) the value of the consideration received was not reasonably equivalent to the fair
market value of the property; and
new text end

new text begin (vi) the transfer occurred shortly before the death of the transferor.
new text end

new text begin (b) No cause of action exists under this subdivision unless:
new text end

new text begin (1) the transferee knew or should have known that the transfer was being made by a
person who was receiving medical assistance as described in section 256B.15, subdivision
1, paragraph (b); and
new text end

new text begin (2) the transferee received the asset without providing a reasonable equivalent fair
market value in exchange for the transfer.
new text end

new text begin (c) The cause of action is for the uncompensated amount of the transfer or the
amount of medical assistance paid on behalf of the person, whichever is less. The
uncompensated transfer amount is the fair market value of the asset at the time it was
given away, sold, or disposed of, less the amount of the compensation received.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256B.0595, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Filing cause of action; limitation. new text end

new text begin (a) The county of financial
responsibility under chapter 256G may bring a cause of action under any or all of the
following:
new text end

new text begin (1) subdivision 2, paragraphs (a) and (b);
new text end

new text begin (2) subdivision 3, paragraph (b);
new text end

new text begin (3) subdivision 4, clause (5); and
new text end

new text begin (4) subdivision 8
new text end

new text begin on behalf of the claimant who must be the commissioner.
new text end

new text begin (b) Notwithstanding any other law to the contrary, a cause of action under
subdivision 2, paragraph (a) or (b) or subdivision 8, must be commenced within six years
of the date the local agency determines that a transfer was made for less than fair market
value. Notwithstanding any other law to the contrary, a cause of action under subdivision
3, paragraph (b), or subdivision 4, clause (5), must be commenced within six years of the
date of approval of a waiver of the penalty period for a transfer for less than fair market
value based on undue hardship.
new text end

Sec. 7.

Minnesota Statutes 2006, section 256B.0625, subdivision 13g, is amended to
read:

Subd. 13g.

Preferred drug list.

(a) The commissioner shall adopt and implement a
preferred drug list by January 1, 2004. The commissioner may enter into a contract with
a vendor deleted text begin or one or more states deleted text end for the purpose of participating in a deleted text begin multistate deleted text end preferred
drug list and supplemental rebate program. The commissioner shall ensure that any
contract meets all federal requirements and maximizes federal financial participation. The
commissioner shall publish the preferred drug list annually in the State Register and shall
maintain an accurate and up-to-date list on the agency Web site.

(b) The commissioner may add to, delete from, and otherwise modify the preferred
drug list, after consulting with the Formulary Committee and appropriate medical
specialists and providing public notice and the opportunity for public comment.

(c) The commissioner shall adopt and administer the preferred drug list as part of the
administration of the supplemental drug rebate program. Reimbursement for prescription
drugs not on the preferred drug list may be subject to prior authorization, unless the drug
manufacturer signs a supplemental rebate contract.

(d) For purposes of this subdivision, "preferred drug list" means a list of prescription
drugs within designated therapeutic classes selected by the commissioner, for which prior
authorization based on the identity of the drug or class is not required.

(e) The commissioner shall seek any federal waivers or approvals necessary to
implement this subdivision.

Sec. 8.

Minnesota Statutes 2006, section 256B.075, subdivision 2, is amended to read:

Subd. 2.

Fee-for-service.

(a) The commissioner shall develop and implement
a disease management program for medical assistance and general assistance medical
care recipients who are not enrolled in the prepaid medical assistance or prepaid general
assistance medical care programs and who are receiving services on a fee-for-service basis.
The commissioner may contract with an outside organization to provide these services.

(b) The commissioner shall seek any federal approval necessary to implement this
section and to obtain federal matching funds.

(c) The commissioner shall develop and implement a pilot intensive care
management program for medical assistance children with complex and chronic medical
issues deleted text begin who are not able to participate in the metro-based U Special Kids program due
to geographic distance deleted text end .

Sec. 9.

new text begin [256B.0948] ADMINISTRATIVE SIMPLIFICATION FOR MEDICAL
ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Statewide health information exchange. new text end

new text begin The commissioner of
human services shall participate in a statewide health information exchange, which is
necessary for the efficient administration of medical assistance under this chapter. The
health information exchange shall meet the following criteria:
new text end

new text begin (1) the health information exchange must be organized as a nonprofit legal entity so
that none of the entity's property or assets inure to any private organizations or individuals;
new text end

new text begin (2) a seat must be reserved on the board of directors or managers for the
commissioner, or the commissioner's designated representative, from which the
commissioner or the commissioner's designee may monitor, supervise, and participate in
the governance of the health information exchange;
new text end

new text begin (3) the health information exchange must be designed to advance state interests and
lessen the burdens of government by offering a variety of electronic health information
exchange capabilities and services which promote administrative simplification and
efficiency in the medical assistance program; and
new text end

new text begin (4) members, directors, managers, and officers of the health information exchange
maintain fiduciary duties to the health information exchange, including a duty of care, a
duty of loyalty, and a duty of good faith.
new text end

new text begin Subd. 2. new text end

new text begin Development expenses. new text end

new text begin Notwithstanding chapter 16C, the commissioner
may pay the state's prorated share of development related expenses retroactive to October
29, 2007, regardless of the date the participation agreement was signed.
new text end

Sec. 10.

Minnesota Statutes 2006, section 524.3-803, is amended to read:

524.3-803 LIMITATIONS ON PRESENTATION OF CLAIMS.

(a) All claims as defined in section 524.1-201(6), against a decedent's estate which
arose before the death of the decedent, including claims of the state and any subdivision
thereof, whether due or to become due, absolute or contingent, liquidated or unliquidated,
if not barred earlier by other statute of limitations, are barred against the estate, the personal
representative, and the heirs and devisees of the decedent, unless presented as follows:

(1) in the case of a creditor who is only entitled, under the United States Constitution
and under the Minnesota Constitution, to notice by publication under section 524.3-801,
within four months after the date of the court administrator's notice to creditors which
is subsequently published pursuant to section 524.3-801;

(2) in the case of a creditor who was served with notice under section 524.3-801(c),
within the later to expire of four months after the date of the first publication of notice to
creditors or one month after the service;

(3) within the later to expire of one year after the decedent's death, or one year after
June 16, 1989, whether or not notice to creditors has been published or served under
section 524.3-801, provided, however, that in the case of a decedent who died before June
16, 1989, no claim which was then barred by any provision of law may be deemed to have
been revived by the amendment of this section.

(b) All claims against a decedent's estate which arise at or after the death of the
decedent, including claims of the state and any subdivision thereof, whether due or to
become due, absolute or contingent, liquidated or unliquidated, are barred against the
estate, the personal representative, and the heirs and devisees of the decedent, unless
presented as follows:

(1) a claim based on a contract with the personal representative, within four months
after performance by the personal representative is due;

(2) any other claim, within four months after it arises.

(c) Nothing in this section affects or prevents:

(1) any proceeding to enforce any mortgage, pledge, or other lien upon property
of the estate;

(2) any proceeding to establish liability of the decedent or the personal representative
for which there is protection by liability insurance, to the limits of the insurance protection
only;

(3) the presentment and payment at any time within one year after the decedent's
death of any claim arising before the death of the decedent that is referred to in section
524.3-715, clause (18), although the same may be otherwise barred under this section; deleted text begin or
deleted text end

(4) the presentment and payment at any time before a petition is filed in compliance
with section 524.3-1001 or 524.3-1002 or a closing statement is filed under section
524.3-1003, of:

(i) any claim arising after the death of the decedent that is referred to in section
524.3-715, clause (18), although the same may be otherwise barred hereunder;

(ii) any other claim, including claims subject to clause (3), which would otherwise be
barred hereunder, upon allowance by the court upon petition of the personal representative
or the claimant for cause shown on notice and hearing as the court may direct deleted text begin . deleted text end new text begin ; or
new text end

new text begin (5) a state or county claim authorized by sections 246.53, 256B.15, and 256D.16.
new text end