HF 3615

as introduced - 89th Legislature (2015 - 2016) Posted on 03/31/2016 04:41pm

A bill for an act
relating to medical assistance; modifying estate recovery provisions; amending
Minnesota Statutes 2014, section 256B.15, subdivisions 1a, 1e, 2, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2014, section 256B.15, subdivision 1a, is amended to
read:

Subd. 1a.

Estates subject to claims.

(a) If a person receives any medical assistance
hereunder, on the person's death, if single, or on the death of the survivor of a married
couple, either or both of whom received medical assistance, or as otherwise provided
for in this section, the total amount paid for medical assistance rendered for the person
and spouse shall be filed as a claim against the estate of the person or the estate of the
surviving spouse in the court having jurisdiction to probate the estate or to issue a decree
of descent according to sections 525.31 to 525.313.

(b) For the purposes of this section, the person's estate must consist of:

(1) the person's probate estate;

(2) all of the person's interests or proceeds of those interests in real property the
person owned as a life tenant or as a joint tenant with a right of survivorship at the time of
the person's death;

(3) all of the person's interests or proceeds of those interests in securities the person
owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
of the person's death, to the extent the interests or proceeds of those interests become part
of the probate estate under section 524.6-307;

(4) all of the person's interests in joint accounts, multiple-party accounts, and
pay-on-death accounts, brokerage accounts, investment accounts, or the proceeds of
those accounts, as provided under sections 524.6-201 to 524.6-214 at the time of the
person's death to the extent the interests become part of the probate estate under section
524.6-207; and

(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
living trust, or other arrangements.

(c) For the purpose of this section and recovery in a surviving spouse's estate for
medical assistance paid for a predeceased spouse, the estate must consist of all of the legal
title and interests the deceased individual's predeceased spouse had in jointly owned or
marital property at the time of the spouse's death, as defined in subdivision 2b, and the
proceeds of those interests, that passed to the deceased individual or another individual, a
survivor, an heir, or an assign of the predeceased spouse through a joint tenancy, tenancy
in common, survivorship, life estate, living trust, or other arrangement. A deceased
recipient who, at death, owned the property jointly with the surviving spouse shall have
an interest in the entire property.

(d) For the purpose of recovery in a single person's estate or the estate of a survivor
of a married couple, "other arrangement" includes any other means by which title to all or
any part of the jointly owned or marital property or interest passed from the predeceased
spouse to another including, but not limited to, transfers between spouses which are
permitted, prohibited, or penalized for purposes of medical assistance.

(e) A claim shall be filed if medical assistance was rendered for either or both
persons under one of the following circumstances:

(1) deleted text begin the person was over 55 years of age, and received services under this chapter;
deleted text end

deleted text begin (2) deleted text end the person resided in a medical institution for six months or longer, received
services under this chapter, and, at the time of institutionalization or application for
medical assistance, whichever is later, the person could not have reasonably been expected
to be discharged and returned home, as certified in writing by the person's treating
physician. For purposes of this section only, a "medical institution" means a skilled
nursing facility, intermediate care facility, intermediate care facility for persons with
developmental disabilities, nursing facility, or inpatient hospital; or

deleted text begin (3) deleted text end new text begin (2) new text end the person received general assistance medical care services under new text begin the
program formerly codified under new text end chapter 256D.

(f) The claim shall be considered an expense of the last illness of the decedent for
the purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a
state or county agency with a claim under this section must be a creditor under section
524.6-307. Any statute of limitations that purports to limit any county agency or the state
agency, or both, to recover for medical assistance granted hereunder shall not apply to any
claim made hereunder for reimbursement for any medical assistance granted hereunder.
Notice of the claim shall be given to all heirs and devisees of the decedent, and to other
persons with an ownership interest in the real property owned by the decedent at the time
of the decedent's death, whose identity can be ascertained with reasonable diligence. The
notice must include procedures and instructions for making an application for a hardship
waiver under subdivision 5; time frames for submitting an application and determination;
and information regarding appeal rights and procedures. Counties are entitled to one-half
of the nonfederal share of medical assistance collections from estates that are directly
attributable to county effort. Counties are entitled to ten percent of the collections for
alternative care directly attributable to county effort.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive from January 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2014, section 256B.15, subdivision 1e, is amended to read:

Subd. 1e.

Full or partial release of notice.

(a) The claimant may fully or partially
release the notice and the lien arising out of the notice of record in the real estate records
where the notice is filed or recorded at any time. The claimant may give a full or partial
release to extinguish any life estates or joint tenancy interests which are or may be
continued under this section or whose existence or nonexistence may create a cloud on the
title to real property at any time whether or not a notice has been filed. The recorder or
registrar of titles shall accept the release for recording or filing. If the release is a partial
release, it must include a legal description of the property being released.

(b) At any time, the claimant may, at the claimant's discretion, wholly or partially
release, subordinate, modify, or amend the recorded notice and the lien arising out of
the notice.

new text begin (c) The claimant must fully release each notice of potential claim and the lien arising
out of the notice for each individual age 55 to 64 who receives services, other than
institutional services, and who is eligible for medical assistance based on the eligibility
category established by section 256B.056, subdivision 1a, paragraph (b), clause (1),
item (v).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive from January 1, 2014.
new text end

Sec. 3.

Minnesota Statutes 2014, section 256B.15, subdivision 2, is amended to read:

Subd. 2.

Limitations on claims.

The claim shall include only the total amount of
medical assistance rendered deleted text begin after age 55 or deleted text end during a period of institutionalization described
in subdivision 1a, paragraph (e), and the total amount of general assistance medical care
rendered new text begin under the program formerly codified under chapter 256D new text end , and shall not include
interest. Claims that have been allowed but not paid shall bear interest according to section
524.3-806, paragraph (d). A claim against the estate of a surviving spouse who did not
receive medical assistance, for medical assistance rendered for the predeceased spouse,
shall be payable from the full value of all of the predeceased spouse's assets and interests
which are part of the surviving spouse's estate under subdivisions 1a and 2b. Recovery of
medical assistance expenses in the nonrecipient surviving spouse's estate is limited to the
value of the assets of the estate that were marital property or jointly owned property at any
time during the marriage. The claim is not payable from the value of assets or proceeds of
assets in the estate attributable to a predeceased spouse whom the individual married after
the death of the predeceased recipient spouse for whom the claim is filed or from assets
and the proceeds of assets in the estate which the nonrecipient decedent spouse acquired
with assets which were not marital property or jointly owned property after the death of
the predeceased recipient spouse. Claims for alternative care shall be net of all premiums
paid under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be
limited to services provided on or after July 1, 2003. Claims against marital property shall
be limited to claims against recipients who died on or after July 1, 2009.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive from January 1, 2014.
new text end

Sec. 4.

Minnesota Statutes 2014, section 256B.15, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Reimbursement required. new text end

new text begin The commissioner must reimburse the estate
of a medical assistance recipient the amount of any recovery made from the estate of an
individual who was age 55 to 64, received medical assistance for services other than
institutional services, and was eligible for medical assistance based on the eligibility
category established by section 256B.056, subdivision 1a, paragraph (b), clause (1),
item (v).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive from January 1, 2014.
new text end