HF 1063

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 08:49pm

A bill for an act
relating to human services; changing eligibility requirements for medical
assistance and MinnesotaCare; amending Minnesota Statutes 2012, section
256B.056, subdivisions 3, 3c, as amended.

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

Section 1.

Minnesota Statutes 2012, section 256B.056, subdivision 3, is amended to
read:

Subd. 3.

Asset limitations for individuals and families.

(a) To be eligible for
medical assistance, a person must not individually own more than $3,000 in assets, or if a
member of a household with two family members, husband and wife, or parent and child,
the household must not own more than $6,000 in assets, plus $200 for each additional
legal dependent. In addition to these maximum amounts, an eligible individual or family
may accrue interest on these amounts, but they must be reduced to the maximum at the
time of an eligibility redetermination. The accumulation of the clothing and personal
needs allowance according to section 256B.35 must also be reduced to the maximum at
the time of the eligibility redetermination. The value of assets that are not considered in
determining eligibility for medical assistance is the value of those assets excluded under
the supplemental security income program for aged, blind, and disabled persons, with
the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business that the local agency determines
are necessary to the person's ability to earn an income are not considered new text begin , except that
capital and operating assets used for personal expenses including, but not limited to,
mortgage payments, utility payments, motor vehicle payments, and grocery payments paid
out of a business account shall be considered earned income to the household new text end ;

(3) motor vehicles are excluded to the same extent excluded by the supplemental
security income program;

(4) assets designated as burial expenses are excluded to the same extent excluded by
the supplemental security income program. Burial expenses funded by annuity contracts
or life insurance policies must irrevocably designate the individual's estate as contingent
beneficiary to the extent proceeds are not used for payment of selected burial expenses;

(5) for a person who no longer qualifies as an employed person with a disability due
to loss of earnings, assets allowed while eligible for medical assistance under section
256B.057, subdivision 9, are not considered for 12 months, beginning with the first month
of ineligibility as an employed person with a disability, to the extent that the person's total
assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph (d);

(6) when a person enrolled in medical assistance under section 256B.057, subdivision
9, is age 65 or older and has been enrolled during each of the 24 consecutive months
before the person's 65th birthday, the assets owned by the person and the person's spouse
must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph (d),
when determining eligibility for medical assistance under section 256B.055, subdivision
7. The income of a spouse of a person enrolled in medical assistance under section
256B.057, subdivision 9, during each of the 24 consecutive months before the person's
65th birthday must be disregarded when determining eligibility for medical assistance
under section 256B.055, subdivision 7. Persons eligible under this clause are not subject to
the provisions in section 256B.059. A person whose 65th birthday occurs in 2012 or 2013
is required to have qualified for medical assistance under section 256B.057, subdivision 9,
prior to age 65 for at least 20 months in the 24 months prior to reaching age 65; and

(7) effective July 1, 2009, certain assets owned by American Indians are excluded as
required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. For purposes of this clause, an American Indian is any person who meets the
definition of Indian according to Code of Federal Regulations, title 42, section 447.50.

new text begin The assets specified in clauses (1) to (4) must be disclosed to the local agency at the
time of application and at the time of an eligibility redetermination, and must be verified
upon request of the local agency.
new text end

(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision
15.

Sec. 2.

Minnesota Statutes 2012, section 256B.056, subdivision 3c, as amended by
Laws 2013, chapter 1, section 4, is amended to read:

Subd. 3c.

Asset limitations for families and children.

(a) A household of two or
more persons must not own more than $20,000 in total net assets, and a household of one
person must not own more than $10,000 in total net assets. In addition to these maximum
amounts, an eligible individual or family may accrue interest on these amounts, but they
must be reduced to the maximum at the time of an eligibility redetermination. The value of
assets that are not considered in determining eligibility for medical assistance for families
and children is the value of those assets excluded under the AFDC state plan as of July 16,
1996, as required by the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (PRWORA), Public Law 104-193, with the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business up to $200,000 are not
considered, except that deleted text begin a bank account that contains personal income or assets, or is
used to pay personal expenses, is not considered a capital or operating asset of a trade or
business deleted text end new text begin capital and operating assets used for personal expenses including, but not limited
to, mortgage payments, utility payments, motor vehicle payments, and grocery payments
paid out of a business account shall be considered earned income to the household new text end ;

(3) one motor vehicle is excluded for each person of legal driving age who is
employed or seeking employment;

(4) assets designated as burial expenses are excluded to the same extent they are
excluded by the Supplemental Security Income program;

(5) court-ordered settlements up to $10,000 are not considered;

(6) individual retirement accounts and funds are not considered;

(7) assets owned by children are not considered; and

(8) effective July 1, 2009, certain assets owned by American Indians are excluded as
required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. For purposes of this clause, an American Indian is any person who meets the
definition of Indian according to Code of Federal Regulations, title 42, section 447.50.

The assets specified in deleted text begin clause (2) deleted text end new text begin clauses (1) to (7) new text end must be disclosed to the local agency
at the time of application and at the time of an eligibility redetermination, and must be
verified upon request of the local agency.

(b) Beginning January 1, 2014, this subdivision applies only to parents and caretaker
relatives who qualify for medical assistance under subdivision 5.