1.1                          A bill for an act
  1.2             relating to human services; modifying certain asset 
  1.3             and income requirements for medical assistance; 
  1.4             modifying the eligibility requirements for Minnesota 
  1.5             supplemental aid; amending Minnesota Statutes 1994, 
  1.6             sections 256B.056, subdivision 3, and by adding 
  1.7             subdivisions; and 256D.425, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 256B.056, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
  1.12  assistance, a person must not individually own more than $3,000 
  1.13  in assets, or if a member of a household with two family members 
  1.14  (husband and wife, or parent and child), the household must not 
  1.15  own more than $6,000 in assets, plus $200 for each additional 
  1.16  legal dependent.  In addition to these maximum amounts, an 
  1.17  eligible individual or family may accrue interest on these 
  1.18  amounts, but they must be reduced to the maximum at the time of 
  1.19  an eligibility redetermination.  The accumulation of the 
  1.20  clothing and personal needs allowance pursuant to section 
  1.21  256B.35 must also be reduced to the maximum at the time of the 
  1.22  eligibility redetermination.  The value of assets that are not 
  1.23  considered in determining eligibility for medical assistance is 
  1.24  the value of those assets that are excluded by the aid to 
  1.25  families with dependent children program for families and 
  1.26  children, and the supplemental security income program for aged, 
  2.1   blind, and disabled persons, with the following exceptions: 
  2.2      (a) Household goods and personal effects are not considered.
  2.3      (b) Capital and operating assets of a trade or business 
  2.4   that the local agency determines are necessary to the person's 
  2.5   ability to earn an income are not considered. 
  2.6      (c) Motor vehicles are excluded to the same extent excluded 
  2.7   by the supplemental security income program. 
  2.8      (d) Assets designated as burial expenses are excluded to 
  2.9   the same extent excluded by the supplemental security income 
  2.10  program. 
  2.11     (e) Notwithstanding Minnesota Rules, part 9505.0062, the 
  2.12  value of a life estate shall not be considered an asset for 
  2.13  individuals over the age of 65. 
  2.14     Sec. 2.  Minnesota Statutes 1994, section 256B.056, is 
  2.15  amended by adding a subdivision to read: 
  2.16     Subd. 4a.  [INCOME VERIFICATION.] The local agency shall 
  2.17  not require an income verification form for recipients with 
  2.18  earned income of $65 or less. 
  2.19     Sec. 3.  Minnesota Statutes 1994, section 256B.056, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 5a.  [INDIVIDUALS ON FIXED INCOME; LOW INCOME.] 
  2.22  Notwithstanding Minnesota Rules, part 9505.0065: 
  2.23     (1) recipients of medical assistance who are on a fixed 
  2.24  income, where such income is unvarying in amount and timing of 
  2.25  receipt, shall have their income verified annually; and 
  2.26     (2) recipients of medical assistance who have a very low 
  2.27  and slightly fluctuating income may have their income 
  2.28  anticipated on a semiannual basis. 
  2.29     Sec. 4.  Minnesota Statutes 1994, section 256D.425, 
  2.30  subdivision 2, is amended to read: 
  2.31     Subd. 2.  [RESOURCE STANDARDS.] The resource standards and 
  2.32  restrictions for supplemental aid under this section shall be 
  2.33  those used to determine eligibility for disabled individuals in 
  2.34  the supplemental security income program.  Continued eligibility 
  2.35  for the supplemental security income program is sufficient 
  2.36  verification that an individual has resources within the limits 
  3.1   required by this subdivision.