1.1 	A bill for an act
1.2 	relating to human services; modifying requirements for the medical assistance 
1.3 	spenddown;amending Minnesota Statutes 2010, section 256B.056, subdivision 
1.4 	5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 256B.056, subdivision 5, is amended to 
1.7 	read:
1.8 		Subd. 5.Excess income. A person who has excess income is eligible for medical 
1.9 	assistance if the person has expenses for medical care that are more than the amount of the 
1.10 	person's excess income, computed by deducting incurred medical expenses from the excess 
1.11 	income to reduce the excess to the income standard specified in subdivision 5c. The person 
1.12 	shall elect to have the medical expenses deducted at the beginning of a one-month budget 
1.13 	period or at the beginning of a six-month budget period. The commissioner shall allow
1.14 	require persons eligible for assistance on a recurring one-month spenddown basis under 
1.15 	this subdivision to elect to pay the monthly spenddown amount in advance of the month 
1.16 	of eligibility to the state agency in order to maintain eligibility on a continuous basis. If 
1.17 	the recipient does not pay the spenddown amount on or before the 20th of the month, the 
1.18 	recipient is ineligible for this option for the following month. The local agency shall code 
1.19 	the Medicaid Management Information System (MMIS) to indicate that the recipient 
1.20 	has elected this option is paying the monthly spenddown in advance. The state agency 
1.21 	shall convey recipient eligibility information relative to the collection of the spenddown to 
1.22 	providers through the Electronic Verification System (EVS). A recipient electing making
1.23 	advance payment must pay the state agency the monthly spenddown amount on or before 
1.24 	the 20th of the month in order to be eligible for this option in the following month.

2.1 	EFFECTIVE DATE. This section is effective July 1, 2012, or upon any necessary 
2.2 	federal approval, whichever is later.

2.3 	Sec. 2. FEDERAL WAIVERS.
 2.4 	The commissioner shall seek any federal waivers and approvals necessary to 
2.5 	implement the changes to the medical assistance spenddown required by the amendments 
2.6 	to Minnesota Statutes, section 256B.056, subdivision 5.