HF 66

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; modifying medical
assistance estate recovery provisions; eliminating
recoveries for alternative care costs; removing liens
against life estates and joint tenant interests;
appropriating money; amending Minnesota Statutes 2004,
sections 256B.15, subdivisions 1, 1a, 2, 3, 4;
514.981, subdivision 6; 524.3-805; repealing Minnesota
Statutes 2004, sections 256B.15, subdivisions 1c, 1d,
1e, 1f, 1g, 1h, 1i, 1j, 1k; 514.991; 514.992; 514.993;
514.994; 514.995.

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

Section 1.

Minnesota Statutes 2004, section 256B.15,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin policy, applicability, purpose, and
construction; deleted text end definition.

deleted text begin (a) It is the policy of this state
that individuals or couples, either or both of whom participate
in the medical assistance program, use their own assets to pay
their share of the total cost of their care during or after
their enrollment in the program according to applicable federal
law and the laws of this state. The following provisions apply:
deleted text end

deleted text begin (1) subdivisions 1c to 1k shall not apply to claims arising
under this section which are presented under section 525.313;
deleted text end

deleted text begin (2) the provisions of subdivisions 1c to 1k expanding the
interests included in an estate for purposes of recovery under
this section give effect to the provisions of United States
Code, title 42, section 1396p, governing recoveries, but do not
give rise to any express or implied liens in favor of any other
parties not named in these provisions;
deleted text end

deleted text begin (3) the continuation of a recipient's life estate or joint
tenancy interest in real property after the recipient's death
for the purpose of recovering medical assistance under this
section modifies common law principles holding that these
interests terminate on the death of the holder;
deleted text end

deleted text begin (4) all laws, rules, and regulations governing or involved
with a recovery of medical assistance shall be liberally
construed to accomplish their intended purposes;
deleted text end

deleted text begin (5) a deceased recipient's life estate and joint tenancy
interests continued under this section shall be owned by the
remaindermen or surviving joint tenants as their interests may
appear on the date of the recipient's death. They shall not be
merged into the remainder interest or the interests of the
surviving joint tenants by reason of ownership. They shall be
subject to the provisions of this section. Any conveyance,
transfer, sale, assignment, or encumbrance by a remainderman, a
surviving joint tenant, or their heirs, successors, and assigns
shall be deemed to include all of their interest in the deceased
recipient's life estate or joint tenancy interest continued
under this section; and
deleted text end

deleted text begin (6) the provisions of subdivisions 1c to 1k continuing a
recipient's joint tenancy interests in real property after the
recipient's death do not apply to a homestead owned of record,
on the date the recipient dies, by the recipient and the
recipient's spouse as joint tenants with a right of
survivorship. Homestead means the real property occupied by the
surviving joint tenant spouse as their sole residence on the
date the recipient dies and classified and taxed to the
recipient and surviving joint tenant spouse as homestead
property for property tax purposes in the calendar year in which
the recipient dies. For purposes of this exemption, real
property the recipient and their surviving joint tenant spouse
purchase solely with the proceeds from the sale of their prior
homestead, own of record as joint tenants, and qualify as
homestead property under section 273.124 in the calendar year in
which the recipient dies and prior to the recipient's death
shall be deemed to be real property classified and taxed to the
recipient and their surviving joint tenant spouse as homestead
property in the calendar year in which the recipient dies. The
surviving spouse, or any person with personal knowledge of the
facts, may provide an affidavit describing the homestead
property affected by this clause and stating facts showing
compliance with this clause. The affidavit shall be prima facie
evidence of the facts it states.
deleted text end

deleted text begin (b) deleted text end For purposes of this section, "medical assistance"
includes the medical assistance program under this chapter and
the general assistance medical care program under chapter 256D
deleted text begin and deleted text end new text begin but does not include the new text end alternative care new text begin program new text end for
nonmedical assistance recipients under section 256B.0913.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003.
new text end

Sec. 2.

Minnesota Statutes 2004, section 256B.15,
subdivision 1a, is amended to read:

Subd. 1a.

Estates subject to claims.

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, deleted text begin or
as otherwise provided for in this section, deleted text end 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.

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

(a) the person was over 55 years of age, and received
services under this chapter new text begin , excluding alternative care new text end ;

(b) the person resided in a medical institution for six
months or longer, received services under this chapter new text begin ,
excluding alternative care new text end , 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 mental retardation, nursing facility,
or inpatient hospital; or

(c) the person received general assistance medical care
services under chapter 256D.

The claim shall be considered an expense of the last
illness of the decedent for the purpose of section 524.3-805.
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 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. deleted text begin Counties are entitled
to ten percent of the collections for alternative care directly
attributable to county effort.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003.
new text end

Sec. 3.

Minnesota Statutes 2004, 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 after age
55 or during a period of institutionalization described in
subdivision 1a, clause (b), and the total amount of general
assistance medical care rendered, 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, 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. deleted text begin 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.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003.
new text end

Sec. 4.

Minnesota Statutes 2004, section 256B.15,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin surviving spouse, deleted text end minor, blind, or disabled
children.

If a decedent deleted text begin is survived by a spouse, or deleted text end new text begin who new text end was
single or new text begin who was new text end the surviving spouse of a married couple deleted text begin and
deleted text end is survived by a child who is under age 21 or blind or
permanently and totally disabled according to the supplemental
security income program criteria, deleted text begin a deleted text end new text begin no new text end claim shall be filed
against the estate deleted text begin according to this section deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003.
new text end

Sec. 5.

Minnesota Statutes 2004, section 256B.15,
subdivision 4, is amended to read:

Subd. 4.

Other survivors.

If the decedent who was single
or the surviving spouse of a married couple is survived by one
of the following persons, a claim exists against the estate in
an amount not to exceed the value of the nonhomestead property
included in the estate deleted text begin and the personal representative shall
make, execute, and deliver to the county agency a lien against
the homestead property in the estate for any unpaid balance of
the claim to the claimant as provided under this section deleted text end :

(a) a sibling who resided in the decedent medical
assistance recipient's home at least one year before the
decedent's institutionalization and continuously since the date
of institutionalization; or

(b) a son or daughter or a grandchild who resided in the
decedent medical assistance recipient's home for at least two
years immediately before the parent's or grandparent's
institutionalization and continuously since the date of
institutionalization, and who establishes by a preponderance of
the evidence having provided care to the parent or grandparent
who received medical assistance, that the care was provided
before institutionalization, and that the care permitted the
parent or grandparent to reside at home rather than in an
institution.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003.
new text end

Sec. 6.

Minnesota Statutes 2004, section 514.981,
subdivision 6, is amended to read:

Subd. 6.

Time limits; claim limits deleted text begin ; liens on life estates
and joint tenancies deleted text end .

(a) A medical assistance lien is a lien on
the real property it describes for a period of ten years from
the date it attaches according to section 514.981, subdivision
2, paragraph (a), except as otherwise provided for in sections
514.980 to 514.985. The agency may renew a medical assistance
lien for an additional ten years from the date it would
otherwise expire by recording or filing a certificate of renewal
before the lien expires. The certificate shall be recorded or
filed in the office of the county recorder or registrar of
titles for the county in which the lien is recorded or filed.
The certificate must refer to the recording or filing data for
the medical assistance lien it renews. The certificate need not
be attested, certified, or acknowledged as a condition for
recording or filing. The registrar of titles or the recorder
shall file, record, index, and return the certificate of renewal
in the same manner as provided for medical assistance liens in
section 514.982, subdivision 2.

(b) A medical assistance lien is not enforceable against
the real property of an estate to the extent there is a
determination by a court of competent jurisdiction, or by an
officer of the court designated for that purpose, that there are
insufficient assets in the estate to satisfy the agency's
medical assistance lien in whole or in part because of the
homestead exemption under section 256B.15, subdivision 4, the
rights of the surviving spouse or minor children under section
524.2-403, paragraphs (a) and (b), or claims with a priority
under section 524.3-805, paragraph (a), clauses (1) to (4). For
purposes of this section, the rights of the decedent's adult
children to exempt property under section 524.2-403, paragraph
(b), shall not be considered costs of administration under
section 524.3-805, paragraph (a), clause (1).

deleted text begin (c) Notwithstanding any law or rule to the contrary, the
provisions in clauses (1) to (7) apply if a life estate subject
to a medical assistance lien ends according to its terms, or if
a medical assistance recipient who owns a life estate or any
interest in real property as a joint tenant that is subject to a
medical assistance lien dies.
deleted text end

deleted text begin (1) The medical assistance recipient's life estate or joint
tenancy interest in the real property shall not end upon the
recipient's death but shall merge into the remainder interest or
other interest in real property the medical assistance recipient
owned in joint tenancy with others. The medical assistance lien
shall attach to and run with the remainder or other interest in
the real property to the extent of the medical assistance
recipient's interest in the property at the time of the
recipient's death as determined under this section.
deleted text end

deleted text begin (2) If the medical assistance recipient's interest was a
life estate in real property, the lien shall be a lien against
the portion of the remainder equal to the percentage factor for
the life estate of a person the medical assistance recipient's
age on the date the life estate ended according to its terms or
the date of the medical assistance recipient's death as listed
in the Life Estate Mortality Table in the health care program's
manual.
deleted text end

deleted text begin (3) If the medical assistance recipient owned the interest
in real property in joint tenancy with others, the lien shall be
a lien against the portion of that interest equal to the
fractional interest the medical assistance recipient would have
owned in the jointly owned interest had the medical assistance
recipient and the other owners held title to that interest as
tenants in common on the date the medical assistance recipient
died.
deleted text end

deleted text begin (4) The medical assistance lien shall remain a lien against
the remainder or other jointly owned interest for the length of
time and be renewable as provided in paragraph (a).
deleted text end

deleted text begin (5) Subdivision 5, paragraph (a), clause (4), paragraph
(b), clauses (1) and (2); and subdivision 6, paragraph (b), do
not apply to medical assistance liens which attach to interests
in real property as provided under this subdivision.
deleted text end

deleted text begin (6) The continuation of a medical assistance recipient's
life estate or joint tenancy interest in real property after the
medical assistance recipient's death for the purpose of
recovering medical assistance provided for in sections 514.980
to 514.985 modifies common law principles holding that these
interests terminate on the death of the holder.
deleted text end

deleted text begin (7) Notwithstanding any law or rule to the contrary, no
release, satisfaction, discharge, or affidavit under section
256B.15 shall extinguish or terminate the life estate or joint
tenancy interest of a medical assistance recipient subject to a
lien under sections 514.980 to 514.985 on the date the recipient
dies.
deleted text end

deleted text begin (8) The provisions of clauses (1) to (7) do not apply to a
homestead owned of record, on the date the recipient dies, by
the recipient and the recipient's spouse as joint tenants with a
right of survivorship. Homestead means the real property
occupied by the surviving joint tenant spouse as their sole
residence on the date the recipient dies and classified and
taxed to the recipient and surviving joint tenant spouse as
homestead property for property tax purposes in the calendar
year in which the recipient dies. For purposes of this
exemption, real property the recipient and their surviving joint
tenant spouse purchase solely with the proceeds from the sale of
their prior homestead, own of record as joint tenants, and
qualify as homestead property under section 273.124 in the
calendar year in which the recipient dies and prior to the
recipient's death shall be deemed to be real property classified
and taxed to the recipient and their surviving joint tenant
spouse as homestead property in the calendar year in which the
recipient dies. The surviving spouse, or any person with
personal knowledge of the facts, may provide an affidavit
describing the homestead property affected by this clause and
stating facts showing compliance with this clause. The
affidavit shall be prima facie evidence of the facts it states.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003, and applies to medical assistance liens
recorded or filed on or after that date. new text end

Sec. 7.

Minnesota Statutes 2004, section 524.3-805, is
amended to read:

524.3-805 CLASSIFICATION OF CLAIMS.

(a) If the applicable assets of the estate are insufficient
to pay all claims in full, the personal representative shall
make payment in the following order:

(1) costs and expenses of administration;

(2) reasonable funeral expenses;

(3) debts and taxes with preference under federal law;

(4) reasonable and necessary medical, hospital, or nursing
home expenses of the last illness of the decedent, including
compensation of persons attending the decedent deleted text begin , a claim filed
under section 256B.15 for recovery of expenditures for
alternative care for nonmedical assistance recipients under
section 256B.0913, deleted text end and including a claim filed pursuant to
section 256B.15;

(5) reasonable and necessary medical, hospital, and nursing
home expenses for the care of the decedent during the year
immediately preceding death;

(6) debts with preference under other laws of this state,
and state taxes;

(7) all other claims.

(b) No preference shall be given in the payment of any
claim over any other claim of the same class, and a claim due
and payable shall not be entitled to a preference over claims
not due, except that if claims for expenses of the last illness
involve only claims filed under section deleted text begin 256B.15 for recovery of
expenditures for alternative care for nonmedical assistance
recipients under section 256B.0913, section deleted text end 246.53 for costs of
state hospital care and claims filed under section 256B.15 deleted text begin ,
claims filed to recover expenditures for alternative care for
nonmedical assistance recipients under section 256B.0913 shall
have preference over claims filed under both sections 246.53 and
other claims filed under section 256B.15, and deleted text end new text begin . new text end Claims filed
under section 246.53 have preference over claims filed under
section 256B.15 deleted text begin for recovery of amounts other than those for
expenditures for alternative care for nonmedical assistance
recipients under section 256B.0913 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from July 1, 2003.
new text end

Sec. 8. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the
commissioner of human services for the fiscal year beginning
July 1, 2005, for the purposes of sections 1 to 7 and 9.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, section 256B.15, subdivisions
1c, 1d, 1e, 1f, 1g, 1h, 1i, 1j, and 1k, are repealed
retroactively from July 1, 2003.
new text end

new text begin (b) Minnesota Statutes 2004, sections 514.991; 514.992;
514.993; 514.994; and 514.995, are repealed retroactively from
July 1, 2003.
new text end