HF 1370

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:50am

A bill for an act
relating to human services; changing eligibility requirements for medical
assistance and MinnesotaCare; amending Minnesota Statutes 2008, sections
256B.056, subdivisions 3, 3c; 256L.17, subdivision 3.

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

Section 1.

Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to
read:

Subd. 3.

Asset limitations for individuals and families.

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 deleted text begin ; deleted text end 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; and

(5) effective upon federal approval, 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 (c).

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

Sec. 2.

Minnesota Statutes 2008, section 256B.056, subdivision 3c, is amended to read:

Subd. 3c.

Asset limitations for families and children.

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

(4) one burial plot and all other burial expenses equal to the supplemental security
income program asset limit are not considered for each individual;

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

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

(7) assets owned by children are not considered.

new text begin The assets specified in clauses (1) to (7) 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

Sec. 3.

Minnesota Statutes 2008, section 256L.17, subdivision 3, is amended to read:

Subd. 3.

Documentation.

(a) The commissioner of human services shall require
individuals and families, at the time of application or renewal, to indicate on a deleted text begin checkoff deleted text end
form developed by the commissioner whether they satisfy the MinnesotaCare asset
requirement.

(b) The commissioner may require individuals and families to provide any
information the commissioner determines necessary to verify compliance with the asset
requirement, if the commissioner determines that there is reason to believe that an
individual or family has assets that exceed the program limit.