HF 2174

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; modifying medical 
  1.3             assistance estate recovery provisions; eliminating 
  1.4             recoveries for alternative care costs; appropriating 
  1.5             money; amending Minnesota Statutes 2003 Supplement, 
  1.6             sections 256B.15, subdivisions 1, 1a, 2; 524.3-805; 
  1.7             repealing Minnesota Statutes 2003 Supplement, sections 
  1.8             514.991; 514.992; 514.993; 514.994; 514.995.  
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.11  256B.15, subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [POLICY, APPLICABILITY, PURPOSE, AND 
  1.13  CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
  1.14  that individuals or couples, either or both of whom participate 
  1.15  in the medical assistance program, use their own assets to pay 
  1.16  their share of the total cost of their care during or after 
  1.17  their enrollment in the program according to applicable federal 
  1.18  law and the laws of this state.  The following provisions apply: 
  1.19     (1) subdivisions 1c to 1k shall not apply to claims arising 
  1.20  under this section which are presented under section 525.313; 
  1.21     (2) the provisions of subdivisions 1c to 1k expanding the 
  1.22  interests included in an estate for purposes of recovery under 
  1.23  this section give effect to the provisions of United States 
  1.24  Code, title 42, section 1396p, governing recoveries, but do not 
  1.25  give rise to any express or implied liens in favor of any other 
  1.26  parties not named in these provisions; 
  1.27     (3) the continuation of a recipient's life estate or joint 
  2.1   tenancy interest in real property after the recipient's death 
  2.2   for the purpose of recovering medical assistance under this 
  2.3   section modifies common law principles holding that these 
  2.4   interests terminate on the death of the holder; 
  2.5      (4) all laws, rules, and regulations governing or involved 
  2.6   with a recovery of medical assistance shall be liberally 
  2.7   construed to accomplish their intended purposes; 
  2.8      (5) a deceased recipient's life estate and joint tenancy 
  2.9   interests continued under this section shall be owned by the 
  2.10  remaindermen or surviving joint tenants as their interests may 
  2.11  appear on the date of the recipient's death.  They shall not be 
  2.12  merged into the remainder interest or the interests of the 
  2.13  surviving joint tenants by reason of ownership.  They shall be 
  2.14  subject to the provisions of this section.  Any conveyance, 
  2.15  transfer, sale, assignment, or encumbrance by a remainderman, a 
  2.16  surviving joint tenant, or their heirs, successors, and assigns 
  2.17  shall be deemed to include all of their interest in the deceased 
  2.18  recipient's life estate or joint tenancy interest continued 
  2.19  under this section; and 
  2.20     (6) the provisions of subdivisions 1c to 1k continuing a 
  2.21  recipient's joint tenancy interests in real property after the 
  2.22  recipient's death do not apply to a homestead owned of record, 
  2.23  on the date the recipient dies, by the recipient and the 
  2.24  recipient's spouse as joint tenants with a right of 
  2.25  survivorship.  Homestead means the real property occupied by the 
  2.26  surviving joint tenant spouse as their sole residence on the 
  2.27  date the recipient dies and classified and taxed to the 
  2.28  recipient and surviving joint tenant spouse as homestead 
  2.29  property for property tax purposes in the calendar year in which 
  2.30  the recipient dies.  For purposes of this exemption, real 
  2.31  property the recipient and their surviving joint tenant spouse 
  2.32  purchase solely with the proceeds from the sale of their prior 
  2.33  homestead, own of record as joint tenants, and qualify as 
  2.34  homestead property under section 273.124 in the calendar year in 
  2.35  which the recipient dies and prior to the recipient's death 
  2.36  shall be deemed to be real property classified and taxed to the 
  3.1   recipient and their surviving joint tenant spouse as homestead 
  3.2   property in the calendar year in which the recipient dies.  The 
  3.3   surviving spouse, or any person with personal knowledge of the 
  3.4   facts, may provide an affidavit describing the homestead 
  3.5   property affected by this clause and stating facts showing 
  3.6   compliance with this clause.  The affidavit shall be prima facie 
  3.7   evidence of the facts it states. 
  3.8      (b) For purposes of this section, "medical assistance" 
  3.9   includes the medical assistance program under this chapter and 
  3.10  the general assistance medical care program under chapter 256D 
  3.11  and but does not include the alternative care program for 
  3.12  nonmedical assistance recipients under section 256B.0913. 
  3.13     [EFFECTIVE DATE.] This section is effective retroactive 
  3.14  from July 1, 2003. 
  3.15     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  3.16  256B.15, subdivision 1a, is amended to read: 
  3.17     Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
  3.18  receives any medical assistance hereunder, on the person's 
  3.19  death, if single, or on the death of the survivor of a married 
  3.20  couple, either or both of whom received medical assistance, or 
  3.21  as otherwise provided for in this section, the total amount paid 
  3.22  for medical assistance rendered for the person and spouse shall 
  3.23  be filed as a claim against the estate of the person or the 
  3.24  estate of the surviving spouse in the court having jurisdiction 
  3.25  to probate the estate or to issue a decree of descent according 
  3.26  to sections 525.31 to 525.313.  
  3.27     A claim shall be filed if medical assistance was rendered 
  3.28  for either or both persons under one of the following 
  3.29  circumstances: 
  3.30     (a) the person was over 55 years of age, and received 
  3.31  services under this chapter, excluding alternative care; 
  3.32     (b) the person resided in a medical institution for six 
  3.33  months or longer, received services under this chapter, 
  3.34  excluding alternative care, and, at the time of 
  3.35  institutionalization or application for medical assistance, 
  3.36  whichever is later, the person could not have reasonably been 
  4.1   expected to be discharged and returned home, as certified in 
  4.2   writing by the person's treating physician.  For purposes of 
  4.3   this section only, a "medical institution" means a skilled 
  4.4   nursing facility, intermediate care facility, intermediate care 
  4.5   facility for persons with mental retardation, nursing facility, 
  4.6   or inpatient hospital; or 
  4.7      (c) the person received general assistance medical care 
  4.8   services under chapter 256D.  
  4.9      The claim shall be considered an expense of the last 
  4.10  illness of the decedent for the purpose of section 524.3-805.  
  4.11  Any statute of limitations that purports to limit any county 
  4.12  agency or the state agency, or both, to recover for medical 
  4.13  assistance granted hereunder shall not apply to any claim made 
  4.14  hereunder for reimbursement for any medical assistance granted 
  4.15  hereunder.  Notice of the claim shall be given to all heirs and 
  4.16  devisees of the decedent whose identity can be ascertained with 
  4.17  reasonable diligence.  The notice must include procedures and 
  4.18  instructions for making an application for a hardship waiver 
  4.19  under subdivision 5; time frames for submitting an application 
  4.20  and determination; and information regarding appeal rights and 
  4.21  procedures.  Counties are entitled to one-half of the nonfederal 
  4.22  share of medical assistance collections from estates that are 
  4.23  directly attributable to county effort.  Counties are entitled 
  4.24  to ten percent of the collections for alternative care directly 
  4.25  attributable to county effort. 
  4.26     [EFFECTIVE DATE.] This section is effective retroactive 
  4.27  from July 1, 2003. 
  4.28     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  4.29  256B.15, subdivision 2, is amended to read: 
  4.30     Subd. 2.  [LIMITATIONS ON CLAIMS.] The claim shall include 
  4.31  only the total amount of medical assistance rendered after age 
  4.32  55 or during a period of institutionalization described in 
  4.33  subdivision 1a, clause (b), and the total amount of general 
  4.34  assistance medical care rendered, and shall not include 
  4.35  interest.  Claims that have been allowed but not paid shall bear 
  4.36  interest according to section 524.3-806, paragraph (d).  A claim 
  5.1   against the estate of a surviving spouse who did not receive 
  5.2   medical assistance, for medical assistance rendered for the 
  5.3   predeceased spouse, is limited to the value of the assets of the 
  5.4   estate that were marital property or jointly owned property at 
  5.5   any time during the marriage.  Claims for alternative care shall 
  5.6   be net of all premiums paid under section 256B.0913, subdivision 
  5.7   12, on or after July 1, 2003, and shall be limited to services 
  5.8   provided on or after July 1, 2003. 
  5.9      [EFFECTIVE DATE.] This section is effective retroactive 
  5.10  from July 1, 2003. 
  5.11     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  5.12  524.3-805, is amended to read: 
  5.13     524.3-805 [CLASSIFICATION OF CLAIMS.] 
  5.14     (a) If the applicable assets of the estate are insufficient 
  5.15  to pay all claims in full, the personal representative shall 
  5.16  make payment in the following order: 
  5.17     (1) costs and expenses of administration; 
  5.18     (2) reasonable funeral expenses; 
  5.19     (3) debts and taxes with preference under federal law; 
  5.20     (4) reasonable and necessary medical, hospital, or nursing 
  5.21  home expenses of the last illness of the decedent, including 
  5.22  compensation of persons attending the decedent, a claim filed 
  5.23  under section 256B.15 for recovery of expenditures for 
  5.24  alternative care for nonmedical assistance recipients under 
  5.25  section 256B.0913, and including a claim filed pursuant to 
  5.26  section 256B.15; 
  5.27     (5) reasonable and necessary medical, hospital, and nursing 
  5.28  home expenses for the care of the decedent during the year 
  5.29  immediately preceding death; 
  5.30     (6) debts with preference under other laws of this state, 
  5.31  and state taxes; 
  5.32     (7) all other claims. 
  5.33     (b) No preference shall be given in the payment of any 
  5.34  claim over any other claim of the same class, and a claim due 
  5.35  and payable shall not be entitled to a preference over claims 
  5.36  not due, except that if claims for expenses of the last illness 
  6.1   involve only claims filed under section 256B.15 for recovery of 
  6.2   expenditures for alternative care for nonmedical assistance 
  6.3   recipients under section 256B.0913, section 246.53 for costs of 
  6.4   state hospital care and claims filed under section 256B.15, 
  6.5   claims filed to recover expenditures for alternative care for 
  6.6   nonmedical assistance recipients under section 256B.0913 shall 
  6.7   have preference over claims filed under both sections 246.53 and 
  6.8   other claims filed under section 256B.15, and.  Claims filed 
  6.9   under section 246.53 have preference over claims filed under 
  6.10  section 256B.15 for recovery of amounts other than those for 
  6.11  expenditures for alternative care for nonmedical assistance 
  6.12  recipients under section 256B.0913. 
  6.13     [EFFECTIVE DATE.] This section is effective retroactive 
  6.14  from July 1, 2003. 
  6.15     Sec. 5.  [APPROPRIATION.] 
  6.16     $....... is appropriated from the general fund to the 
  6.17  commissioner of human services for the fiscal year beginning 
  6.18  July 1, 2004, for the purposes of sections 1 to 4 and 6.  
  6.19     Sec. 6.  [REPEALER.] 
  6.20     Minnesota Statutes 2003 Supplement, sections 514.991; 
  6.21  514.992; 514.993; 514.994; and 514.995, are repealed retroactive 
  6.22  from July 1, 2003.