HF 9

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/15/2013 06:57pm

A bill for an act
relating to human services; expanding medical assistance eligibility; requiring
the use of modified adjusted gross income and a standard income disregard;
amending Minnesota Statutes 2012, sections 256B.02, by adding a subdivision;
256B.055, by adding a subdivision; 256B.056, subdivisions 1a, 3c, 4.

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

Section 1.

Minnesota Statutes 2012, section 256B.02, is amended by adding a
subdivision to read:

new text begin Subd. 17. new text end

new text begin Affordable Care Act or ACA. new text end

new text begin "Affordable Care Act" or "ACA" means
Public Law 111-148, as amended by the federal Health Care and Education Reconciliation
Act of 2010 (Public Law 111-152), and any amendments to, or regulations or guidance
issued under, those acts.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 256B.055, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Children ages 19 and 20. new text end

new text begin Medical assistance may be paid for children
who are 19 to 20 years of age.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014.
new text end

Sec. 3.

Minnesota Statutes 2012, section 256B.056, subdivision 1a, is amended to read:

Subd. 1a.

Income and assets generally.

new text begin (a)(1) new text end Unless specifically required by
state law or rule or federal law or regulation, the methodologies used in counting income
and assets to determine eligibility for medical assistance for persons whose eligibility
category is based on blindness, disability, or age of 65 or more years, the methodologies
for the supplemental security income program shall be used, except as provided under
subdivision 3, paragraph (a), clause (6).

new text begin (2) new text end Increases in benefits under title II of the Social Security Act shall not be counted
as income for purposes of this subdivision until July 1 of each year. Effective upon federal
approval, for children eligible under section 256B.055, subdivision 12, or for home and
community-based waiver services whose eligibility for medical assistance is determined
without regard to parental income, child support payments, including any payments
made by an obligor in satisfaction of or in addition to a temporary or permanent order
for child support, and Social Security payments are not counted as income. deleted text begin For families
and children, which includes all other eligibility categories, the methodologies under the
state's AFDC plan in effect as of July 16, 1996, as required by the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 104-193,
shall be used, except that effective October 1, 2003, the earned income disregards and
deductions are limited to those in subdivision 1c.
deleted text end

new text begin (b)(1) The modified adjusted gross income methodology as defined in the Affordable
Care Act shall be used for eligibility categories based on:
new text end

new text begin (i) children under age 19 and their parents and relative caretakers as defined in
section 256B.055, subdivision 3a;
new text end

new text begin (ii) children ages 19 to 20 as defined in section 256B.055, subdivision 16;
new text end

new text begin (iii) pregnant women as defined in section 256B.055, subdivision 6;
new text end

new text begin (iv) infants as defined in sections 256B.055, subdivision 10, and 256B.057,
subdivision 8; and
new text end

new text begin (v) adults without children as defined in section 256B.055, subdivision 15.
new text end

For these purposes, a "methodology" does not include an asset or income standard,
or accounting method, or method of determining effective dates.

new text begin (2) For individuals whose income eligibility is determined using the modified
adjusted gross income methodology in clause (1), the commissioner shall subtract from
the individual's modified adjusted gross income an amount equivalent to five percent
of the federal poverty guidelines.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014.
new text end

Sec. 4.

Minnesota Statutes 2012, section 256B.056, subdivision 3c, is amended to read:

Subd. 3c.

Asset limitations for families and children.

new text begin (a) new text end 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, except that a bank account that contains personal income or assets, or is used to
pay personal expenses, is not considered a capital or operating asset of a trade or business;

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

(4) assets designated as burial expenses are excluded to the same extent they are
excluded by the Supplemental Security Income program;

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

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

(7) assets owned by children are not considered; and

(8) effective July 1, 2009, certain assets owned by American Indians are excluded as
required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. For purposes of this clause, an American Indian is any person who meets the
definition of Indian according to Code of Federal Regulations, title 42, section 447.50.

The assets specified in clause (2) 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 begin (b) Beginning January 1, 2014, this subdivision applies only to parents and caretaker
relatives who qualify for medical assistance under subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014.
new text end

Sec. 5.

Minnesota Statutes 2012, section 256B.056, subdivision 4, is amended to read:

Subd. 4.

Income.

(a) To be eligible for medical assistance, a person eligible under
section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of
the federal poverty guidelines. Effective January 1, 2000, and each successive January,
recipients of supplemental security income may have an income up to the supplemental
security income standard in effect on that date.

(b) To be eligible for medical assistance, families and children may have an income
up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996,
AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16,
1996, shall be increased by three percent.

(c) Effective deleted text begin July 1, 2002 deleted text end new text begin January 1, 2014 new text end , to be eligible for medical assistance,
deleted text begin families and children deleted text end new text begin under section 256B.055, subdivision 3a, a parent or caretaker
relative new text end may have an income up to deleted text begin 100 deleted text end new text begin 133 new text end percent of the federal poverty guidelines for
the deleted text begin family deleted text end new text begin household new text end size.

(d) To be eligible for medical assistance under section 256B.055, subdivision 15,
a person may have an income up to deleted text begin 75 deleted text end new text begin 133 new text end percent of federal poverty guidelines for
the deleted text begin family deleted text end new text begin household new text end size.

(e) deleted text begin In computing income to determine eligibility of persons under paragraphs (a) to
(d) who are not residents of long-term care facilities, the commissioner shall disregard
increases in income as required by Public Laws 94-566, section 503; 99-272; and 99-509.
Veterans aid and attendance benefits and Veterans Administration unusual medical
expense payments are considered income to the recipient deleted text end new text begin To be eligible for medical
assistance under section 256B.055, subdivision 16, a child may have an income up to 133
percent of the federal poverty guidelines for the household size new text end .

new text begin (f) In computing income to determine eligibility of persons under paragraphs (a) to
(e) who are not residents of long-term care facilities, the commissioner shall disregard
increases in income as required by Public Laws 94-566, section 503; 99-272; and 99-509.
For persons eligible under paragraph (a), veteran aid and attendance benefits and Veterans
Administration unusual medical expense payments are considered income to the recipient.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014.
new text end

Sec. 6. new text begin TRANSFER.
new text end

new text begin The commissioner of management and budget shall transfer from the health care
access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000
in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal
year 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014.
new text end