SF 540

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; authorizing a long-term
care partnership program; modifying medical assistance
eligibility requirements under certain circumstances;
defining approved long-term care insurance policies;
limiting medical assistance estate recovery under
certain circumstances; providing implementation
options; proposing coding for new law in Minnesota
Statutes, chapter 256B.

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

Section 1.

new text begin [256B.0571] LONG-TERM CARE PARTNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this
section, the following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Home care service. new text end

new text begin "Home care service" means
care described in section 144A.43.
new text end

new text begin Subd. 3. new text end

new text begin Long-term care insurance. new text end

new text begin "Long-term care
insurance" means a policy described in section 62S.01.
new text end

new text begin Subd. 4. new text end

new text begin Medical assistance. new text end

new text begin "Medical assistance" means
the program of medical assistance established under section
256B.01.
new text end

new text begin Subd. 5. new text end

new text begin Nursing home. new text end

new text begin "Nursing home" means a nursing
home as described in section 144A.01.
new text end

new text begin Subd. 6. new text end

new text begin Partnership policy. new text end

new text begin "Partnership policy" means
a long-term care insurance policy that meets the requirements
under subdivision 10, regardless of when the policy was first
issued.
new text end

new text begin Subd. 7. new text end

new text begin Partnership program. new text end

new text begin "Partnership program"
means the Minnesota partnership for long-term care program
established under this section.
new text end

new text begin Subd. 8. new text end

new text begin Program established. new text end

new text begin (a) The commissioner, in
cooperation with the commissioner of commerce, shall establish
the Minnesota partnership for long-term care program to provide
for the financing of long-term care through a combination of
private insurance and medical assistance.
new text end

new text begin (b) An individual who meets the requirements in this
paragraph is eligible to participate in the partnership
program. The individual must:
new text end

new text begin (1) be a Minnesota resident;
new text end

new text begin (2) purchase a partnership policy that is delivered, issued
for delivery, or renewed on or after the effective date of this
section, and maintain the partnership policy in effect
throughout the period of participation in the partnership
program; and
new text end

new text begin (3) exhaust the minimum benefits under the partnership
policy as described in this section. Benefits received under a
long-term care insurance policy before the effective date of
this section do not count toward the exhaustion of benefits
required in this subdivision.
new text end

new text begin Subd. 9. new text end

new text begin Medical assistance eligibility. new text end

new text begin (a) Upon
application of an individual who meets the requirements
described in subdivision 8, the commissioner shall determine the
individual's eligibility for medical assistance according to
paragraphs (b) and (c).
new text end

new text begin (b) After disregarding financial assets exempted under
medical assistance eligibility requirements, the commissioner
shall disregard an additional amount of financial assets equal
to the dollar amount of coverage utilized under the partnership
policy.
new text end

new text begin (c) The commissioner shall consider the individual's income
according to medical assistance eligibility requirements.
new text end

new text begin Subd. 10. new text end

new text begin Approved policies. new text end

new text begin (a) A partnership policy
must meet all of the requirements in paragraphs (b) to (e).
new text end

new text begin (b) A partnership policy must satisfy the requirements of
chapter 62S.
new text end

new text begin (c) Minimum daily benefits shall be $130 for nursing home
care or $65 for home care. These minimum daily benefit amounts
shall be adjusted by the commissioner on October 1 of each year
by a percentage equal to the inflation protection feature
described in section 62S.23, subdivision 1, clause (1).
Adjusted minimum daily benefit amounts shall be rounded to the
nearest whole dollar.
new text end

new text begin (d) A partnership policy must offer an elimination period
of not more than 100 days for an adjusted premium.
new text end

new text begin (e) A partnership policy must satisfy the requirements
established by the commissioner of human services under
subdivision 12.
new text end

new text begin Subd. 11. new text end

new text begin Limitations on estate recovery. new text end

new text begin For an
individual determined eligible for medical assistance under
subdivision 9, the state shall limit recovery under the
provisions of section 256B.15 against the estate of the
individual or individual's spouse for medical assistance
benefits received by that individual to an amount that exceeds
the dollar amount of coverage utilized under the partnership
policy.
new text end

new text begin Subd. 12. new text end

new text begin Implementation. new text end

new text begin (a) If federal law is amended
or a federal waiver is granted to permit implementation of this
section, the commissioner, in consultation with the commissioner
of commerce, may alter the requirements of subdivision 10,
paragraphs (c) and (d), and may establish additional
requirements for approved policies in order to conform with
federal law or waiver authority. In establishing these
requirements, the commissioner shall seek to maximize purchase
of qualifying policies by Minnesota residents while controlling
medical assistance costs.
new text end

new text begin (b) The commissioner is authorized to suspend
implementation of this section until the next session of the
legislature if the commissioner, in consultation with the
commissioner of commerce, determines that the federal
legislation or federal waiver authorizing a partnership program
in Minnesota is likely to impose substantial unforeseen costs on
the state budget.
new text end

new text begin (c) The commissioner must take action under paragraph (a)
or (b) within 45 days of final federal action authorizing a
partnership policy in Minnesota.
new text end

new text begin (d) The commissioner must notify the appropriate
legislative committees of action taken under this subdivision
within 50 days of final federal action authorizing a partnership
policy in Minnesota.
new text end

new text begin (e) The commissioner must publish a notice in the State
Register of implementation decisions made under this subdivision
as soon as practicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) If any provision of this section is
prohibited by federal law, no provision shall become effective
until federal law is changed to permit its full implementation.
The commissioner of human services shall notify the revisor of
statutes when federal law is enacted or other federal approval
is received and publish a notice in the State Register. The
commissioner must include the notice in the first State Register
published after the effective date of the federal changes.
new text end

new text begin (b) If federal law is changed to permit a waiver of any
provisions prohibited by federal law, the commissioner of human
services shall apply to the federal government for a waiver of
those prohibitions or other federal authority, and that
provision shall become effective upon receipt of a federal
waiver or other federal approval, notification to the revisor of
statutes, and publication of a notice in the State Register to
that effect.
new text end