Minnesota Legislature
SF 1208
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:19am
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A bill for an act
relating to human services; modifying provisions governing medical assistance
claims and liens; amending Minnesota Statutes 2008, sections 256B.15,
subdivisions 1, 1a, 2; 514.983, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 256B.15, subdivision 1, is amended to read:
Subdivision 1.
Policy and applicability.
(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:
(1) subdivisions 1c to 1k shall not apply to claims arising under this section which
are presented under section 525.313;
(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;
(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;
(4) all laws, rules, and regulations governing or involved with a recovery of medical
assistance shall be liberally construed to accomplish their intended purposes;
(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
(6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancynew text begin
or life estate new text end interests in real property after the recipient's death do not apply to deleted text begin adeleted text end new text begin the
recipient's new text end homestead deleted text begin owned of record, on the date the recipient dies, by the recipient and
the recipient's spouse as joint tenants with a right of survivorshipdeleted text end new text begin except as provided in
this clause. If the recipient and another person are occupants of the recipient's homestead
on the date of the recipient's death and if the property would qualify as the surviving
occupant's homestead following the recipient's death as a result of the surviving occupant's
continued occupancy of the premises and ownership of the property by reason of devise,
descent, or operation of the surviving occupant's other ownership of the property at the
time of the recipient's death, none of the provisions of subdivisions 1c to 1k continuing a
life estate or joint tenancy interest owned by the recipient at the time of death apply if
the surviving occupant is the recipient's spouse. If the surviving occupant is someone
other than the recipient's spouse, the joint tenancy or life estate is continued as provided
in subdivisions 1c to 1k, but no recovery against the interest as a result of any medical
assistance claim or lien may be made while the surviving occupant remains in actual and
continuous physical occupancy of the propertynew text end . Homestead new text begin of the recipient new text end means the real
property occupied by the deleted text begin surviving joint tenant spouse as their sole residencedeleted text end new text begin recipient
new text end on the date the recipient dies and classified and taxed new text begin at least in part new text end to the recipient deleted text begin and
surviving joint tenant spousedeleted text end as homestead property for property tax purposes in the
calendar year in which the recipient dies. new text begin "Homestead of a surviving occupant" means
the same real property as the recipient's homestead if the surviving occupant continues to
actually physically occupy the property and the property would qualify as the surviving
occupant's homestead if proper application for homestead property tax treatment is made.
new text end For purposes of this exemption, real property the recipient and deleted text begin theirdeleted text end new text begin a new text end surviving deleted text begin joint
tenant spousedeleted text end new text begin occupant new text end purchase solely with the proceeds from the sale of deleted text begin theirdeleted text end new text begin a new text end prior
homestead, deleted text begin owndeleted text end new text begin are owners new text end of record as deleted text begin joint tenantsdeleted text end new text begin co-ownersnew text end , and deleted text begin qualifydeleted text end new text begin qualifies new text end 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 deleted text begin their surviving joint tenant spousedeleted text end new text begin the co-owner new text end as new text begin fully new text end homestead
property in the calendar year in which the recipient dies. The surviving deleted text begin spousedeleted text end new text begin occupantnew text end ,
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 statesnew text begin and
a registrar of titles may rely on the facts stated in the affidavit to determine whether a
life estate or joint tenancy is continued under the provisions of this section. Continuous
physical occupancy of the homestead is not lost by reason of temporary absences from
the property, provided the occupant intends to return and the occupant claims no other
homestead or domicile in other real propertynew text end .
(b) 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 and alternative care for nonmedical assistance recipients under section 256B.0913.
(c) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j,
related to the continuation of a recipient's life estate or joint tenancy interests in real
property after the recipient's death for the purpose of recovering medical assistance, are
effective only for life estates and joint tenancy interests established on or after August 1,
2003. For purposes of this paragraph, medical assistance does not include alternative care.
Sec. 2.
Minnesota Statutes 2008, 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
couplenew text begin or a surviving occupant of the recipient's homestead as permitted under subdivision
1, clause (6)new text end , either or both of whom received medical assistance, or as otherwise provided
for in this section, the total amount paid for medical assistance rendered for the person and
spouse new text begin or the surviving occupant new text end shall be filed as a claim against the estate of the person
or the estate of the surviving spousenew text begin or occupant new text end 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:
deleted text begin (a)deleted text end new text begin (1)new text end the person was over 55 years of age, and received services under this chapter;
deleted text begin (b)deleted text end new text begin (2)new text end the person resided in a medical institution for six months or longer, received
services under this chapter, 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
developmental disabilities, nursing facility, or inpatient hospital; or
deleted text begin (c)deleted text end new text begin (3)new text end 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
decedentnew text begin , and to those persons with other ownership interests in the real property owned
by the decedent at the time of the decedent's death, new text end 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. Counties are entitled to ten
percent of the collections for alternative care directly attributable to county effort.
Sec. 3.
Minnesota Statutes 2008, 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 deleted text begin (b)deleted text end new text begin (2)new text end , 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 deleted text begin at any time during
the marriagedeleted text end . new text begin A claim against a surviving occupant of the recipient's homestead or the
occupant's estate is limited to the value of the decedent's interest in the homestead at the
time of the decedent's death. new text end 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.
Sec. 4.
Minnesota Statutes 2008, section 514.983, subdivision 2, is amended to read:
Subd. 2.
Homestead property.
(a) A medical assistance lien may not be enforced
against homestead property of the medical assistance recipient or the spousenew text begin or of a joint
tenant, tenant in common, or life estate tenant new text end while it remains the lawful residence of the
medical assistance recipient's spousenew text begin , joint tenant, tenant in common, or life estate tenantnew text end .
(b) A medical assistance lien remains enforceable as provided in sections 514.980 to
514.985, notwithstanding any law limiting the enforceability of a judgment.