SF 540

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; authorizing a long-term 
  1.3             care partnership program; modifying medical assistance 
  1.4             eligibility requirements under certain circumstances; 
  1.5             defining approved long-term care insurance policies; 
  1.6             limiting medical assistance estate recovery under 
  1.7             certain circumstances; proposing coding for new law in 
  1.8             Minnesota Statutes, chapter 256B. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [256B.0571] [LONG-TERM CARE PARTNERSHIP.] 
  1.11     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.12  section, the following terms have the meanings given them. 
  1.13     Subd. 2.  [HOME CARE SERVICE.] "Home care service" means 
  1.14  care described in section 144A.43. 
  1.15     Subd. 3.  [LONG-TERM CARE INSURANCE.] "Long-term care 
  1.16  insurance" means a policy described in section 62S.01. 
  1.17     Subd. 4.  [MEDICAL ASSISTANCE.] "Medical assistance" means 
  1.18  the program of medical assistance established under section 
  1.19  256B.01. 
  1.20     Subd. 5.  [NURSING HOME.] "Nursing home" means a nursing 
  1.21  home as described in section 144A.01. 
  1.22     Subd. 6.  [PARTNERSHIP POLICY.] "Partnership policy" means 
  1.23  a long-term care insurance policy that meets the requirements 
  1.24  under subdivision 10, regardless of when the policy was first 
  1.25  issued. 
  1.26     Subd. 7.  [PARTNERSHIP PROGRAM.] "Partnership program" 
  1.27  means the Minnesota partnership for long-term care program 
  2.1   established under this section. 
  2.2      Subd. 8.  [PROGRAM ESTABLISHED.] (a) The commissioner, in 
  2.3   cooperation with the commissioner of commerce, shall establish 
  2.4   the Minnesota partnership for long-term care program to provide 
  2.5   for the financing of long-term care through a combination of 
  2.6   private insurance and medical assistance. 
  2.7      (b) An individual who meets the requirements in this 
  2.8   paragraph is eligible to participate in the partnership 
  2.9   program.  The individual must: 
  2.10     (1) be a Minnesota resident; 
  2.11     (2) purchase a partnership policy that is delivered, issued 
  2.12  for delivery, or renewed on or after the effective date of this 
  2.13  section, and maintain the partnership policy in effect 
  2.14  throughout the period of participation in the partnership 
  2.15  program; and 
  2.16     (3) exhaust the minimum benefits under the partnership 
  2.17  policy as described in this section.  Benefits received under a 
  2.18  long-term care insurance policy before the effective date of 
  2.19  this section do not count toward the exhaustion of benefits 
  2.20  required in this subdivision. 
  2.21     Subd. 9.  [MEDICAL ASSISTANCE ELIGIBILITY.] (a) Upon 
  2.22  application of an individual who meets the requirements 
  2.23  described in subdivision 8, the commissioner shall determine the 
  2.24  individual's eligibility for medical assistance according to 
  2.25  paragraphs (b) and (c). 
  2.26     (b) After disregarding financial assets exempted under 
  2.27  medical assistance eligibility requirements, the commissioner 
  2.28  shall disregard an additional amount of financial assets equal 
  2.29  to the dollar amount of coverage utilized under the partnership 
  2.30  policy. 
  2.31     (c) The commissioner shall consider the individual's income 
  2.32  according to medical assistance eligibility requirements. 
  2.33     Subd. 10.  [APPROVED POLICIES.] (a) A partnership policy 
  2.34  must meet all of the requirements in paragraphs (b) to (f).  
  2.35     (b) Minimum coverage shall be for a period of not less than 
  2.36  one year and for a dollar amount equal to 12 months of nursing 
  3.1   home care at the minimum daily benefit rate determined and 
  3.2   adjusted under paragraph (c).  The policy shall provide for home 
  3.3   health care benefits to be substituted for nursing home care 
  3.4   benefits with one home health care day benefit worth at least 50 
  3.5   percent of one nursing home care day. 
  3.6      (c) Minimum daily benefits shall be $130 for nursing home 
  3.7   care or $65 for home care.  These minimum daily benefit amounts 
  3.8   shall be adjusted by the commissioner on October 1 of each year 
  3.9   by a percentage equal to the inflation protection feature 
  3.10  described in section 62S.23, subdivision 1, clause (1).  
  3.11  Adjusted minimum daily benefit amounts shall be rounded to the 
  3.12  nearest whole dollar.  
  3.13     (d) A third party designated by the insured shall be 
  3.14  entitled to receive notice if the policy is about to lapse for 
  3.15  nonpayment of premium, and an additional 30-day grace period for 
  3.16  payment of premium shall be granted following notification to 
  3.17  that person. 
  3.18     (e) The policy must cover all of the following services: 
  3.19     (1) nursing home stay; 
  3.20     (2) home care service; and 
  3.21     (3) care management.  
  3.22     (f) A partnership policy must offer the following options 
  3.23  for an adjusted premium: 
  3.24     (1) an elimination period of not more than 100 days; and 
  3.25     (2) nonforfeiture benefits for applicants between the ages 
  3.26  of 18 and 75. 
  3.27     Subd. 11.  [LIMITATIONS ON ESTATE RECOVERY.] For an 
  3.28  individual determined eligible for medical assistance under 
  3.29  subdivision 9, the state shall limit recovery under the 
  3.30  provisions of section 256B.15 against the estate of the 
  3.31  individual or individual's spouse for medical assistance 
  3.32  benefits received by that individual to an amount that exceeds 
  3.33  the dollar amount of coverage utilized under the partnership 
  3.34  policy. 
  3.35     [EFFECTIVE DATE.] (a) If any provision of this section is 
  3.36  prohibited by federal law, no provision shall become effective 
  4.1   until federal law is changed to permit its full implementation.  
  4.2   The commissioner of human services shall notify the revisor of 
  4.3   statutes when federal law is enacted or other federal approval 
  4.4   is received and publish a notice in the State Register.  The 
  4.5   commissioner must include the notice in the first State Register 
  4.6   published after the effective date of the federal changes. 
  4.7      (b) If federal law is changed to permit a waiver of any 
  4.8   provisions prohibited by federal law, the commissioner of human 
  4.9   services shall apply to the federal government for a waiver of 
  4.10  those prohibitions or other federal authority, and that 
  4.11  provision shall become effective upon receipt of a federal 
  4.12  waiver or other federal approval, notification to the revisor of 
  4.13  statutes, and publication of a notice in the State Register to 
  4.14  that effect.