SF 1501

as introduced - 90th Legislature (2017 - 2018) Posted on 02/28/2017 09:34am

A bill for an act
relating to human services; modifying medical assistance spenddown procedures;
amending Minnesota Statutes 2016, section 256B.056, subdivision 5.

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

Section 1.

Minnesota Statutes 2016, section 256B.056, subdivision 5, is amended to read:

Subd. 5.

Excess income.

new text begin (a) new text end A person who has excess income is eligible for medical
assistance if the person has expenses for medical care that are more than the amount of the
person's excess income, computed by deducting incurred medical expenses from the excess
income to reduce the excess to the income standard specified in subdivision 5c. The person
shall elect to have the medical expenses deducted at the beginning of a one-month budget
period or at the beginning of a six-month budget period.

new text begin (b) new text end The commissioner shall allow persons eligible for assistance on a one-month
spenddown basis under this subdivision to elect to pay the monthly spenddown amount in
advance of the month of eligibility to the state agency in order to maintain eligibility on a
continuous basis. If the recipient does not pay the spenddown amount on or before the 20th
of the month, the recipient is ineligible for this option for the following month. The local
agency shall code the Medicaid Management Information System (MMIS) to indicate that
the recipient has elected this option. The state agency shall convey recipient eligibility
information relative to the collection of the spenddown to providers through the Electronic
Verification System (EVS). A recipient electing advance payment must pay the state agency
the monthly spenddown amount on or before the 20th of the month in order to be eligible
for this option in the following month.

new text begin (c) The commissioner shall require persons on a one-month spenddown eligible under
section 256B.055, subdivisions 7, 7a, and 12, who do not elect to pay the monthly spenddown
amount in advance as provided under paragraph (b), to pay directly to the commissioner
the monthly spenddown amount owed to providers for any services received during the
spenddown period. The commissioner shall reimburse providers for services provided to a
person during the spenddown period at the rate billed by the provider, except that payment
to the provider shall not exceed the medical assistance rate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end