1.1                          A bill for an act 
  1.2             relating to medical assistance; increasing the medical 
  1.3             assistance income standard; increasing the asset 
  1.4             limitations for medical assistance eligibility for the 
  1.5             elderly and disabled; disregarding child support 
  1.6             payments, social security benefits, and other basic 
  1.7             needs benefits as income for TEFRA medical assistance 
  1.8             eligibility for disabled children; amending Minnesota 
  1.9             Statutes 2000, section 256B.056, subdivisions 1a, 3, 
  1.10            and 4. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2000, section 256B.056, 
  1.13  subdivision 1a, is amended to read: 
  1.14     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
  1.15  specifically required by state law or rule or federal law or 
  1.16  regulation, the methodologies used in counting income and assets 
  1.17  to determine eligibility for medical assistance for persons 
  1.18  whose eligibility category is based on blindness, disability, or 
  1.19  age of 65 or more years, the methodologies for the supplemental 
  1.20  security income program shall be used.  For children eligible 
  1.21  under section 256B.055, subdivision 12, or for home and 
  1.22  community-based waiver services whose eligibility for medical 
  1.23  assistance is determined without regard to parental income, 
  1.24  child support payments, including any payments made by an 
  1.25  obligor in satisfaction of or in addition to a temporary or 
  1.26  permanent order for child support, social security payments, and 
  1.27  other benefits for basic needs are not counted as income.  For 
  1.28  families and children, which includes all other eligibility 
  2.1   categories, the methodologies under the state's AFDC plan in 
  2.2   effect as of July 16, 1996, as required by the Personal 
  2.3   Responsibility and Work Opportunity Reconciliation Act of 1996 
  2.4   (PRWORA), Public Law Number 104-193, shall be used.  Effective 
  2.5   upon federal approval, in-kind contributions to, and payments 
  2.6   made on behalf of, a recipient, by an obligor, in satisfaction 
  2.7   of or in addition to a temporary or permanent order for child 
  2.8   support or maintenance, shall be considered income to the 
  2.9   recipient.  For these purposes, a "methodology" does not include 
  2.10  an asset or income standard, or accounting method, or method of 
  2.11  determining effective dates. 
  2.12     Sec. 2.  Minnesota Statutes 2000, section 256B.056, 
  2.13  subdivision 3, is amended to read: 
  2.14     Subd. 3.  [ASSET LIMITATIONS.] (a) To be eligible for 
  2.15  medical assistance, a person other than a person eligible under 
  2.16  section 256B.055, subdivision 7, must not individually own more 
  2.17  than $3,000 in assets, or if a member of a household with two 
  2.18  family members, husband and wife, or parent and child, the 
  2.19  household must not own more than $6,000 in assets, plus $200 for 
  2.20  each additional legal dependent. 
  2.21     (b) To be eligible for medical assistance, a person 
  2.22  eligible under section 256B.055, subdivision 7, must not 
  2.23  individually own more than $10,000 in assets, or if a member of 
  2.24  a household with two family members, husband and wife, or parent 
  2.25  and child, the household must not own more than $18,000 in 
  2.26  assets, plus $200 for each additional legal dependent.  
  2.27     (c) In addition to ~~these~~ the maximum amounts established in 
  2.28  paragraphs (a) and (b), an eligible individual or family may 
  2.29  accrue interest on these amounts, but they must be reduced to 
  2.30  the maximum at the time of an eligibility redetermination.  The 
  2.31  accumulation of the clothing and personal needs allowance 
  2.32  according to section 256B.35 must also be reduced to the maximum 
  2.33  at the time of the eligibility redetermination.  The value of 
  2.34  assets that are not considered in determining eligibility for 
  2.35  medical assistance is the value of those assets excluded under 
  2.36  the AFDC state plan as of July 16, 1996, as required by the 
  3.1   Personal Responsibility and Work Opportunity Reconciliation Act 
  3.2   of 1996 (PRWORA), Public Law Number 104-193, for families and 
  3.3   children, and the supplemental security income program for aged, 
  3.4   blind, and disabled persons, with the following exceptions: 
  3.5      ~~(a)~~ (1) household goods and personal effects are not 
  3.6   considered~~.~~; 
  3.7      ~~(b)~~ (2) capital and operating assets of a trade or business 
  3.8   that the local agency determines are necessary to the person's 
  3.9   ability to earn an income are not considered~~.~~; 
  3.10     ~~(c)~~ (3) motor vehicles are excluded to the same extent 
  3.11  excluded by the supplemental security income program~~.~~; and 
  3.12     ~~(d)~~ (4) assets designated as burial expenses are excluded 
  3.13  to the same extent excluded by the supplemental security income 
  3.14  program. 
  3.15     Sec. 3.  Minnesota Statutes 2000, section 256B.056, 
  3.16  subdivision 4, is amended to read: 
  3.17     Subd. 4.  [INCOME.] (a) To be eligible for medical 
  3.18  assistance, a person eligible under section 256B.055, 
  3.19  subdivision 7, ~~not receiving supplemental security income~~ 
  3.20  ~~program payments, and~~ may have income up to 100 percent of the 
  3.21  federal poverty guidelines for the family size effective on 
  3.22  April 1 of each year and increases in benefits under title II of 
  3.23  the Social Security Act which shall not be counted as income for 
  3.24  purposes of this subdivision until the first day of the second 
  3.25  full month following publication of the change in the federal 
  3.26  poverty guidelines. 
  3.27     (b) To be eligible for medical assistance, families and 
  3.28  children may have an income up to 133-1/3 percent of the AFDC 
  3.29  income standard in effect under the July 16, 1996, AFDC state 
  3.30  plan.  Effective July 1, 2000, the base AFDC standard in effect 
  3.31  on July 16, 1996, shall be increased by three percent. Effective 
  3.32  January 1, 2000, and each successive January, recipients of 
  3.33  supplemental security income may have an income up to the 
  3.34  supplemental security income standard in effect on that date. 
  3.35     (c) In computing income to determine eligibility of persons 
  3.36  under paragraph (a) or (b) who are not residents of long-term 
  4.1   care facilities, the commissioner shall disregard increases in 
  4.2   income as required by Public Law Numbers 94-566, section 503; 
  4.3   99-272; and 99-509.  Veterans aid and attendance benefits and 
  4.4   Veterans Administration unusual medical expense payments are 
  4.5   considered income to the recipient.