2000 Minnesota Statutes

     514.981 Medical assistance lien. 

    Subdivision 1.    Property subject to lien; lien amount. 
  (a) Subject to sections 514.980 to 514.985, payments made by 
 a medical assistance agency to provide medical assistance 
 benefits to a medical assistance recipient who owns property in 
 this state or to the recipient's spouse constitute a lien in 
 favor of the agency upon all real property that is owned by the 
 medical assistance recipient on or after the time when the 
 recipient is institutionalized. 

    (b) The amount of the lien is limited to the same extent as 
 a claim against the estate under section 256B.15, subdivision 2. 

    Subd. 2.    Attachment.  (a) A medical assistance lien 
 attaches and becomes enforceable against specific real property 
 as of the date when the following conditions are met: 

    (1) payments have been made by an agency for a medical 
 assistance benefit; 

    (2) notice and an opportunity for a hearing have been 
 provided under paragraph (b); 

    (3) a lien notice has been filed as provided in section 
 514.982; 

    (4) if the property is registered property, the lien notice 
 has been memorialized on the certificate of title of the 
 property affected by the lien notice; and 

    (5) all restrictions against enforcement have ceased to 
 apply. 

    (b) An agency may not file a medical assistance lien notice 
 until the medical assistance recipient or the recipient's legal 
 representative has been sent, by certified or registered mail, 
 written notice of the agency's lien rights and there has been an 
 opportunity for a hearing under section 256.045.  In addition, 
 the agency may not file a lien notice unless the agency 
 determines as medically verified by the recipient's attending 
 physician that the medical assistance recipient cannot 
 reasonably be expected to be discharged from a medical 
 institution and return home. 

    (c) An agency may not file a medical assistance lien notice 
 against real property while it is the home of the recipient's 
 spouse. 

    (d) An agency may not file a medical assistance lien notice 
 against real property that was the homestead of the medical 
 assistance recipient or the recipient's spouse when the medical 
 assistance recipient received medical institution services if 
 any of the following persons are lawfully residing in the 
 property: 

    (1) a child of the medical assistance recipient if the 
 child is under age 21 or is blind or permanently and totally 
 disabled according to the supplemental security income criteria; 

    (2) a child of the medical assistance recipient if the 
 child resided in the homestead for at least two years 
 immediately before the date the medical assistance recipient 
 received medical institution services, and the child provided 
 care to the medical assistance recipient that permitted the 
 recipient to live without medical institution services; or 

    (3) a sibling of the medical assistance recipient if the 
 sibling has an equity interest in the property and has resided 
 in the property for at least one year immediately before the 
 date the medical assistance recipient began receiving medical 
 institution services. 

    (e) A medical assistance lien applies only to the specific 
 real property described in the lien notice. 

    Subd. 3.    Continuation of lien notice and lien.  A 
 medical assistance lien notice remains effective from the time 
 it is filed until it can be disregarded under sections 514.980 
 to 514.985.  A medical assistance lien that has attached to 
 specific real property continues until the lien is satisfied, 
 becomes unenforceable under subdivision 6, or is released and 
 discharged under subdivision 5. 

    Subd. 4.    Lien priority.  A medical assistance lien 
 that attaches to specific real property is subject to the rights 
 of any other person whose interest in the real property is 
 perfected before a lien notice has been filed under section 
 514.982, including: 

    (a) an owner, other than the recipient or recipient's 
 spouse; 

    (b) a purchaser; 

    (c) a holder of a mortgage or security interest; or 

    (d) a judgment lien creditor. 

 The rights of the other person have the same protections against 
 a medical assistance lien as are afforded against a judgment 
 lien that arises out of an unsecured obligation and that arises 
 as of the time of the filing of the medical assistance lien 
 notice under section 514.982.  A medical assistance lien is 
 inferior to a lien for taxes or special assessments or other 
 lien that would be superior to the perfected lien of a judgment 
 creditor. 

    Subd. 5.    Release.  (a) An agency that files a medical 
 assistance lien notice shall release and discharge the lien in 
 full if: 

    (1) the medical assistance recipient is discharged from the 
 medical institution and returns home; 

    (2) the medical assistance lien is satisfied; 

    (3) the agency has received reimbursement for the amount 
 secured by the lien or a legally enforceable agreement has been 
 executed providing for reimbursement of the agency for that 
 amount; or 

    (4) the medical assistance recipient, if single, or the 
 recipient's surviving spouse, has died, and a claim may not be 
 filed against the estate of the decedent under section 256B.15, 
 subdivision 3. 

    (b) Upon request, the agency that files a medical 
 assistance lien notice shall release a specific parcel of real 
 property from the lien if: 

    (1) the property is or was the homestead of the recipient's 
 spouse during the time of the medical assistance recipient's 
 institutionalization, or the property is or was attributed to 
 the spouse under section 256B.059, subdivision 3 or 4, and the 
 spouse is not receiving medical assistance benefits; 

    (2) the property would be exempt from a claim against the 
 estate under section 256B.15, subdivision 4; 

    (3) the agency receives reimbursement, or other collateral 
 sufficient to secure payment of reimbursement, in an amount 
 equal to the lesser of the amount secured by the lien, or the 
 amount the agency would be allowed to recover upon enforcement 
 of the lien against the specific parcel of property if the 
 agency attempted to enforce the lien on the date of the request 
 to release the lien; or 

    (4) the medical assistance lien cannot lawfully be enforced 
 against the property because of an error, omission, or other 
 material defect in procedure, description, identity, timing, or 
 other prerequisite to enforcement. 

    (c) The agency that files a medical assistance lien notice 
 may release the lien if the attachment or enforcement of the 
 lien is determined by the agency to be contrary to the public 
 interest. 

    (d) The agency that files a medical assistance lien notice 
 shall execute the release of the lien and file the release as 
 provided in section 514.982, subdivision 2. 

    Subd. 6.    Time limits; claim limits.  (a) A medical 
 assistance lien is a lien on the real property it describes for 
 a period of ten years from the date it attaches according to 
 section 514.981, subdivision 2, paragraph (a), except as 
 otherwise provided for in sections 514.980 to 514.985.  The 
 agency may renew a medical assistance lien for an additional ten 
 years from the date it would otherwise expire by recording or 
 filing a certificate of renewal before the lien expires.  The 
 certificate shall be recorded or filed in the office of the 
 county recorder or registrar of titles for the county in which 
 the lien is recorded or filed.  The certificate must refer to 
 the recording or filing data for the medical assistance lien it 
 renews.  The certificate need not be attested, certified, or 
 acknowledged as a condition for recording or filing.  The 
 registrar of titles or the recorder shall file, record, index, 
 and return the certificate of renewal in the same manner as 
 provided for medical assistance liens in section 514.982, 
 subdivision 2. 

    (b) A medical assistance lien is not enforceable against 
 the real property of an estate to the extent there is a 
 determination by a court of competent jurisdiction, or by an 
 officer of the court designated for that purpose, that there are 
 insufficient assets in the estate to satisfy the agency's 
 medical assistance lien in whole or in part because of the 
 homestead exemption under section 256B.15, subdivision 4, the 
 rights of the surviving spouse or minor children under section 
 524.2-403, paragraphs (a) and (b), or claims with a priority 
 under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
 purposes of this section, the rights of the decedent's adult 
 children to exempt property under section 524.2-403, paragraph 
 (b), shall not be considered costs of administration under 
 section 524.3-805, paragraph (a), clause (1). 

    HIST: 1Sp1993 c 1 art 5 s 118; 1997 c 217 art 2 s 11; 2000 c 
 400 s 4