2005 Minnesota Statutes

     256B.0571 Long-term care partnership. 

    Subdivision 1.    Definitions.  For purposes of this 
 section, the following terms have the meanings given them. 

    Subd. 2.    Home care service.  "Home care service" 
 means care described in section 144A.43. 

    Subd. 3.    Long-term care insurance.  "Long-term care 
 insurance" means a policy described in section 62S.01. 

    Subd. 4.    Medical assistance.  "Medical assistance" 
 means the program of medical assistance established under 
 section 256B.01. 

    Subd. 5.    Nursing home.  "Nursing home" means a 
 nursing home as described in section 144A.01. 

    Subd. 6.    Partnership policy.  "Partnership policy" 
 means a long-term care insurance policy that meets the 
 requirements under subdivision 10 or 11, regardless of when the 
 policy was first issued. 

    Subd. 7.    Partnership program.  "Partnership program" 
 means the Minnesota partnership for long-term care program 
 established under this section. 

    Subd. 8.    Program established.  (a) The commissioner, 
 in cooperation with the commissioner of commerce, shall 
 establish the Minnesota partnership for long-term care program 
 to provide for the financing of long-term care through a 
 combination of private insurance and medical assistance. 

    (b) An individual who meets the requirements in this 
 paragraph is eligible to participate in the partnership 
 program.  The individual must: 

    (1) be a Minnesota resident; 

    (2) purchase a partnership policy that is delivered, issued 
 for delivery, or renewed on or after the effective date of Laws 
 2005, First Special Session chapter 4, article 7, section 5, and 
 maintain the partnership policy in effect throughout the period 
 of participation in the partnership program; and 

    (3) exhaust the minimum benefits under the partnership 
 policy as described in this section.  Benefits received under a 
 long-term care insurance policy before the effective date of 
 Laws 2005, First Special Session chapter 4, article 7, section 
 5, do not count toward the exhaustion of benefits required in 
 this subdivision. 

    Subd. 9.    Medical assistance eligibility.  (a) Upon 
 application of an individual who meets the requirements 
 described in subdivision 8, the commissioner shall determine the 
 individual's eligibility for medical assistance according to 
 paragraphs (b) and (c). 

    (b) After disregarding financial assets exempted under 
 medical assistance eligibility requirements, the commissioner 
 shall disregard an additional amount of financial assets equal 
 to the dollar amount of coverage utilized under the partnership 
 policy. 

    (c) The commissioner shall consider the individual's income 
 according to medical assistance eligibility requirements. 

    Subd. 10.    Dollar-for-dollar asset protection policies. 
  (a) A dollar-for-dollar asset protection policy must meet all 
 of the requirements in paragraphs (b) to (e). 

    (b) The policy must satisfy the requirements of chapter 62S.

    (c) The policy must offer an elimination period of not more 
 than 180 days for an adjusted premium. 

    (d) The policy must satisfy the requirements established by 
 the commissioner of human services under subdivision 14. 

    (e) Minimum daily benefits shall be $130 for nursing home 
 care or $65 for home care, with inflation protection provided in 
 the policy as described in section 62S.23, subdivision 1, clause 
 (1).  These minimum daily benefit amounts shall be adjusted by 
 the commissioner on October 1 of each year by a percentage equal 
 to the inflation protection feature described in section 62S.23, 
 subdivision 1, clause (1), for purposes of setting minimum 
 requirements that a policy must meet in future years in order to 
 initially qualify as an approved policy under this subdivision.  
 Adjusted minimum daily benefit amounts shall be rounded to the 
 nearest whole dollar. 

    Subd. 11.    Total asset protection policies.  (a) A 
 total asset protection policy must meet all of the requirements 
 in subdivision 10, paragraphs (b) to (d), and this subdivision.  

    (b) Minimum coverage shall be for a period of not less than 
 three years and for a dollar amount equal to 36 months of 
 nursing home care at the minimum daily benefit rate determined 
 and adjusted under paragraph (c).  

    (c) Minimum daily benefits shall be $150 for nursing home 
 care or $75 for home care, with inflation protection provided in 
 the policy as described in section 62S.23, subdivision 1, clause 
 (1).  These minimum daily benefit amounts shall also be adjusted 
 by the commissioner on October 1 of each year by a percentage 
 equal to the inflation protection feature described in section 
 62S.23, subdivision 1, clause (1), for purposes of setting 
 minimum requirements that a policy must meet in future years in 
 order to initially qualify as an approved policy under this 
 subdivision.  Adjusted minimum daily benefit amounts shall be 
 rounded to the nearest whole dollar.  

    (d) The policy must cover all of the following services: 

    (1) nursing home stay; 

    (2) home care service; and 

    (3) care management. 

    Subd. 12.    Compliance with federal law.  An issuer of 
 a partnership policy must comply with any federal law 
 authorizing partnership policies in Minnesota, including any 
 federal regulations, as amended, adopted under that law.  This 
 subdivision does not require compliance with any provision of 
 this federal law until the date upon which the law requires 
 compliance with the provision.  The commissioner has authority 
 to enforce this subdivision. 

    Subd. 13.    Limitations on estate recovery.  (a) For an 
 individual who exhausts the minimum benefits of a 
 dollar-for-dollar asset protection policy under subdivision 10, 
 and is determined eligible for medical assistance under 
 subdivision 9, the state shall limit recovery under the 
 provisions of section 256B.15 against the estate of the 
 individual or individual's spouse for medical assistance 
 benefits received by that individual to an amount that exceeds 
 the dollar amount of coverage utilized under the partnership 
 policy. 

    (b) For an individual who exhausts the minimum benefits of 
 a total asset protection policy under subdivision 11, and is 
 determined eligible for medical assistance under subdivision 9, 
 the state shall not seek recovery under the provisions of 
 section 256B.15 against the estate of the individual or 
 individual's spouse for medical assistance benefits received by 
 that individual. 

    Subd. 14.    Implementation.  (a) If federal law is 
 amended or a federal waiver is granted to permit implementation 
 of this section, the commissioner, in consultation with the 
 commissioner of commerce, may alter the requirements of 
 subdivisions 10 and 11, and may establish additional 
 requirements for approved policies in order to conform with 
 federal law or waiver authority.  In establishing these 
 requirements, the commissioner shall seek to maximize purchase 
 of qualifying policies by Minnesota residents while controlling 
 medical assistance costs. 

    (b) The commissioner is authorized to suspend 
 implementation of this section until the next session of the 
 legislature if the commissioner, in consultation with the 
 commissioner of commerce, determines that the federal 
 legislation or federal waiver authorizing a partnership program 
 in Minnesota is likely to impose substantial unforeseen costs on 
 the state budget. 

    (c) The commissioner must take action under paragraph (a) 
 or (b) within 45 days of final federal action authorizing a 
 partnership policy in Minnesota. 

    (d) The commissioner must notify the appropriate 
 legislative committees of action taken under this subdivision 
 within 50 days of final federal action authorizing a partnership 
 policy in Minnesota. 

    (e) The commissioner must publish a notice in the State 
 Register of implementation decisions made under this subdivision 
 as soon as practicable. 

    HIST: 1Sp2005 c 4 art 7 s 5 

*   NOTE:  This section, as added by Laws 2005, First Special 
*Session chapter 4, article 7, section 5, is effective contingent 
*on federal law.  For conditions relating to the effect of this 
*section, see Laws 2005, First Special Session chapter 4, article 
*7, section 5, the effective date.