Bill Text: IA SF2141 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to the recovery of Medicaid payments by the department of human services following the death of a designated beneficiary of an ABLE savings account, and providing for contingent implementation.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2018-02-01 - Subcommittee: Segebart, Chelgren, and Ragan. S.J. 215. [SF2141 Detail]

Download: Iowa-2017-SF2141-Introduced.html

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Senate File 2141 - Introduced




                                 SENATE FILE       
                                 BY  MATHIS, RAGAN, and
                                     JOCHUM

                                      A BILL FOR

  1 An Act relating to the recovery of Medicaid payments by the
  2    department of human services following the death of a
  3    designated beneficiary of an ABLE savings account, and
  4    providing for contingent implementation.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5764XS (7) 87
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PAG LIN



  1  1    Section 1.  Section 12I.4, subsection 3, Code 2018, is
  1  2 amended to read as follows:
  1  3    3.  Moneys in the account of a designated beneficiary may
  1  4  shall not be claimed by the Iowa Medicaid program as provided
  1  5  authorized in section 529A(f) of the Internal Revenue Code and
  1  6 subject to limitations imposed by the treasurer of state unless
  1  7 such claim is required to maintain qualified ABLE program
  1  8 status under section 529A of the Internal Revenue Code.
  1  9    Sec. 2.  Section 249A.53, Code 2018, is amended by adding the
  1 10 following new subsection:
  1 11    NEW SUBSECTION.  3.  a.  Following the death of an individual
  1 12 who is a designated beneficiary of an account under a
  1 13 participation agreement pursuant to chapter 12I, all of the
  1 14 following shall apply to the extent permitted pursuant to
  1 15 chapter 12I and under federal law including section 529A of the
  1 16 Internal Revenue Code:
  1 17    (1)  The department shall not seek recovery of any account
  1 18 balance remaining in the designated beneficiary's account for
  1 19 medical assistance paid to or on behalf of the designated
  1 20 beneficiary on or after the date a participation agreement is
  1 21 entered into and an account is established for the designated
  1 22 beneficiary.
  1 23    (2)  The department shall not file a claim for payment under
  1 24 section 529A(f) of the Internal Revenue Code.
  1 25    (3)  Any account balance remaining in the designated
  1 26 beneficiary's account may be transferred to an account for
  1 27 another eligible individual specified by the designated
  1 28 beneficiary, or if another eligible beneficiary is not so
  1 29 designated, then the account balance shall be transferred
  1 30 or otherwise disposed of as determined by the estate of the
  1 31 designated beneficiary.
  1 32    b.  For the purposes of this section, "designated
  1 33 beneficiary", "Internal Revenue Code", and "participation
  1 34 agreement" mean the same as defined in section 12I.1.
  1 35    c.  For the purposes of this section, "eligible individual"
  2  1 means the same as defined in section 529A of the Internal
  2  2 Revenue Code.
  2  3    Sec. 3.  DIRECTIVES TO DEPARTMENT OF HUMAN SERVICES.
  2  4    1.  Upon enactment of this Act, the department of human
  2  5 services shall request federal approval from the centers for
  2  6 Medicare and Medicaid services of the United States department
  2  7 of health and human services to implement this Act.
  2  8    2.  The director of human services shall report, monthly,
  2  9 to the chairpersons and ranking members of the joint
  2 10 appropriations subcommittee on health and human services, the
  2 11 legislative services agency, and the legislative caucus staffs
  2 12 on the progress of the request for federal approval.
  2 13    Sec. 4.  CONTINGENT IMPLEMENTATION.  Implementation of this
  2 14 Act is contingent upon receipt of federal approval as provided
  2 15 under this Act.  The director of human services shall notify
  2 16 the Iowa Code editor upon receipt of such federal approval.
  2 17                           EXPLANATION
  2 18 The inclusion of this explanation does not constitute agreement with
  2 19 the explanation's substance by the members of the general assembly.
  2 20    This bill relates to the recovery by the Iowa Medicaid
  2 21 program of the account balance of a designated beneficiary of
  2 22 an ABLE savings account.
  2 23    The bill provides that following the death of an
  2 24 individual who is a designated beneficiary of an account
  2 25 under a participation agreement pursuant to Code chapter 12I
  2 26 (disabilities expenses savings plan trust), to the extent
  2 27 permitted pursuant to Code chapter 12I and under federal law
  2 28 including section 529A of the Internal Revenue Code, the
  2 29 department of human services (DHS) shall not seek recovery of
  2 30 any account balance remaining in a designated beneficiary's
  2 31 account for medical assistance paid to or on behalf of the
  2 32 designated beneficiary on or after the date a participation
  2 33 agreement is entered into and an account is established for
  2 34 the designated beneficiary; DHS shall not file a claim for
  2 35 payment under section 529A(f) of the Internal Revenue Code; and
  3  1 any account balance remaining in the designated beneficiary's
  3  2 account may be transferred to an account for another eligible
  3  3 individual specified by the designated beneficiary, or if
  3  4 another eligible beneficiary is not so designated, then the
  3  5 account balance shall be transferred or otherwise disposed of
  3  6 as determined by the estate of the designated beneficiary.
  3  7    The bill provides definitions for terms used in the bill and
  3  8 makes conforming changes.
  3  9    The bill directs DHS, upon enactment of the bill, to request
  3 10 federal approval from the centers for Medicare and Medicaid
  3 11 services of the United States department of health and human
  3 12 services to implement the bill. The bill requires the director
  3 13 of human services to report, monthly, to the chairpersons and
  3 14 ranking members of the joint appropriations subcommittee on
  3 15 health and human services, the legislative services agency, and
  3 16 the legislative caucus staffs on the progress of the request
  3 17 for federal approval.
  3 18    Implementation of the bill is contingent upon receipt of
  3 19 federal approval as provided in the bill and the director of
  3 20 human services shall notify the Iowa Code editor upon receipt
  3 21 of such federal approval.
  3 22    The disabilities expenses savings plan trust is also known
  3 23 as the Iowa ABLE savings plan trust which was established as
  3 24 a qualified ABLE program under section 529A of the Internal
  3 25 Revenue Code. The purpose of ABLE savings accounts is to
  3 26 encourage and assist individuals and families in saving
  3 27 private funds for the purpose of supporting individuals with
  3 28 disabilities to maintain health, independence, and quality
  3 29 of life and to provide secure funding for disability=related
  3 30 expenses on behalf of designated beneficiaries with
  3 31 disabilities that will supplement, but not supplant, benefits
  3 32 provided through private insurance, the Medicaid program,
  3 33 the federal supplemental security income program,  and other
  3 34 sources.  ABLE savings accounts allow eligible individuals the
  3 35 opportunity to save and fund a variety of qualified disability
  4  1 expenses without endangering eligibility for certain benefits
  4  2 such as Medicaid and supplemental security income.
       LSB 5764XS (7) 87
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