Bill Text: IA SSB3178 | 2017-2018 | 87th General Assembly | Introduced
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: Committee Bill
Status: (N/A - Dead) 2018-02-12 - Subcommittee Meeting: 02/13/2018 2:00PM Senate Lobbyist Lounge [SSB3178 Detail]
Download: Iowa-2017-SSB3178-Introduced.html
Senate
Study
Bill
3178
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
HUMAN
RESOURCES
BILL
BY
CHAIRPERSON
SEGEBART)
A
BILL
FOR
An
Act
relating
to
the
recovery
of
Medicaid
payments
by
the
1
department
of
human
services
following
the
death
of
a
2
designated
beneficiary
of
an
ABLE
savings
account,
and
3
providing
for
contingent
implementation.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
12I.4,
subsection
3,
Code
2018,
is
1
amended
to
read
as
follows:
2
3.
Moneys
in
the
account
of
a
designated
beneficiary
may
3
shall
not
be
claimed
by
the
Iowa
Medicaid
program
as
provided
4
authorized
in
section
529A(f)
of
the
Internal
Revenue
Code
and
5
subject
to
limitations
imposed
by
the
treasurer
of
state
unless
6
such
claim
is
required
to
maintain
qualified
ABLE
program
7
status
under
section
529A
of
the
Internal
Revenue
Code
.
8
Sec.
2.
Section
249A.53,
Code
2018,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
3.
a.
Following
the
death
of
an
individual
11
who
is
a
designated
beneficiary
of
an
account
under
a
12
participation
agreement
pursuant
to
chapter
12I,
all
of
the
13
following
shall
apply
to
the
extent
permitted
pursuant
to
14
chapter
12I
and
under
federal
law
including
section
529A
of
the
15
Internal
Revenue
Code:
16
(1)
The
department
shall
not
seek
recovery
of
any
account
17
balance
remaining
in
the
designated
beneficiary’s
account
for
18
medical
assistance
paid
to
or
on
behalf
of
the
designated
19
beneficiary
on
or
after
the
date
a
participation
agreement
is
20
entered
into
and
an
account
is
established
for
the
designated
21
beneficiary.
22
(2)
The
department
shall
not
file
a
claim
for
payment
under
23
section
529A(f)
of
the
Internal
Revenue
Code.
24
(3)
Any
account
balance
remaining
in
the
designated
25
beneficiary’s
account
may
be
transferred
to
an
account
for
26
another
eligible
individual
specified
by
the
designated
27
beneficiary,
or
if
another
eligible
beneficiary
is
not
so
28
designated,
then
the
account
balance
shall
be
transferred
29
or
otherwise
disposed
of
as
determined
by
the
estate
of
the
30
designated
beneficiary.
31
b.
For
the
purposes
of
this
section,
“designated
32
beneficiary”
,
“Internal
Revenue
Code”
,
and
“participation
33
agreement”
mean
the
same
as
defined
in
section
12I.1.
34
c.
For
the
purposes
of
this
section,
“eligible
individual”
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_____
means
the
same
as
defined
in
section
529A
of
the
Internal
1
Revenue
Code.
2
Sec.
3.
DIRECTIVES
TO
DEPARTMENT
OF
HUMAN
SERVICES.
3
1.
Upon
enactment
of
this
Act,
the
department
of
human
4
services
shall
request
federal
approval
from
the
centers
for
5
Medicare
and
Medicaid
services
of
the
United
States
department
6
of
health
and
human
services
to
implement
this
Act.
7
2.
The
director
of
human
services
shall
report,
monthly,
8
to
the
chairpersons
and
ranking
members
of
the
joint
9
appropriations
subcommittee
on
health
and
human
services,
the
10
legislative
services
agency,
and
the
legislative
caucus
staffs
11
on
the
progress
of
the
request
for
federal
approval.
12
Sec.
4.
CONTINGENT
IMPLEMENTATION.
Implementation
of
this
13
Act
is
contingent
upon
receipt
of
federal
approval
as
provided
14
under
this
Act.
The
director
of
human
services
shall
notify
15
the
Iowa
Code
editor
upon
receipt
of
such
federal
approval.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
recovery
by
the
Iowa
Medicaid
20
program
of
the
account
balance
of
a
designated
beneficiary
of
21
an
ABLE
savings
account.
22
The
bill
provides
that
following
the
death
of
an
23
individual
who
is
a
designated
beneficiary
of
an
account
24
under
a
participation
agreement
pursuant
to
Code
chapter
12I
25
(disabilities
expenses
savings
plan
trust),
to
the
extent
26
permitted
pursuant
to
Code
chapter
12I
and
under
federal
law
27
including
section
529A
of
the
Internal
Revenue
Code,
the
28
department
of
human
services
(DHS)
shall
not
seek
recovery
of
29
any
account
balance
remaining
in
a
designated
beneficiary’s
30
account
for
medical
assistance
paid
to
or
on
behalf
of
the
31
designated
beneficiary
on
or
after
the
date
a
participation
32
agreement
is
entered
into
and
an
account
is
established
for
33
the
designated
beneficiary;
DHS
shall
not
file
a
claim
for
34
payment
under
section
529A(f)
of
the
Internal
Revenue
Code;
and
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any
account
balance
remaining
in
the
designated
beneficiary’s
1
account
may
be
transferred
to
an
account
for
another
eligible
2
individual
specified
by
the
designated
beneficiary,
or
if
3
another
eligible
beneficiary
is
not
so
designated,
then
the
4
account
balance
shall
be
transferred
or
otherwise
disposed
of
5
as
determined
by
the
estate
of
the
designated
beneficiary.
6
The
bill
provides
definitions
for
terms
used
in
the
bill
and
7
makes
conforming
changes.
8
The
bill
directs
DHS,
upon
enactment
of
the
bill,
to
request
9
federal
approval
from
the
centers
for
Medicare
and
Medicaid
10
services
of
the
United
States
department
of
health
and
human
11
services
to
implement
the
bill.
The
bill
requires
the
director
12
of
human
services
to
report,
monthly,
to
the
chairpersons
and
13
ranking
members
of
the
joint
appropriations
subcommittee
on
14
health
and
human
services,
the
legislative
services
agency,
and
15
the
legislative
caucus
staffs
on
the
progress
of
the
request
16
for
federal
approval.
17
Implementation
of
the
bill
is
contingent
upon
receipt
of
18
federal
approval
as
provided
in
the
bill
and
the
director
of
19
human
services
shall
notify
the
Iowa
Code
editor
upon
receipt
20
of
such
federal
approval.
21
The
disabilities
expenses
savings
plan
trust
is
also
known
22
as
the
Iowa
ABLE
savings
plan
trust
which
was
established
as
23
a
qualified
ABLE
program
under
section
529A
of
the
Internal
24
Revenue
Code.
The
purpose
of
ABLE
savings
accounts
is
to
25
encourage
and
assist
individuals
and
families
in
saving
26
private
funds
for
the
purpose
of
supporting
individuals
with
27
disabilities
to
maintain
health,
independence,
and
quality
28
of
life
and
to
provide
secure
funding
for
disability-related
29
expenses
on
behalf
of
designated
beneficiaries
with
30
disabilities
that
will
supplement,
but
not
supplant,
benefits
31
provided
through
private
insurance,
the
Medicaid
program,
32
the
federal
supplemental
security
income
program,
and
other
33
sources.
ABLE
savings
accounts
allow
eligible
individuals
the
34
opportunity
to
save
and
fund
a
variety
of
qualified
disability
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