March 26, 2009, Introduced by Reps. Slezak and Schuitmaker and referred to the Committee on Families and Children's Services.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
by amending section 106a (MCL 400.106a), as added by 2003 PA 32.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 106a. (1) This section shall be known and may be cited as
the "Michigan freedom to work for individuals with disabilities
law".
(2) The department of community health shall establish a
program to provide medical assistance to individuals who have
earned income and who meet all of the following eligibility
criteria:
(a) The individual has been found to be disabled under the
federal supplemental security income program or the social security
disability income program, or would be found to be disabled except
for earnings in excess of the substantial gainful activity level as
established by the United States social security administration.
(b) The individual is at least 16 years of age and younger
than 65 years of age.
(c) The individual has an unearned income level of not more
than 100% of the current federal poverty guidelines after
disregarding all social security disability benefits, veteran's
disability benefits, railroad retirement disability benefits,
unemployment compensation, and any other unearned income already
disregarded by medicaid.
(d)
The individual is a current medical assistance recipient
under
section 106 or meets income, asset, and eligibility
requirements
for the medical assistance program under section 106
The individual's total allowable assets do not exceed $2,000.00.
(e)
The individual is employed on a regular and continuing
basis.
The individual provides current
documentation of federal
insurance contributions act (FICA) tax payments, a copy of an
employer-issued W-2 form, documentation of self-employment
contributions act (SECA) tax payments, internal revenue service
form 1099, or a written business plan approved and supported by a
third-party investor or funding source, such as a bank, a credit
union, the United States small business administration, the
Michigan commission for the blind or the Michigan rehabilitation
services. A reevaluation of work status shall be conducted 1 time
every 12 months.
(3) The program is limited to the medical assistance services
made available to recipients under the medical assistance program
administered
under section 105. and does not include personal
assistance
services in the workplace.
(4) Without losing eligibility for medical assistance, an
individual who qualifies for and is enrolled under this program is
permitted to do all of the following:
(a) Accumulate personal savings and assets not to exceed
$75,000.00.
(b) Accumulate unlimited retirement and individual retirement
accounts. Assets described in this subparagraph shall remain
excluded from eligibility consideration for other medicaid programs
for the life of the individual even if he or she loses eligibility
under this section.
(c) Have temporary breaks in employment that do not exceed 24
months if the temporary breaks are the result of an involuntary
layoff or are determined to be medically necessary.
(d) Work and have income that exceeds the amount permitted
under section 106, but shall not have unearned income that exceeds
100% of the federal poverty guidelines after disregarding all
social security disability benefits, veteran's disability benefits,
railroad retirement disability benefits, unemployment compensation,
and any other unearned income already disregarded by medicaid.
(5) The department of community health shall establish a
premium that is based on earned income for individuals enrolled in
the program subject to all of the following provisions:
(a) The premium shall be based on the enrolled individual's
annualized earned income above 250% of the current federal poverty
guidelines for a family of 1.
(b) Individuals with an earned income of between 250% of the
federal poverty guidelines for a family of 1 and $75,000.00 shall
pay a sliding fee scale premium starting at $600.00 annually and
increasing to 100% of the average medical assistance recipient cost
as determined by the department of community health for individuals
with annual income of $75,000.00 or more.
(c) The premium sliding fee scale shall have no more than 5
tiers.
(d) The premium for an enrolled individual shall generally be
assessed on an annual basis based on the annual return required to
be filed under the internal revenue code of 1986 or other evidence
of earned income and shall be payable on a monthly basis. The
premium shall be adjusted during the year when a change in an
enrolled individual's rate of annual income moves the individual to
a different premium tier.
(6) An enrolled individual has an affirmative duty to report
earned income changes that would result in a different premium
within 30 days to the department of community health.
(7) The department of community health shall report to the
governor and the legislature within 2 years of the effective date
of the amendatory act that added this section regarding all of the
following:
(a) The effectiveness of the program in achieving its
purposes.
(b) The number of individuals enrolled in the program.
(c) The costs and benefits of the program.
(d) The opportunities and projected costs of expanding the
program to working individuals with disabilities who are not
currently eligible for the program.
(e) Additional services that should be covered under the
program to assist working individuals with disabilities in
obtaining and maintaining employment.
(8) If the terms of this section are inconsistent with federal
regulations governing federal financial participation in the
medical assistance program, the department of community health may
to the extent necessary waive any requirement set forth in
subsections (1) to (5).
(9) The program established in this section shall be
implemented on or before January 1, 2004.
(10) As used in this section:
(a) "Earned income" and "unearned income" mean those terms as
used
by the family independence agency department in determining
eligibility for the medical assistance program administered under
this act.
(b) "Federal poverty guidelines" means the poverty guidelines
published annually in the federal register by the United States
department of health and human services under its authority to
revise the poverty line under section 673(2) of subtitle B of title
VI of the omnibus budget reconciliation act of 1981, Public Law 97-
35,
42 U.S.C. USC 9902.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4708(request no.
02826'09) of the 95th Legislature is enacted into law.