Bill Text: MI HB5935 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Human services; medical services; sliding fee scale premium based on total gross income; provide for certain individuals. Amends sec. 106a of 1939 PA 280 (MCL 400.106a).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-11-13 - Printed Bill Filed 11/13/2014 [HB5935 Detail]

Download: Michigan-2013-HB5935-Introduced.html

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HOUSE BILL No. 5935

 

November 12, 2014, Introduced by Rep. Irwin and referred to the Committee on Insurance.

 

     A bill to amend 1939 PA 280, entitled

 

"The social welfare act,"

 

by amending section 106a (MCL 400.106a), as amended by 2012 PA 356.

 

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 initial 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 a countable income level of not more

 

than 250% of the current federal poverty guidelines for a family of

 

1.

 

     (d) The individual's assets meet the medicare part D extra

 

help low income subsidy (LIS) and medicare savings program (MSP)

 

asset limit, as adjusted annually.

 

     (e) The individual is employed on a regular and continuing

 

basis.

 

     (3) The program is limited to the medical assistance services

 

made available to recipients under the medical assistance program

 

administered under section 105.

 

     (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 with income from employment while enrolled in the freedom

 

to work for individuals with disabilities program. Assets described

 

in this subdivision shall remain excluded from eligibility

 

consideration for other medicaid programs for 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 or for

 

relocation necessary due to employment in this state.

 

     (d) Work and have income that exceeds the amount permitted

 

under section 106, but shall not have unearned income that exceeds

 

250% of the federal poverty guidelines.

 

     (5) The department of community health shall establish a

 

premium that is based on the enrolled individual's earned and

 

unearned income. An enrolled individual shall pay a sliding fee

 

scale monthly premium based on an annual review of total gross

 

income as follows:

 

     (a) No premium for individuals with gross income less than

 

138% of the federal poverty guidelines for a family of 1.

 

     (b) A premium of 7.5% 3.5% per month of gross income for

 

individuals who have total gross income between 138% of the federal

 

poverty guidelines for a family of 1 and $75,000.00 annual adjusted

 

gross income.

 

     (c) A premium of 50% per month of gross income for individuals

 

who have total gross income between $75,000.00 annual adjusted

 

gross income and $150,000.00 annual adjusted gross income.

 

     (d) (c) A premium of 100% of the average freedom to work

 

program participant cost for an enrolled individual with adjusted

 

gross income over $75,000.00 $150,000.00 annually.

 

     (e) (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 changes.

 

     (6) 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).

 

     (7) As used in this section:

 

     (a) "Adjusted gross income" means that term as defined in

 

section 62 of the internal revenue code of 1986.

 

     (b) "Countable income", "earned income", and "unearned income"

 

mean those terms as used by the department of community health in

 

determining eligibility for the medical assistance program

 

administered under this act.

 

     (c) "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, 42 USC 9902.