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.