Bill Text: MI SB0446 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Human services; medical services; premiums for medicaid "freedom to work" program; modify. Amends sec. 106a of 1939 PA 280 (MCL 400.106a). TIE BAR WITH: SB 0447'09

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Introduced - Dead) 2009-04-21 - Referred To Committee On Families And Human Services [SB0446 Detail]

Download: Michigan-2009-SB0446-Introduced.html

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SENATE BILL No. 446

 

 

April 21, 2009, Introduced by Senators VAN WOERKOM, KUIPERS, BIRKHOLZ, JANSEN, GLEASON and CHERRY and referred to the Committee on Families and Human 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.

 

     (5) The department of community health shall establish a

 

premium that is based on earned income and unearned income,

 

including social security disability benefits and veteran's

 

disability benefits, railroad retirement disability benefits,

 

unemployment compensation, and any other unearned income, for

 

individuals enrolled in the program. An enrolled individual shall

 

pay a sliding fee scale premium based on an annual review of gross

 

income as follows:

 

     (a) Three percent per month of gross income between 135% of

 

the federal poverty guidelines for a family of 1 and $75,000.00

 

annual adjusted gross income.

 

     (b) One hundred percent of the average freedom to work program

 

participant cost for an enrolled individual with adjusted gross

 

income over $75,000.00 annually.

 

     (c) (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 increases or decreases the enrolled

 

individual's gross monthly income by $500.00 or more.

 

     (6) Subsection (5) does not apply to individuals currently

 

enrolled in the program under this section until 12 months after

 

the enrolled individual's next annual review.

 

     (7) (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.

 

     (9) The department of community health shall pay the premium

 

for medicare part B for any individual enrolled under this section.

 

     (10) 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) (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.

 

     (c) (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. 447                                  

 

          of the 95th Legislature is enacted into law.