Bill Text: MN HF2176 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Medical assistance employed persons with disabilities program modified, asset limitation provisions changed, and money appropriated.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2012-02-13 - Author added Hausman [HF2176 Detail]
Download: Minnesota-2011-HF2176-Introduced.html
1.2relating to human services; modifying the medical assistance employed persons
1.3with disabilities program; changing asset limitation provisions; appropriating
1.4money;amending Minnesota Statutes 2011 Supplement, sections 256B.056,
1.5subdivision 3; 256B.057, subdivision 9.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 256B.056, subdivision 3,
1.8is amended to read:
1.9 Subd. 3. Asset limitations for individuals and families. (a) To be eligible for
1.10medical assistance, a person must not individually own more than $3,000 in assets, or if a
1.11member of a household with two family members, husband and wife, or parent and child,
1.12the household must not own more than $6,000 in assets, plus $200 for each additional
1.13legal dependent. In addition to these maximum amounts, an eligible individual or family
1.14may accrue interest on these amounts, but they must be reduced to the maximum at the
1.15time of an eligibility redetermination. The accumulation of the clothing and personal
1.16needs allowance according to section256B.35 must also be reduced to the maximum at
1.17the time of the eligibility redetermination. The value of assets that are not considered in
1.18determining eligibility for medical assistance is the value of those assets excluded under
1.19the supplemental security income program for aged, blind, and disabled persons, with
1.20the following exceptions:
1.21(1) household goods and personal effects are not considered;
1.22(2) capital and operating assets of a trade or business that the local agency determines
1.23are necessary to the person's ability to earn an income are not considered;
1.24(3) motor vehicles are excluded to the same extent excluded by the supplemental
1.25security income program;
2.1(4) assets designated as burial expenses are excluded to the same extent excluded by
2.2the supplemental security income program. Burial expenses funded by annuity contracts
2.3or life insurance policies must irrevocably designate the individual's estate as contingent
2.4beneficiary to the extent proceeds are not used for payment of selected burial expenses;and
2.5(5) for a person who no longer qualifies as an employed person with a disability due
2.6to loss of earnings, assets allowed while eligible for medical assistance under section
2.7256B.057, subdivision 9
, are not considered for 12 months, beginning with the first month
2.8of ineligibility as an employed person with a disability, to the extent that the person's total
2.9assets remain within the allowed limits of section256B.057, subdivision 9 , paragraph
2.10(d).; and
2.11(6) when a person enrolled in medical assistance under section 256B.057,
2.12subdivision 9, reaches age 65 and has been enrolled during each of the 24 consecutive
2.13months before the person's 65th birthday, the assets owned by the person and the person's
2.14spouse must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph
2.15(c), when determining eligibility for medical assistance under section 256B.055,
2.16subdivision 7. The income of a spouse of a person enrolled in medical assistance under
2.17section 256B.057, subdivision 9, during each of the 24 consecutive months before the
2.18person's 65th birthday must be disregarded when determining eligibility for medical
2.19assistance under section 256B.055, subdivision 7, when the person reaches age 65. This
2.20clause does not apply at the time the person or the person's spouse requests medical
2.21assistance payment for long-term care services.
2.22(b) No asset limit shall apply to persons eligible under section256B.055 , subdivision
2.2315.
2.24 Sec. 2. Minnesota Statutes 2011 Supplement, section 256B.057, subdivision 9, is
2.25amended to read:
2.26 Subd. 9. Employed persons with disabilities. (a) Medical assistance may be paid
2.27for a person who is employed and who:
2.28(1) but for excess earnings or assets, meets the definition of disabled under the
2.29Supplemental Security Income program;
2.30(2) is at least 16 but less than 65 years of age;
2.31(3) (2) meets the asset limits in paragraph (d); and
2.32(4) (3) pays a premium and other obligations under paragraph (e).
2.33 (b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible
2.34for medical assistance under this subdivision, a person must have more than $65 of earned
2.35income. Earned income must have Medicare, Social Security, and applicable state and
3.1federal taxes withheld. The person must document earned income tax withholding. Any
3.2spousal income or assets shall be disregarded for purposes of eligibility and premium
3.3determinations.
3.4(c) After the month of enrollment, a person enrolled in medical assistance under
3.5this subdivision who:
3.6(1) is temporarily unable to work and without receipt of earned income due to a
3.7medical condition, as verified by a physician; or
3.8(2) loses employment for reasons not attributable to the enrollee, and is without
3.9receipt of earned income may retain eligibility for up to four consecutive months after the
3.10month of job loss. To receive a four-month extension, enrollees must verify the medical
3.11condition or provide notification of job loss. All other eligibility requirements must be met
3.12and the enrollee must pay all calculated premium costs for continued eligibility.
3.13(d) For purposes of determining eligibility under this subdivision, a person's assets
3.14must not exceed $20,000, excluding:
3.15(1) all assets excluded under section256B.056 ;
3.16(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans,
3.17Keogh plans, and pension plans;
3.18(3) medical expense accounts set up through the person's employer; and
3.19(4) spousal assets, including spouse's share of jointly held assets.
3.20(e) All enrollees must pay a premium to be eligible for medical assistance under this
3.21subdivision, except as provided under section256.01, subdivision 18b .
3.22(1) An enrollee must pay the greater of a $65 premium or the premium calculated
3.23based on the person's gross earned and unearned income and the applicable family size
3.24using a sliding fee scale established by the commissioner, which begins at one percent of
3.25income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of
3.26income for those with incomes at or above 300 percent of the federal poverty guidelines.
3.27(2) Annual adjustments in the premium schedule based upon changes in the federal
3.28poverty guidelines shall be effective for premiums due in July of each year.
3.29(3) All enrollees who receive unearned income must pay five percent of unearned
3.30income in addition to the premium amount, except as provided under section256.01,
3.31subdivision 18b .
3.32(4) Increases in benefits under title II of the Social Security Act shall not be counted
3.33as income for purposes of this subdivision until July 1 of each year.
3.34(f) A person's eligibility and premium shall be determined by the local county
3.35agency. Premiums must be paid to the commissioner. All premiums are dedicated to
3.36the commissioner.
4.1(g) Any required premium shall be determined at application and redetermined at
4.2the enrollee's six-month income review or when a change in income or household size is
4.3reported. Enrollees must report any change in income or household size within ten days
4.4of when the change occurs. A decreased premium resulting from a reported change in
4.5income or household size shall be effective the first day of the next available billing month
4.6after the change is reported. Except for changes occurring from annual cost-of-living
4.7increases, a change resulting in an increased premium shall not affect the premium amount
4.8until the next six-month review.
4.9(h) Premium payment is due upon notification from the commissioner of the
4.10premium amount required. Premiums may be paid in installments at the discretion of
4.11the commissioner.
4.12(i) Nonpayment of the premium shall result in denial or termination of medical
4.13assistance unless the person demonstrates good cause for nonpayment. Good cause exists
4.14if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to
4.15D, are met. Except when an installment agreement is accepted by the commissioner,
4.16all persons disenrolled for nonpayment of a premium must pay any past due premiums
4.17as well as current premiums due prior to being reenrolled. Nonpayment shall include
4.18payment with a returned, refused, or dishonored instrument. The commissioner may
4.19require a guaranteed form of payment as the only means to replace a returned, refused,
4.20or dishonored instrument.
4.21(j) The commissioner shall notify enrollees annually beginning at least 24 months
4.22before the person's 65th birthday of the medical assistance eligibility rules affecting
4.23income, assets, and treatment of a spouse's income and assets that will be applied upon
4.24reaching age 65.
4.25(k) For enrollees whose income does not exceed 200 percent of the federal poverty
4.26guidelines and who are also enrolled in Medicare, the commissioner shall reimburse
4.27the enrollee for Medicare part B premiums under section256B.0625, subdivision 15 ,
4.28paragraph (a).
4.29 Sec. 3. APPROPRIATION.
4.30$....... is appropriated from the general fund to the commissioner of human services
4.31for fiscal year 2013 for the purposes of sections 1 and 2.
1.3with disabilities program; changing asset limitation provisions; appropriating
1.4money;amending Minnesota Statutes 2011 Supplement, sections 256B.056,
1.5subdivision 3; 256B.057, subdivision 9.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 256B.056, subdivision 3,
1.8is amended to read:
1.9 Subd. 3. Asset limitations for individuals and families. (a) To be eligible for
1.10medical assistance, a person must not individually own more than $3,000 in assets, or if a
1.11member of a household with two family members, husband and wife, or parent and child,
1.12the household must not own more than $6,000 in assets, plus $200 for each additional
1.13legal dependent. In addition to these maximum amounts, an eligible individual or family
1.14may accrue interest on these amounts, but they must be reduced to the maximum at the
1.15time of an eligibility redetermination. The accumulation of the clothing and personal
1.16needs allowance according to section
1.17the time of the eligibility redetermination. The value of assets that are not considered in
1.18determining eligibility for medical assistance is the value of those assets excluded under
1.19the supplemental security income program for aged, blind, and disabled persons, with
1.20the following exceptions:
1.21(1) household goods and personal effects are not considered;
1.22(2) capital and operating assets of a trade or business that the local agency determines
1.23are necessary to the person's ability to earn an income are not considered;
1.24(3) motor vehicles are excluded to the same extent excluded by the supplemental
1.25security income program;
2.1(4) assets designated as burial expenses are excluded to the same extent excluded by
2.2the supplemental security income program. Burial expenses funded by annuity contracts
2.3or life insurance policies must irrevocably designate the individual's estate as contingent
2.4beneficiary to the extent proceeds are not used for payment of selected burial expenses;
2.5(5) for a person who no longer qualifies as an employed person with a disability due
2.6to loss of earnings, assets allowed while eligible for medical assistance under section
2.8of ineligibility as an employed person with a disability, to the extent that the person's total
2.9assets remain within the allowed limits of section
2.10(d)
2.11(6) when a person enrolled in medical assistance under section 256B.057,
2.12subdivision 9, reaches age 65 and has been enrolled during each of the 24 consecutive
2.13months before the person's 65th birthday, the assets owned by the person and the person's
2.14spouse must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph
2.15(c), when determining eligibility for medical assistance under section 256B.055,
2.16subdivision 7. The income of a spouse of a person enrolled in medical assistance under
2.17section 256B.057, subdivision 9, during each of the 24 consecutive months before the
2.18person's 65th birthday must be disregarded when determining eligibility for medical
2.19assistance under section 256B.055, subdivision 7, when the person reaches age 65. This
2.20clause does not apply at the time the person or the person's spouse requests medical
2.21assistance payment for long-term care services.
2.22(b) No asset limit shall apply to persons eligible under section
2.2315.
2.24 Sec. 2. Minnesota Statutes 2011 Supplement, section 256B.057, subdivision 9, is
2.25amended to read:
2.26 Subd. 9. Employed persons with disabilities. (a) Medical assistance may be paid
2.27for a person who is employed and who:
2.28(1) but for excess earnings or assets, meets the definition of disabled under the
2.29Supplemental Security Income program;
2.30
2.31
2.32
2.33 (b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible
2.34for medical assistance under this subdivision, a person must have more than $65 of earned
2.35income. Earned income must have Medicare, Social Security, and applicable state and
3.1federal taxes withheld. The person must document earned income tax withholding. Any
3.2spousal income or assets shall be disregarded for purposes of eligibility and premium
3.3determinations.
3.4(c) After the month of enrollment, a person enrolled in medical assistance under
3.5this subdivision who:
3.6(1) is temporarily unable to work and without receipt of earned income due to a
3.7medical condition, as verified by a physician; or
3.8(2) loses employment for reasons not attributable to the enrollee, and is without
3.9receipt of earned income may retain eligibility for up to four consecutive months after the
3.10month of job loss. To receive a four-month extension, enrollees must verify the medical
3.11condition or provide notification of job loss. All other eligibility requirements must be met
3.12and the enrollee must pay all calculated premium costs for continued eligibility.
3.13(d) For purposes of determining eligibility under this subdivision, a person's assets
3.14must not exceed $20,000, excluding:
3.15(1) all assets excluded under section
3.16(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans,
3.17Keogh plans, and pension plans;
3.18(3) medical expense accounts set up through the person's employer; and
3.19(4) spousal assets, including spouse's share of jointly held assets.
3.20(e) All enrollees must pay a premium to be eligible for medical assistance under this
3.21subdivision, except as provided under section
3.22(1) An enrollee must pay the greater of a $65 premium or the premium calculated
3.23based on the person's gross earned and unearned income and the applicable family size
3.24using a sliding fee scale established by the commissioner, which begins at one percent of
3.25income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of
3.26income for those with incomes at or above 300 percent of the federal poverty guidelines.
3.27(2) Annual adjustments in the premium schedule based upon changes in the federal
3.28poverty guidelines shall be effective for premiums due in July of each year.
3.29(3) All enrollees who receive unearned income must pay five percent of unearned
3.30income in addition to the premium amount, except as provided under section
3.31subdivision 18b
3.32(4) Increases in benefits under title II of the Social Security Act shall not be counted
3.33as income for purposes of this subdivision until July 1 of each year.
3.34(f) A person's eligibility and premium shall be determined by the local county
3.35agency. Premiums must be paid to the commissioner. All premiums are dedicated to
3.36the commissioner.
4.1(g) Any required premium shall be determined at application and redetermined at
4.2the enrollee's six-month income review or when a change in income or household size is
4.3reported. Enrollees must report any change in income or household size within ten days
4.4of when the change occurs. A decreased premium resulting from a reported change in
4.5income or household size shall be effective the first day of the next available billing month
4.6after the change is reported. Except for changes occurring from annual cost-of-living
4.7increases, a change resulting in an increased premium shall not affect the premium amount
4.8until the next six-month review.
4.9(h) Premium payment is due upon notification from the commissioner of the
4.10premium amount required. Premiums may be paid in installments at the discretion of
4.11the commissioner.
4.12(i) Nonpayment of the premium shall result in denial or termination of medical
4.13assistance unless the person demonstrates good cause for nonpayment. Good cause exists
4.14if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to
4.15D, are met. Except when an installment agreement is accepted by the commissioner,
4.16all persons disenrolled for nonpayment of a premium must pay any past due premiums
4.17as well as current premiums due prior to being reenrolled. Nonpayment shall include
4.18payment with a returned, refused, or dishonored instrument. The commissioner may
4.19require a guaranteed form of payment as the only means to replace a returned, refused,
4.20or dishonored instrument.
4.21(j) The commissioner shall notify enrollees annually beginning at least 24 months
4.22before the person's 65th birthday of the medical assistance eligibility rules affecting
4.23income, assets, and treatment of a spouse's income and assets that will be applied upon
4.24reaching age 65.
4.25(k) For enrollees whose income does not exceed 200 percent of the federal poverty
4.26guidelines and who are also enrolled in Medicare, the commissioner shall reimburse
4.27the enrollee for Medicare part B premiums under section
4.28paragraph (a).
4.29 Sec. 3. APPROPRIATION.
4.30$....... is appropriated from the general fund to the commissioner of human services
4.31for fiscal year 2013 for the purposes of sections 1 and 2.
