Bill Text: MS SB2712 | 2012 | Regular Session | Introduced
Bill Title: Medicaid recipients; authorize Division of Medicaid to obtain asset verification from financial institutions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-06 - Died In Committee [SB2712 Detail]
Download: Mississippi-2012-SB2712-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Public Health and Welfare; Business and Financial Institutions
By: Senator(s) Kirby
Senate Bill 2712
AN ACT TO CODIFY SECTION 43-13-116.1 AND AMEND SECTION 81-5-55, MISSISSIPPI CODE OF 1972, TO REQUIRE MEDICAID RECIPIENTS TO AUTHORIZE THE DIVISION OF MEDICAID TO OBTAIN ASSET VERIFICATION FROM FINANCIAL INSTITUTIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 43-13-116.1, Mississippi Code of 1972:
43-13-116.1. (1) Pursuant to federal law, Section 1940 of the Social Security Act (42 USC 1396w), the Mississippi Division of Medicaid shall implement an asset verification program requiring each applicant for, or recipient of, medical assistance from the Division of Medicaid on the basis of being aged, blind or disabled to provide authorization by such applicant or recipient, their spouse, and by any other person whose resources are required by law to be disclosed to determine the eligibility of the applicant or recipient for such assistance, for the Division of Medicaid to obtain from any financial institution financial records and information held by any such financial institution with respect to such applicant, recipient, spouse or such other person, as applicable, which the Division of Medicaid determines are needed to verify the financial resources of the applicant, recipient or such other person in connection with a determination or redetermination with respect to eligibility for, or the amount or extent of, such medical assistance. Each aged, blind or disabled Medicaid applicant or recipient, their spouse, and any other applicable person described in this section, shall provide authorization (as specified by 42 USC 1396w(c)), to the Division of Medicaid to obtain from any financial institution, any financial record, whenever the Division of Medicaid determines the record is needed in connection with a determination or redetermination of eligibility for medical assistance.
(2) In connection with the asset verification program, the Division of Medicaid is authorized to:
(a) Develop and operate a data match system, using automated data exchanges, in which the Division of Medicaid shall provide to the financial institution, on a quarterly or more frequent basis, the name, social security number or other taxpayer identification number, and any other necessary identifying information for each applicant for or recipient of medical assistance and for each other person whose resources are required to be disclosed to determine the eligibility of the applicant or recipient for such assistance;
(b) Requires each financial institution doing business in the State of Mississippi to enter into agreements with the Division of Medicaid to engage in the data match system and also to disclose any accounts held by such institution on behalf of the persons so identified by the Division of Medicaid and, if requested by the Division of Medicaid, the account numbers, account balances, and all names and addresses and social security or other tax identification numbers on record for such accounts; and
(c) Providing for payment to the financial institution of the reasonable costs, up to Six Hundred Dollars ($600.00) per year, of the institution for conducting the data matches and for responding to other requests made pursuant to this section, in accordance with the cost reimbursement requirements of Section 1115(a) of the Federal Right to Financial Privacy Act, 12 USC Section 3415, as amended.
(3) When the operation of such data match system results in the location of an account of an applicant for or recipient of medical assistance or a person whose resources are required to be disclosed to determine the eligibility of the applicant or recipient for such assistance, the Division of Medicaid may request and the financial institution may provide such additional financial records and information held by the financial institution as the Division of Medicaid determines are needed to establish, continue, modify or terminate eligibility for medical assistance.
(4) A financial institution:
(a) Shall have no liability for failing to disclose to any account holder or depositor that the name of such person has been received from the Division of Medicaid or that the financial institution has furnished financial records or information pertaining to the account holder or depositor to the Division of Medicaid pursuant to this section;
(b) Shall have no liability for any delays, errors or omissions in conducting the data matches or in responding to other requests for records or information made pursuant to this section which delays, errors or omissions result from circumstances beyond the control of the institution or from any unintentional, bona fide error, including, but not limited to, clerical or computer malfunction or programming error; and
(c) Shall be absolutely immune from any civil or criminal liability to any person under any contract, common law, statute or regulation for the disclosure to the Division of Medicaid, or to any authorized contractor or agents thereof, of any information, accounts, assets, financial records or information pursuant to this section, the agreements referred to in subsection (3) of this section, or in response to any notice or request issued by the Division of Medicaid or by any authorized contractors or agents thereof, or for any action or omission taken or omitted in good faith to comply with the requirements of this section.
(5) Definitions. For purposes of this section:
(a) The term "financial institution" has the meaning given to such by Sections 81-3-1 and 81-12-3, Mississippi Code of 1972, and shall include, but not be limited to, credit unions, stock brokerages, public or private entities administering retirement, savings, annuities, life insurance and/or pension funds.
(b) The term "account" means a demand deposit account, checking or negotiable withdrawal order account, savings account, time deposit account or money-market account.
SECTION 2. Section 81-5-55, Mississippi Code of 1972, is amended as follows:
81-5-55. In no instance shall the name of any depositor, or the amount of his deposit, be disclosed to anyone, except to report to approved parties, such as credit bureaus, account verification services and others, the forcible closure of a deposit account due to misuse, such as fraud, kiting or chronic bad check writing or when required to be done in legal proceedings, for verification of public assistance in cases wherein the depositor has applied for public assistance and the Department of Human Services submits a written authorization executed by the depositor authorizing the receipt of such information, for verification of the financial exploitation of a vulnerable adult in cases wherein the Attorney General submits a written authorization, or in case of insolvency of banks. The parties referred to herein must be approved by the Commissioner of Banking and Consumer Finance and must satisfactorily demonstrate their reliability and credibility of their activities. Disclosure of depositor information to any affiliate or agent providing services on behalf of the bank shall not be considered disclosure of depositor information within the meaning of this section. The term "affiliate" means a corporation or business entity that controls, is controlled by or is under common control with the bank. The term "agent" means anyone who has an agreement, arrangement or understanding to transact business for the bank by the authority and on account of the bank, provided such agreement binds the agent to the same degree of confidentiality of disclosure of bank records as the bank. Any violation of this provision shall be considered a misdemeanor and, upon conviction thereof, in any court of competent jurisdiction, such person shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or imprisoned in the county jail not more than six (6) months or both, and in addition thereto, shall be liable upon his bond to any person damaged thereby.
This section shall not be construed to prohibit the disclosure, to the State Treasurer, State Auditor, Legislative Budget Office, Joint Legislative Committee on Performance Evaluation and Expenditure Review or the Department of Finance and Administration, of any information about any type of account or investment, including certificates of deposit, owned by any public entity of the State of Mississippi. In addition, this section shall not be construed to prohibit, or to impose liability for, the disclosure of information to the Department of Human Services, the Child Support Unit of the Department of Human Services, or their contractors or agents, pursuant to Chapter 19 of Title 43, Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after July 1, 2012.
