Bill Text: NJ S885 | 2020-2021 | Regular Session | Introduced
Bill Title: Limits authority of DHS to impose liens and seek recovery from Medicaid recipient's estate after death.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-27 - Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [S885 Detail]
Download: New_Jersey-2020-S885-Introduced.html
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Limits authority of DHS to impose liens and seek recovery from Medicaid recipient's estate after death.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning liens imposed and recovery sought from Medicaid recipient's estate after death and amending P.L.1979, c.365.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1979, c.365 (C.30:4D-7.2) is amended to read as follows:
7. a. (1) [A lien may be filed against and recovery sought from the estate of a deceased recipient for assistance correctly paid or to be paid on his behalf for all services received when he was 65 years of age or older, except as provided in section 1 of P.L.1981, c.217 (C.30:4D-7.2a).] (deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
(2) In the case of a recipient who became deceased on or after April 1, 1995 for whom a Medicaid payment was made on or after October 1, 1993, a lien may be filed against and recovery sought from the estate of the deceased recipient for assistance correctly paid or to be paid on [his] the recipient's behalf for [all services] nursing facility services, home and community-based services, and hospital and prescription drug services provided concurrently with nursing facility or home and community-based services received when [he] the recipient was 55 years of age or older, except as provided in section 1 of P.L.1981, c.217 (C.30:4D-7.2a).
(3) As used in this section, "estate" includes all real and personal property and other assets included in the recipient's estate as defined in N.J.S.3B:1-1[, as well as any other real and personal property and other assets in which the recipient had any legal title or interest at the time of death, to the extent of that interest, including assets conveyed to a survivor, heir or assign of the recipient through joint tenancy, tenancy in common, survivorship, life estate, living trust or other arrangement].
"Estate" shall not include amounts received as reparations or restitution for the loss of liberty or damage to health by the victims of National Socialist persecution; returns of tangible or intangible property seized, misappropriated or lost as a result of National Socialist actions or policies and any cash values in replacement of such property; payments of insurance policies purchased by the victims of National Socialist persecution; and any accumulated or accrued interest on such amounts. National Socialist actions or policies include, but are not limited to, actions and policies taken by Germany and other countries, or by organizations and institutions within those countries, against the victims of the Nazi Holocaust.
b. A lien may be filed by the division against a third party's property, whether real or personal, or against any interest or estate in property, whether vested or contingent.
Subject to section 6 of P.L.1979, c.365 (C.30:4D-7.1), any third party recovery obtained by the division under this subsection shall not be reduced by any counsel fees, costs, or other expenses, or portions thereof, incurred by the recipient or the recipient's attorney.
c. A certificate of debt may be filed by the division against such parties and in such a manner as is specified in subsection (h) of section 17 of P.L.1968, c.413 (C.30:4D-17).
d. (1) A lien, claim or encumbrance imposed by this act shall be deemed a preferred claim against the recipient's estate and shall have a priority equivalent to that under subsection d. of N.J.S.3B:22-2.
(2) In the case of a recipient who became deceased on or after the effective date of P.L.1995, c.289, a lien, claim or encumbrance imposed pursuant to this section shall be deemed a preferred claim against the recipient's estate and shall have a priority equivalent to that under subsection c. of N.J.S.3B:22-2.
(cf: P.L.2015, c.124, s.2)
2. The Commissioner of Human Services shall apply for such State plan amendments or waivers as may be necessary to implement the provisions of this act and to secure federal financial participation for State Medicaid expenditures under the federal Medicaid program.
3. This act shall take effect immediately.
STATEMENT
This bill amends the law governing the State's Medicaid estate recovery program and limits the authority of the Division of Medical Assistance and Health Services (DMAHS) in the Department of Human Services to impose a lien and seek recovery from a Medicaid recipient's estate after death. This bill is designed to allow Medicaid recipients to preserve certain assets and savings for their heirs, while also meeting the minimum federal requirements for the State's Medicaid estate recovery program pursuant to the "Omnibus Budget Reconciliation Act of 1993," Pub.L.103-66.
Currently, New Jersey's Medicaid estate recovery program pursues recovery of payments provided through the Medicaid program for all services received on or after the age of 55. Under this bill, the DMAHS would be limited to pursuing recovery for costs associated with nursing facility services, home and community-based services, and hospital and prescription drug services provided concurrently with nursing facility or home and community-based services received on or after the age of 55.
Additionally, this bill would restrict the definition of "estate" to real and personal property and other assets included in the Medicaid recipient's estate as defined in N.J.S.3B:1-1. In doing so, recovery would be limited to all property and assets that pass from a deceased person to his or her heirs under probate law. Currently, the New Jersey Medicaid estate recovery program utilizes an expanded definition of "estate" which enables DMAHS to also recover from some or all property that bypasses probate, such as life insurance, pension benefits, retirement accounts, and jointly owned real estate and accounts.
Finally, the bill makes technical corrections by revising the use of pronouns and removing certain statutory language that no longer applies under current law.
