STATE OF OKLAHOMA

1st Session of the 52nd Legislature (2009)

SENATE BILL 387	By:	Ivester

AS INTRODUCED

An Act relating to public health and safety; amending Sections 2, 3 and 4, Chapter 283, O.S.L. 2004 (63 O.S. Supp. 2008, Sections 1-1955.2, 1-1955.3 and 1-1955.4), which relate to the Oklahoma Long-Term Care Partnership Act; modifying definition; directing certain resources to not be considered in certain circumstances; directing the Oklahoma Health Care Authority to provide for asset disregard for certain persons; making certain persons eligible for specified assistance; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     Section 2, Chapter 283, O.S.L. 2004 (63 O.S. Supp. 2008, Section 1-1955.2), is amended to read as follows:
Section 1-1955.2  As used in the Oklahoma Long-Term Care Partnership Act, unless the context clearly indicates otherwise:
1.  “Asset disregard” means the total assets an individual owns and may retain upon application for the state Medicaid program and still qualify for benefits if the individual:
a.	is a beneficiary of a Long-Term Care Partnership Program approved policy or other long-term care policy issued prior to the availability of Long-Term Care Partnership Program approved policies, and
b.	has exhausted the benefits of such policy.
Asset disregard is increased by One Dollar ($1.00) for each One Dollar ($1.00) of benefit paid out under the individual’s long-term insurance policy if the individual purchased the policy through the Oklahoma Long-Term Care Partnership Program or if the individual purchased a long-term care policy prior to the availability of Long-Term Care Partnership Program approved policies;
2.  “Authority” means the Oklahoma Health Care Authority;
3.  “State Medicaid program” means the federal medical assistance program established under Title XIX of the Social Security Act; and
4.  “Oklahoma Long-Term Care Partnership Program approved policy” means a long-term care insurance policy that is approved by the Insurance Department and provided through state-approved long-term care insurers through the Oklahoma Long-Term Care Partnership Program.
SECTION 2.     AMENDATORY     Section 3, Chapter 283, O.S.L. 2004 (63 O.S. Supp. 2008, Section 1-1955.3), is amended to read as follows:
Section 1-1955.3  A.  Upon repeal of the restrictions to asset protection contained in the Omnibus Budget Reconciliation Act of 1993, Public Law 103-66, 107 Stat. 312, there shall be established the Oklahoma Long-Term Care Partnership Program, to be administered by the Oklahoma Health Care Authority, with the assistance of the Insurance Department, to do the following:
1.  Provide incentives for individuals to insure against the costs of providing for their long-term care needs;
2.  Provide a mechanism for individuals to qualify for coverage of the cost of their long-term care needs under the state Medicaid program without first being required to substantially exhaust their resources;
3.  Provide counseling services to individuals in planning for their long-term care needs; and
4.  Alleviate the financial burden on the state’s Medicaid program by encouraging the pursuit of private initiatives.
B.  Upon exhaustion of benefits under a Long-Term Care Partnership Program policy or other long-term care policy issued prior to the availability of Long-Term Care Partnership Program policies, certain resources of an individual, as described in subsection C of this section, shall not be considered by the Authority when determining any of the following:
1.  Medicaid eligibility;
2.  The amount of any Medicaid payment; and
3.  Any subsequent recovery by the state of a payment for medical services.
C.  The Oklahoma Health Care Authority shall amend the state Medicaid program to allow for asset disregard.  The Authority shall provide for asset disregard by counting insurance benefits paid under a policy toward asset disregard to the extent the payments are for covered services under the Oklahoma Long-Term Care Partnership Program for purchasers of an Oklahoma Long-Term Care Partnership Program approved policy or other long-term care policy issued prior to the availability of Oklahoma Long-Term Care Partnership Program approved policies.
SECTION 3.     AMENDATORY     Section 4, Chapter 283, O.S.L. 2004 (63 O.S. Supp. 2008, Section 1-1955.4), is amended to read as follows:
Section 1-1955.4  A.  An individual who is a beneficiary of an Oklahoma Long-Term Care Partnership Program approved policy or other long-term care policy issued prior to the availability of Oklahoma Long-Term Care Partnership Program approved policies is eligible for assistance under the state Medicaid program using asset disregard pursuant to the provisions of subsection C of Section 3 1-1955.3 of the Oklahoma Long-Term Care Partnership Act this title.
B.  If the Oklahoma Long-Term Care Partnership Program is discontinued, an individual who purchased an Oklahoma Long-Term Care Partnership Program approved policy prior to the date the program was discontinued shall be eligible to receive asset disregard.
C.  The Oklahoma Health Care Authority may enter into reciprocal agreements with other states to extend the asset disregard to residents of the state who purchase long-term care policies in another state which has an asset disregard program that is substantially similar to the asset disregard program as established under the Oklahoma Long-Term Care Partnership Act.
SECTION 4.  This act shall become effective November 1, 2009.

52-1-1386	JM	1/6/2009 10:03:35 AM