March 7, 2006, Introduced by Rep. Kolb and referred to the Committee on Senior Health, Security, and Retirement.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding sections 112g, 112h, 112i, and
112j.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 112g. (1) Subject to section 112c(4) and except as
provided in section 112c(5)(b), the department shall establish and
operate the Michigan estate recovery program to comply with
requirements contained in section 1917 of title XIX.
(2) The department shall establish an estate recovery program
or contract various estate recovery program activities. These
activities shall include, at a minimum, all of the following:
(a) Placing and recording liens on medical assistance
recipient property to the extent permitted by section 1917(a) of
title XIX.
(b) Tracking assets and services of recipients of medical
assistance that are subject to estate recovery.
(c) Actions necessary to collect amounts subject to estate
recovery for medical services as determined according to subsection
(3)(a) provided to recipients identified in subsection (3)(b).
Amounts subject to recovery shall be equal to the cost of providing
the medical services. The medicaid estate recovery program may
negotiate accelerated settlements of estate recovery claims with
the spouses and heirs of recipients subject to estate recovery if
the recipient is unlikely to return to his or her home. The
settlements shall take into account the best interests of the state
and the spouse and heirs.
(d) Perform other activities necessary to efficiently and
effectively administer the program, including receiving information
and notices received under section 2843 of the public health code,
1978 PA 368, MCL 333.2843.
(3) The department shall seek appropriate changes to the
medicaid state plan and shall apply for any necessary waivers and
approvals from the federal centers for medicare and medicaid
services to implement the Michigan estate recovery program. The
department shall seek approval from the federal centers for
medicare and medicaid regarding all of the following:
(a) Which medical services are subject to estate recovery
under section 1917(b)(1)(B)(i) and (ii) of title XIX.
(b) Which recipients of medical assistance are subject to
estate recovery under section 1917(a) and (b) of title XIX.
(c) Under what circumstances the program shall pursue recovery
from the estates of spouses of recipients of medical assistance who
are subject to estate recovery under section 1917(b)(2) of title
XIX.
(d) The maximum divestiture look back period for assets that
are subject to estate recovery under section 1917(c) of title XIX,
including assets placed in trusts by the medical assistance
recipient and are transferred for less than fair market value.
(e) What actions may be taken to obtain funds from the estates
of recipients subject to recovery under section 1917 of title XIX,
including notice and hearing procedures that may be pursued to
contest actions taken under the medicaid estate recovery program.
(f) Under what circumstances recipients will be exempt from
the medicaid estate recovery program because of a hardship. The
department shall develop a definition of hardship according to
section 1917(b)(3) of title XIX. The provisions of section
1396p(b)(3) of title XIX shall be implemented to ensure that the
heirs of persons subject to the medicaid estate recovery program
will not be unreasonably harmed by the provisions of this program.
(g) The department shall not seek medicaid estate recovery if
the costs of recovery exceed the amount of recovery available or if
the recovery is not in the best economic interest of the state.
(4) The department shall not implement a medicaid estate
recovery program until approval by the federal government is
obtained.
Sec. 112h. For the purposes of sections 112g to 112j, "estate"
and "property" mean those terms as defined in sections 1104 and
1106 of the estates and protected individuals code of 1998, 1998 PA
386, MCL 700.1104 and 700.1106.
Sec. 112i. Revenue collected through medicaid estate recovery
activities shall be used to fund the activities of the medicaid
estate recovery program. Any remaining balances shall be treated as
an expenditure credit in the medical services appropriation unit of
the annual department of community health appropriation.
Sec. 112j. The department may promulgate rules for the
medicaid estate recovery program according to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5828(request no.
02540'05).
(b) Senate Bill No.____ or House Bill No. 5829(request no.
02541'05).