HSB 529 (LSB 5181YC (4) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON MILLER)

A BILL FOR

An Act relating to Miller trusts and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 633C.3, subsection 1, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   Regardless of the terms of a medical assistance income trust, if the beneficiary’s total monthly income is less than one hundred and twenty-five percent of the average statewide charge for nursing facility services to a private pay resident of a nursing facility, then, during the life of the beneficiary, any property received or held by the trust shall be expended only as follows, as applicable, and in the following order of priority:
    Sec. 2.  Section 633C.3, subsection 2, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   Regardless of the terms of a medical assistance income trust, if the beneficiary’s total monthly income is at or above one hundred and twenty-five percent of the average statewide charge for nursing facility services to a private-pay resident, then, during the life of the beneficiary, any property received or held by the trust shall be expended only as follows, as applicable, in the following order of priority:
    Sec. 3.  APPLICABILITY.  This Act applies to trusts in existence on or after July 1, 2014.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill increases the percentage, relative to the average statewide charge for nursing facility services to a private pay resident of a nursing facility, to which the total monthly income of a beneficiary of a Miller Trust is compared to determine how any property received or held by the trust during the life of the beneficiary is to be expended. Currently, the comparative percentage is 100 percent of the average statewide charge. The bill increases the percentage to 125 percent of the average statewide charge.
   The bill is applicable to trusts in existence on or after July 1, 2014.