HSB 515 (LSB 5374DP (5) 83)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF INSPECTIONS AND APPEALS BILL)

A BILL FOR

An Act relating to transfer of assets provisions under the medical assistance program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 249F.1, subsection 2, paragraph a, Code 2009, is amended to read as follows:
   a.  “Transfer of assets” means any transfer or assignment of a legal or equitable interest in property, as defined in section 702.14, from a transferor to a transferee for less than fair consideration, made while the transferor is receiving medical assistance or within five years prior to application for medical assistance by the transferor. Any such transfer or assignment is presumed to be made with the intent, on the part of the transferee; transferor; or another person acting on behalf of a transferor who is an actual or implied agent, guardian, attorney-in-fact, or person acting as a fiduciary, of enabling the transferor to obtain or maintain eligibility for medical assistance or of impacting the recovery or payment of a medical assistance debt. This presumption is rebuttable only by clear and convincing evidence that the transferor’s eligibility or potential eligibility for medical assistance or the impact on the recovery or payment of a medical assistance debt was no part of the transferee’s reason of the transferee; transferor; or other person acting on behalf of a transferor who is an actual or implied agent, guardian, attorney-in-fact, or person acting as a fiduciary for making or accepting the transfer or assignment.  A transfer of assets includes a transfer of an interest in the transferor’s home, domicile, or land appertaining to such home or domicile while the transferor is receiving medical assistance, unless otherwise exempt under paragraph “b”.
    Sec. 2.  Section 249F.1, subsection 2, paragraph b, subparagraph (6), Code 2009, is amended to read as follows:
   (6)  Transfers of assets that would, at the time of the transferor’s application for medical assistance, have been exempt from consideration as a resource if retained by the transferor, pursuant to 42 U.S.C. § 1382b(a), as implemented by regulations adopted by the secretary of the United States department of health and human services, excluding the home and land appertaining to the home.
EXPLANATION
   This bill amends the definition of “transfer of assets” for the purpose of eligibility for the medical assistance (Medicaid) program. The bill amends the definition to provide that any transfer or assignment of a legal or equitable interest in property, from a transferor to a transferee for less than fair consideration, made while the transferor is receiving medical assistance or within five years prior to application for medical assistance by the transferor, is presumed to be made with the intent, on the part of not only the transferee, but also the transferor; or another person acting on behalf of a transferor who is an actual or implied agent, guardian, attorney-in-fact, or person acting as a fiduciary, of enabling the transferor to obtain or maintain eligibility for medical assistance or of impacting the recovery or payment of a medical assistance debt. The presumption is then rebuttable only by clear and convincing evidence that the transferor’s eligibility or potential eligibility for Medicaid or the impact on the recovery or payment of a medical assistance debt was no part of the reason of not only the transferee, but any of the other parties specified for making or accepting the transfer or assignment. 
   The bill provides that a transfer of assets includes a transfer of an interest in the transferor’s home, domicile, or land appertaining to such home or domicile while the transferor is receiving medical assistance, unless otherwise exempt.
   The bill amends the listing of transfers that are exempt from the definition to provide that a transfer of assets that would have been exempt from consideration as a resource if retained by the transferor pursuant to federal law does not include a transfer of the home or land appertaining to the home.