H.F. 198 Section 1. Section 633C.1, subsection 8, Code 2015, is 1 amended by striking the subsection. 2 Sec. 2. Section 633C.2, Code 2015, is amended by striking 3 the section and inserting in lieu thereof the following: 4 633C.2 Disposition of medical assistance special needs 5 trusts. 6 Any income or assets added to or received by and any income 7 or principal retained in a medical assistance special needs 8 trust shall be used in accordance with a standard that is 9 no more restrictive than specified under federal law. The 10 department shall adopt rules pursuant to chapter 17A for the 11 establishment and disposition of medical assistance special 12 needs trusts in accordance with this section. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill amends provisions relating to Medicaid special 17 needs trusts. The bill eliminates the definition of “special 18 needs of the beneficiary attributable to the beneficiary’s 19 disability” which was the basis for the specifications for the 20 disposition of the corpus of the trust, and replaces these 21 specifications with a requirement that any income or assets 22 added to or received by and any income or principal retained 23 in a medical assistance special needs trust shall be used in 24 accordance with a standard that is no more restrictive than 25 specified under federal law for such trusts. The bill directs 26 the department of human services to adopt rules pursuant to 27 Code chapter 17A for the establishment and disposition of 28 medical assistance special needs trusts in accordance with the 29 specifications of the bill. 30 -1- LSB 1066YH (3) 86 pf/nh 1/ 1