HF 648 (LSB 1066HV (1) 86)

HOUSE FILE 648

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO HF 198)

A BILL FOR

An Act relating to Medicaid special needs trusts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 633C.1, subsection 8, Code 2015, is amended by striking the subsection.
    Sec. 2.  Section 633C.2, Code 2015, is amended by striking the section and inserting in lieu thereof the following:
   633C.2  Disposition of medical assistance special needs trusts.

   Any income or assets added to or received by and any income or principal retained in a medical assistance special needs trust shall be used in accordance with a standard that is no more restrictive than specified under federal law. The department shall adopt rules pursuant to chapter 17A for the establishment and disposition of medical assistance special needs trusts in accordance with this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill amends provisions relating to Medicaid special needs trusts. The bill eliminates the definition of “special needs of the beneficiary attributable to the beneficiary’s disability” which was the basis for the specifications for the disposition of the corpus of the trust, and replaces these specifications with a requirement that any income or assets added to or received by and any income or principal retained in a medical assistance special needs trust shall be used in accordance with a standard that is no more restrictive than specified under federal law for such trusts. The bill directs the department of human services to adopt rules pursuant to Code chapter 17A for the establishment and disposition of medical assistance special needs trusts in accordance with the specifications of the bill.