You asked for a summary of the Human Services bill favorably reported to the Finance, Revenue and Bonding Committee.

The Human Services Committee favorably reported one bill to the Finance, Revenue and Bonding Committee, HB 5389.

HB 5389—AN ACT CONCERNING CLAIMS OF THE STATE FOR REPAYMENT OF AID PROVIDED TO BENEFICIARIES OF SOCIAL SERVICES PROGRAMS

The bill changes the way the state recovers public assistance (State Supplement, Medicaid, Temporary Family Assistance) provided when a recipient benefits from a lawsuit or inheritance. Specifically, it sets up a sliding scale for these recoveries, with the amount the state recovers rising as the lawsuit or inheritance benefit amount rises. Currently, the state’s share is generally the amount of assistance paid or 50% of the proceeds of the benefit, whichever is less.

The bill’s effect on the state’s recovery depends on the amount of the benefit and the assistance provided. The bill, under certain circumstances (1) decreases the state’s recovery if the benefit is less than $ 10,000 and (2) increases the recovery if a lawsuit award is $ 10,000 or more or an inheritance is $ 15,000 or more.

Federal law (42 USC § 1396p) generally limits a state’s ability to recover correctly paid Medicaid benefits to those from a decedent’s estate. Hence, recoveries that the state would attempt from Medicaid beneficiaries experiencing windfalls would be limited to the hospital costs directly connected to an accident that precipitated a lawsuit.

EFFECTIVE DATE: July 1, 2004

RC: nf