2013 -- S 0656

=======

LC01681

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - MEDICAL ASSISTANCE

     Introduced By: Senators McCaffrey, and Walaska

     Date Introduced: March 06, 2013

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Chapter 40-8 of the General Laws entitled "Medical Assistance" is hereby

1-2

amended by adding thereto the following section:

1-3

     40-8-3.1 Life Estate in Property-Retained Powers.-- As a condition of eligibility for

1-4

medical assistance, every applicant or recipient who owns a life estate in property with retained

1-5

rights to revoke, amend or redesignate the remainderman must exercise those rights as directed by

1-6

the executive office of health and human services. The acceptance of medical assistance shall be

1-7

an assignment by operation of law to the executive office of health and human services of any

1-8

right to revoke, amend or redesignate the remainderman of a life estate in property. Any property

1-9

subject to the assignment provisions of this section is consistent and subject to the assignment and

1-10

subrogation provisions of section 40-6-9, the lien provisions of section 40-8-15 and any remedy

1-11

provided by applicable state and federal laws and rules and regulations. These provisions shall

1-12

apply to any life estate created, executed and/or recorded on or after the statutory effective date of

1-13

this section.

1-14

     SECTION 2. Chapter 42-7.2 of the General Laws entitled "Office of Health and Human

1-15

Services" is hereby amended by adding thereto the following section:

1-16

     42-7.2-18. Administrative subpoena.-- (a) The executive office of health and human

1-17

services (EOHHS) and it’s departments and divisions, shall be authorized to issue subpoenas as

1-18

appropriate to the individuals and entities including, but not limited to, any state or municipal

1-19

agency, utility company, including telephone, assessor's offices, and housing authorities,

1-20

employers, professional or trade associations and labor unions, professional or trade licensing

2-1

boards, banks and other financial institutions, credit bureaus or agencies, or any other individual

2-2

or entity which the EOHHS and it’s departments and divisions has reason to believe may have

2-3

information that relates to or may assist to secure financial and other information necessary for

2-4

administrating the programs of EOHHS and it’s departments and divisions.

2-5

     (b) Any entity or individual who fails to reply to an administrative subpoena shall be

2-6

liable for a civil penalty of one hundred dollars ($100) for the violation, to be assessed by the

2-7

EOHHS or it’s departments and divisions or a Rhode Island court, and shall be required to

2-8

provide the information and/or comply with the request."

2-9

     SECTION 3. Chapter 4-61 of the General Laws entitled "State Lottery" is hereby

2-10

amended by adding thereto the following section:

2-11

     42-61-7.3. Payment of prizes in excess of six hundred dollars ($600) - Setoff for

2-12

Medical Assistance reimbursement. -- Notwithstanding the provisions of sections 42-61-7, 42-

2-13

61-7.1 and 42-61-7.2 relating to assignment of prizes and setoff for child support debts and

2-14

benefit overpayments and unpaid taxes, the following setoff provisions shall apply to the payment

2-15

of any prizes or winning ticket in excess of six hundred dollars ($600).

2-16

     (1) With respect to a person entitled to receive the prize or winning ticket who has unpaid

2-17

amounts owed to the executive office of health and human services in excess of six hundred

2-18

dollars ($600), as evidenced by the tax administrator pursuant to subdivision 42-61-7.3(3), the

2-19

lottery director:

2-20

     (i) Shall setoff against the amount due to that person after state and federal tax

2-21

withholding an amount up to the balance of the unpaid medical assistance owed as evidenced by

2-22

the executive office of health and human services pursuant to subdivision 42-61-7.3(3), and the

2-23

director shall make payment of this amount directly to the executive office of health and human

2-24

services; and

2-25

     (ii) Shall pay to that person the remaining balance of the prize or winning ticket amount,

2-26

if any, after reduction of the amount setoff above for medical assistance owed. If in any instance,

2-27

the lottery director has received notice from more than one claimant agency, the claim for child

2-28

support arrearage(s) owed to the department of human services shall receive first (1st) priority,

2-29

the claim for benefit overpayments and interest owed to the department of labor and training the

2-30

second (2nd) priority, the claim for taxes owed to the tax administrator the third (3rd) priority,

2-31

and the claim for medical assistance owed to the executive office of health and human services

2-32

the fourth (4th) priority,

2-33

     (2) The director shall be discharged of all further liability upon payment of a prize or

2-34

winning ticket pursuant to this section.

3-1

     (3) The executive office of health and human services shall periodically within each year

3-2

furnish the director with a list or compilation of names of individuals, together with any other

3-3

identifying information and in a form that the director shall require, who as of the date of the list

3-4

or compilation, have unpaid medical assistance in excess of six hundred dollars ($600).

3-5

     (4) Any party aggrieved by any action taken under this section may, within thirty (30)

3-6

days of the withholding of the payment by the lottery director, seek a review with the executive

3-7

office of health and human services, who may, in his or her discretion, issue a temporary order

3-8

prohibiting the disbursement of funds under this section, pending final decision.

3-9

     SECTION 4. This act shall take effect upon passage.

=======

LC01681

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - MEDICAL ASSISTANCE

***

4-1

     This act would provide provisions to increase recoveries for medical assistance. As a

4-2

condition of eligibility for medical assistance, every applicant or recipient who owns a life estate

4-3

in property with retained rights to revoke, amend or redesignate the remainderman must exercise

4-4

those rights as directed by the executive office of health and human services. This act also

4-5

provides EOHHS authority to issue subpoenas as appropriate to the individuals and entities which

4-6

the EOHHS and it's departments and divisions has reason to believe may have information that

4-7

relates to or may assist to secure financial and other information necessary for administrating the

4-8

EOHHS programs. The act would also authorize EOHHS to recover from lottery winning's

4-9

money's owed EOHHS for medical assistance.

4-10

     This act would take effect upon passage.

=======

LC01681

=======