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art.019/2/027/3/027/2/027/1

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     ARTICLE 19

RELATING TO MEDICAL ASSISTANCE RECOVERIES

     SECTION 1. Chapter 34-4 of the General Laws entitled "Estates in Real Property" is

hereby amended by adding thereto the following section:

     34-4-2.1. Reservation of Life Estate with enhanced powers. -- A grantor may convey

title to real estate and reserve a life estate therein, coupled with the reserved power and authority,

during his or her lifetime, to sell, convey, mortgage, or otherwise dispose of the real property

without the consent or joinder by the holder(s) of the remainder interest. A duly-executed

conveyance by the life tenant exercising such reserved powers shall, upon recording, vest good

title to the interest conveyed in the grantee thereof, free and clear of any right, title and interest of

the holder(s) of the remainder interest without the necessity of any additional conveyance by any

such holder(s) of the remainder interest.

     SECTION 2. Section 40-6-9 of the General Laws in Chapter 40-6 entitled "Public

Assistance Act" is hereby amended to read as follows:

     40-6-9. Assignment and subrogation for recovery of child, spousal and medical

support rights. -- (a) An applicant for or recipient of public assistance under this chapter or

under title XIX of the federal Social Security Act, 42 U.S.C. § 1396 et seq., for and on behalf of

himself or herself and for and on behalf of a child or children, shall be deemed, without the

necessity of signing any document for purposes of recovery, to have made an assignment and

given a right of subrogation to the executive office of health and human services and/or the

department of human services, as applicable, of any and all rights and interests in any cause of

action, past, present, or future, that the applicant or recipient may have against any person failing

to or obligated to provide for the support, maintenance, and medical care of the applicant,

recipient, and/or minor child or children, for the period of time that assistance is being paid by the

executive office of health and human services and/or the department. The executive office of

health and human services and/or the department shall be subrogated to any and all rights, title,

and interest the applicant or recipient may have against any and all property belonging to the

obligated or non-supporting person in the enforcement of any claim for child, spousal, and

medical support, whether liquidated through court order or not. The applicant or recipient shall

also be deemed, without the necessity of signing any document, to have appointed the executive

office of health and human services and/or the department of human services as his or her true

and lawful attorney in fact to act in his or her name, place, and stead to perform the specific act of

instituting suit to establish paternity or secure support and medical care, collecting any and all

amounts due and owing for child, spousal, and medical support, endorsing any and all drafts,

checks, money orders, or other negotiable instruments representing support payments which are

received by executive office of health and human services and/or the department, and retaining

any portion thereof permitted under federal and state statutes as reimbursement for financial, and

medical and any other assistance previously paid to or for the recipient, child, or children.

     (b) An applicant for or a recipient of medical assistance provided by executive office of

health and human services and/or the department pursuant to this chapter or chapter 8 of this title

or title XIX of the federal Social Security Act, 42 U.S.C. § 1396 et seq., for and on behalf of

himself or herself, and for and on behalf of any other person for whom he or she may legally

assign rights to any medical support or any other medical care, shall be deemed, without the

necessity of signing any document for purposes of reimbursement, to have made an assignment

and given a right of subrogation to executive office of health and human services and/or the

department of human services of any and all rights and interests that he, she, or such other person

may have: (1) to payment for any medical support; and (2) to any payment for any medical care

from any third party that has a legal liability to pay for care and services available and provided to

the applicant or recipient. The executive office of health and human services and/or the

department of human services shall, in accordance with this section and all applicable state and

federal laws, be entitled to any payments by a third party to recover costs from the full amount of

an applicant's or recipient's liability settlement(s). For this purpose, the executive office of health

and human services may place a lien against an applicant's or recipient's liability settlement(s).

     (c) In addition to the assignments and subrogation rights provided in subsections (a) and

(b) of this section, an applicant for or a recipient of financial assistance provided by the executive

office of health and human services and/or department pursuant to this chapter, whenever the

assistance is necessary by reason of accident, injury, or illness for which a third party may be

liable, for and on behalf of himself or herself, and for and on behalf of any other person for whom

he or she may legally act, shall be deemed, without the necessity of signing any document, to

have assigned and subrogated to the executive office of health and human services and/or the

department of human services, from amounts recovered or recoverable from any third party, an

amount of money equal to the amount of financial assistance provided as a result of the accident,

illness, or injury.

     (d) With respect to an assignment and subrogation rights established pursuant to this

section, an applicant or recipient shall provide to the executive office of health and human

services and/or the department of human services all relevant information regarding the assigned

and subrogated rights, and shall execute any documents relating thereto, in accordance with rules

and regulations to be adopted by the executive office of health and human services and/or the

department.

     (e) With respect to any assignment and subrogation rights for medical or financial

support or other recoveries under this section, the executive office of health and human services

and/or the department of human services shall be considered to have acquired the rights of such

individual to payment by any third party for such medical care and support, and financial support

and other recoveries.

     (f) An applicant for or a recipient of medical assistance provided by the executive office

of health and human services in accordance with chapter 40-8 shall also be subject to the

provisions of chapter 27-57.1. Funds available to be paid for the payment of child support shall

supersede any payment made pursuant to this chapter and chapter 27-57.1.

     (g) The executive office of health and human services and/or the department of human

services shall, in accordance with this section and all applicable state and federal laws, be entitled

to any payments by a third party to recover costs from the full amount of an applicant's or

recipient's liability settlement(s). For this purpose, the executive office of health and human

services may place a lien against an applicant's or recipient's liability settlement(s). Nothing in

these sections shall limit the executive office of health and human services and/or the department

of human services from recovery, to the extent of the distribution, in accordance with all state and

federal laws.

     SECTION 3. Chapter 40-8 of the General Laws entitled "Medical Assistance" is hereby

amended by adding thereto the following section:

     40-8-3.1. Life estate in property-retained powers. – When an applicant or recipient of

Medicaid owns a life estate in property that is his or her principal place of residence with the

reserved power and authority, during his or her lifetime, to sell, convey, mortgage, or otherwise

dispose of the real property without the consent or joinder by the holder(s) of the remainder

interest, said principal place of residence shall not be regarded as an excluded resource for the

purpose of Medicaid eligibility, unless the applicant or recipient individually or through his or her

guardian, conservator or attorney in fact, conveys all outstanding remainder interest to him or

herself.

     An applicant or recipient who, by a deed created, executed and recorded on or before

June 30, 2014, has reserved a life estate in property that is his or her principal place of residence

with the reserved power and authority, during his or her lifetime, to sell, convey, mortgage, or

otherwise dispose of the real property without the consent or joinder by the holder(s) of the

remainder interest, shall not be ineligible for Medicaid on the basis of such deed, regardless of

whether the transferee of such remainder interest is a person or persons, trust or entity.

     SECTION 4. Section 2 of this article shall take effect as of October 1, 2016. The

remainder of this article shall take effect upon passage.