2014 -- S 2620

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LC004481

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO HUMAN SERVICES - MEDICAL ASSISTANCE

     Introduced By: Senator Michael J.McCaffrey

     Date Introduced: March 04, 2014

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 40-8-15 of the General Laws in Chapter 40-8 entitled "Medical

Assistance" is hereby amended to read as follows:

     40-8-15. Lien on deceased recipient's estate for assistance. -- (a) (1) Upon the death of

a recipient of medical assistance under Title XIX of the federal Social Security Act, 42 U.S.C.

section 1396 et seq., the total sum of medical assistance so paid on behalf of a recipient who was

fifty-five (55) years of age or older at the time of receipt of the assistance shall be and constitute a

lien upon the estate, as defined in subdivision (a)(2) below, of the recipient in favor of the

executive office of health and human services. The lien shall not be effective and shall not attach

as against the estate of a recipient who is survived by a spouse, or a child who is under the age of

twenty-one (21), or a child who is blind or permanently and totally disabled as defined in Title

XVI of the federal Social Security Act, 42 U.S.C. section 1381 et seq. The lien shall attach

against property of a recipient, which is included or includible in the decedent's probate estate,

regardless of whether or not a probate proceeding has been commenced in the probate court by

the executive office of health and human services or by any other party. Provided, however, that

such lien shall only attach and shall only be effective against the recipient's real property included

or includible in the recipient's probate estate if such lien is recorded in the land evidence records

and is in accordance with subsection 40-8-15(f). Decedents who have received medical assistance

are subject to the assignment and subrogation provisions of sections 40-6-9 and 40-6-10.

      (2) For purposes of this section, the term "estate" with respect to a deceased individual

shall include all real and personal property and other assets included or includable within the

individual's probate estate.

      (b) The executive office of health and human services is authorized to promulgate

regulations to implement the terms, intent, and purpose of this section and to require the legal

representative(s) and/or the heirs-at-law of the decedent to provide reasonable written notice to

the executive office of health and human services of the death of a recipient of medical assistance

who was fifty-five (55) years of age or older at the date of death, and to provide a statement

identifying the decedent's property and the names and addresses of all persons entitled to take any

share or interest of the estate as legatees or distributees thereof.

      (c) The amount of medical assistance reimbursement imposed under this section shall

also become a debt to the state from the person or entity liable for the payment thereof.

      (d) Upon payment of the amount of reimbursement for medical assistance imposed by

this section, the secretary of the executive office of health and human services, or his or her

designee, shall issue a written discharge of lien.

      (e) Provided, however, that no lien created under this section shall attach nor become

effective upon any real property unless and until a statement of claim is recorded naming the

debtor/owner of record of the property as of the date and time of recording of the statement of

claim, and describing the real property by a description containing all of the following: (1) tax

assessor's plat and lot; and (2) street address. The statement of claim shall be recorded in the

records of land evidence in the town or city where the real property is situated. Notice of said lien

shall be sent to the duly appointed executor or administrator, the decedent's legal representative,

if known, or to the decedent's next of kin or heirs at law as stated in the decedent's last application

for medical assistance.

      (f) The executive office of health and human services shall establish procedures, in

accordance with the standards specified by the secretary, U.S. Department of Health and Human

Services, under which the executive office of health and human services shall waive, in whole or

in part, the lien and reimbursement established by this section if such lien and reimbursement

would work an undue hardship, as determined by the executive office of health and human

services, on the basis of the criteria established by the secretary in accordance with 42 U.S.C.

section 1396p(b)(3).

      (g) Upon the filing of a petition for admission to probate of a decedent's will or for

administration of a decedent's estate, Within a reasonable period of time after the qualification of

an executor or administrator, when the decedent was fifty-five (55) years or older at the time of

death, a copy of said petition the petition for probate or administration and a copy of the death

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certificate shall be sent to the executive office of health and human services. Within thirty (30)

days of a request by the executive office of health and human services, an executor or

administrator shall complete and send to the executive office of health and human services a form

prescribed by that office and shall provide such additional information as the office may require.

In the event a petitioner fails to send a copy of the petition and a copy of the death certificate to

the executive office of health and human services and a decedent has received medical assistance

for which the executive office of health and human services is authorized to recover, no

distribution and/or payments, including administration fees, shall be disbursed. Any person and/or

entity that receives a distribution of assets from the decedent's estate shall be liable to the

executive office of health and human services to the extent of such distribution.

      (h) Compliance with the provisions of this section shall be consistent with the

requirements set forth in section 33-11-5, the duty to notify known or reasonably ascertainable

creditors set forth in § 33-11-5.1, and the requirements of the affidavit of notice set forth in

section 33-11-5.2. Nothing in these sections shall limit the executive office of health and human

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

laws.

     SECTION 2. This act shall take effect upon passage and shall apply to all pending and

future estates.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES - MEDICAL ASSISTANCE

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     This act would coordinate the provisions of R.I.G.L. § 40-8-15 with the notice

requirements of R.I.G.L. § 33-11-5.1 and would provide that notice of the pendency of probate of

a person who was fifty-five (55) years of age or older, presently due upon the filing of a probate

petition, would be due to the executive office of health and human services within a reasonable

time after the appointment of an executor or administrator.

      This act would take effect upon passage, and would apply to all pending and future

estates.

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