House Bill 1302

AN ACT TO AMEND SECTION 43-28-23, MISSISSIPPI CODE OF 1972, TO PROHIBIT THE STATE OR ANY AGENCY OR INSTRUMENTALITY OF THE STATE FROM SEEKING PAYMENT FOR MEDICAID BENEFITS PROVIDED TO A DESIGNATED BENEFICIARY FROM A MISSISSIPPI ABLE ACCOUNT; TO AMEND SECTIONS 43-28-17, 43-13-120 AND 43-13-317, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 43-28-23, Mississippi Code of 1972, is amended as follows:

43-28-23. (1) * * * Unless otherwise required by the United States Social Security Act, 42 USC Section 1396p(b), the State of Mississippi or any agency or instrumentality of the state, shall not be considered a creditor of, and may not seek repayment for any Medicaid benefits provided to, a designated beneficiary from a Mississippi ABLE account that is established under this chapter or its proceeds.

(2) Unless otherwise required by the United States Social Security Act, 42 USC Section 1396p(b), a Mississippi ABLE account established under this chapter or funds distributed from a Mississippi ABLE account established under this chapter upon the death of a qualified beneficiary shall not be considered part of the "estate" of the beneficiary as that term is used in Section 43-13-317.

( * * *23) The Mississippi ABLE Coordinator shall assist and cooperate with the appropriate health care administration agency and the Division of Medicaid in other states which have provided services to a Mississippi ABLE account beneficiary, by providing the agency and divisions with the information needed to accomplish the purpose and objective of this section.

SECTION 2. Section 43-28-17, Mississippi Code of 1972, is amended as follows:

43-28-17. (1) On or before July 1, 2018, the Mississippi ABLE Board shall establish and administer the Mississippi ABLE Program or shall enter into a contractual relationship or into a consortium with another state or states to provide qualifying Mississippi residents access to enrollment in an operating ABLE Program. Before implementing the program, the board shall obtain a written opinion from counsel specializing in:

(a) Federal tax matters which indicate that the Mississippi ABLE Program is designed to comply with Section 529A of the Internal Revenue Code; and

(b) Federal securities law which indicate that the Mississippi ABLE Program and the offering of participation in the program are designed to comply with applicable federal securities law and qualify for the available tax exemptions under such law.

(2) The Mississippi ABLE account participation agreement must include provisions specifying that:

(a) The participation agreement is only an obligation of the Mississippi ABLE Program and the ABLE Trust Fund and is not an obligation of the state;

(b) Participation in the Mississippi ABLE Program does not guarantee that sufficient funds will be available to cover all qualified disability expenses for any designated beneficiary and does not guarantee the receipt or continuation of any product or service for the designated beneficiary;

(c) The designated beneficiary must be a resident of this state or a resident of a contracting or consortium state at the time the ABLE account is established;

(d) The establishment of an ABLE account in violation of federal law is prohibited;

(e) Contributions in excess of the limitations set forth in Section 529A of the Internal Revenue Code are prohibited;

(f) * * * Unless otherwise required by United States Social Security Act, 42 USC Section 1396p(b), the state is not a creditor of ABLE accounts; and

(g) Material misrepresentations by a party to the participation agreement, other than the board in the application for the participation agreement or in any communication with the board regarding the Mississippi ABLE Program may result in the involuntary liquidation of the ABLE account. If an account is involuntarily liquidated, the designated beneficiary is entitled to a refund, subject to any fees or penalties provided by the participation agreement and the Internal Revenue Code.

(3) The participation agreement may include provisions specifying:

(a) The requirements and applicable restrictions for opening an ABLE account;

(b) The eligibility requirements for a party to a participation agreement and the rights of the party;

(d) The requirements and applicable restrictions for directing the investment of the contributions or balance of the ABLE account;

(e) The administrative fee and other fees and penalties applicable to an ABLE account;

(f) The terms and conditions under which an ABLE account or participation agreement may be modified, transferred or terminated;

(g) The disposition of abandoned ABLE accounts; and

(h) Any other terms and conditions determined to be necessary or proper to conform the participation agreement with the requirements of Section 529A of the Internal Revenue Code.

(4) The participation agreement may be amended throughout its term for purposes that include, but are not limited to, allowing a participant to increase or decrease the level of participation and to change designated beneficiaries and other matters authorized by this section and Section 529A of the Internal Revenue Code.

(5) Notwithstanding any other provision of law, the Mississippi ABLE Board, acting through the ABLE Coordinator, may enter into an agreement with contracting states which either allow Mississippi residents to participate under the design, operation, and rules of a contracting state's qualified ABLE Program or which allows residents of a participating contracting state to participate under the Mississippi ABLE Program.

(6) The Mississippi ABLE Program shall continue in existence until terminated by law. If the Mississippi ABLE Board determines that the program is financially infeasible, the board shall submit its recommendation, in the form of a feasibility report, to the Legislature to terminate the program.

SECTION 3. Section 43-13-120, Mississippi Code of 1972, is amended as follows:

43-13-120. (1) Any person who is a Medicaid recipient and is receiving medical assistance for services provided in a long-term care facility under the provisions of Section 43-13-117 from the Division of Medicaid in the Office of the Governor, who dies intestate and leaves no known heirs, shall have deemed, through his acceptance of such medical assistance, the Division of Medicaid as his beneficiary to all such funds in an amount not to exceed Two Hundred Fifty Dollars ($250.00) which are in his possession at the time of his death. Such funds, together with any accrued interest thereon, shall be reported by the long-term care facility to the State Treasurer in the manner provided in subsection (2).

(2) The report of such funds shall be verified, shall be on a form prescribed or approved by the Treasurer, and shall include (a) the name of the deceased person and his last known address prior to entering the long-term care facility; (b) the name and last known address of each person who may possess an interest in such funds; and (c) any other information which the Treasurer prescribes by regulation as necessary for the administration of this section. The report shall be filed with the Treasurer prior to November 1 of each year in which the long-term care facility has provided services to a person or persons having funds to which this section applies.

(3) Within one hundred twenty (120) days from November 1 of each year in which a report is made pursuant to subsection (2), the Treasurer shall cause notice to be published in a newspaper having general circulation in the county of this state in which is located the last known address of the person or persons named in the report who may possess an interest in such funds, or if no such person is named in the report, in the county in which is located the last known address of the deceased person prior to entering the long-term care facility. If no address is given in the report or if the address is outside of this state, the notice shall be published in a newspaper having general circulation in the county in which the facility is located. The notice shall contain (a) the name of the deceased person; (b) his last known address prior to entering the facility; (c) the name and last known address of each person named in the report who may possess an interest in such funds; and (d) a statement that any person possessing an interest in such funds must make a claim therefor to the Treasurer within ninety (90) days after such publication date or the funds will become the property of the State of Mississippi. In any year in which the Treasurer publishes a notice of abandoned property under Section 89-12-27, the Treasurer may combine the notice required by this section with the notice of abandoned property. The cost to the Treasurer of publishing the notice required by this section shall be paid by the Division of Medicaid.

(4) Each long-term care facility that makes a report of funds of a deceased person under this section shall pay over and deliver such funds, together with any accrued interest thereon, to the Treasurer not later than ten (10) days after notice of such funds has been published by the Treasurer as provided in subsection (3). If a claim to such funds is not made by any person having an interest therein within ninety (90) days of the published notice, the Treasurer shall place such funds in the special account in the State Treasury to the credit of the "Governor's Office - Division of Medicaid" to be expended by the Division of Medicaid for the purposes provided under Mississippi Medicaid Law.

(5) This section shall not be applicable to any Medicaid patient in a long-term care facility of a state institution listed in Section 41-7-73, who has a personal deposit fund as provided for in Section 41-7-90; and shall not be applicable to amounts in Mississippi ABLE accounts created under Section 43-28-1 et seq. unless otherwise required by the United States Social Security Act, 42 USC Section 1396p(b).

SECTION 4. Section 43-13-317, Mississippi Code of 1972, is amended as follows:

43-13-317. (1) The division shall be noticed as an identified creditor against the estate of any deceased Medicaid recipient under Section 91-7-145.

(2) In accordance with applicable federal law and rules and regulations, including those under Title XIX of the federal Social Security Act, the division may seek recovery of payments for nursing facility services, home- and community-based services and related hospital and prescription drug services from the estate of a deceased Medicaid recipient who was fifty-five (55) years of age or older when he or she received the assistance. The claim shall be waived by the division (a) if there is a surviving spouse; or (b) if there is a surviving dependent who is under the age of twenty-one (21) years or who is blind or disabled; or (c) as provided by federal law and regulation, if it is determined by the division or by court order that there is undue hardship.

(3) This section shall not be applicable to amounts in Mississippi ABLE accounts created under Section 43-28-1 et seq. unless otherwise required by the United States Social Security Act, 42 USC Section 1396p(b).

SECTION 5. This act shall take effect and be in force from and after July 1, 2024.