HOUSE BILL REPORT

2SSB 5011

As Amended by the House

BYSenate Committee on Ways & Means (originally sponsored by Senators Newhouse, Matson, Sutherland, Bauer, Talmadge, Benitz, West and Rasmussen)

Providing for allocation of assets of an institutionalized spouse.

House Committe on Health Care

Majority Report:  Do pass with amendments. (8)

      Signed by Representatives Braddock, Chair; Brooks, Ranking Republican Member; Chandler, Morris, Prentice, Sommers, Sprenkle and Wolfe.

House Staff:Antonio Sanchez (786-7183)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on Health Care.  (25)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Belcher, Bowman, Braddock, Brekke, Brough, Dorn, Doty, Ebersole, Ferguson, Hine, May, McLean, Nealey, Padden, Peery, Rust, Spanel, Sprenkle, Valle and Wineberry.

Minority Report:  Do not pass.  (1)

      Signed by Representative Sayan.

House Staff:      Dave Knutson (786-7136)

AS PASSED HOUSE APRIL 6, 1989

BACKGROUND:

Under state law, a person is ineligible for institutional medical assistance programs (nursing homes) if his or her assets have been transferred to someone other than a spouse up to two years previously. There is no limitation on transfer of assets to a spouse.  However, the Department of Social and Health Services (DSHS) policies require that no more than 50 percent of the income of an institutionalized person may be retained by the spouse who remains in the community.  Average income of spouses who remain in the community is estimated by DSHS to be $325 per month.

The Medicare Catastrophic Coverage Act of 1988 requires changes in the terms and methods of distributing assets prior to an applicant's admission.  It places limits on the transfer of assets and income between spouses when one spouse applies for institutional medical assistance.  Maximum allowable assets are $60,000, excluding a house, car and personal possessions.  Maximum income is $1500 per month with certain adjustments.  Minimum assets are $12,000 and minimum income is $786 with certain adjustments.

SUMMARY:

The Department of Social and Health Services must establish the allocation of income and resources between an institutionalized spouse and a spouse who remains in the community when determining eligibility for medical assistance.  The department is to establish asset allocations at the maximum levels permissible under federal law.

The department must establish the income allowance at the maximum amount allowed by the state appropriation or within available funds for the spouse who remains in the community.

Current law regarding income and asset transfer procedures is repealed.  The department must amend its procedures to comply with federal requirements.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Health Care) Charles Reed, Department of Social and Health Services.

(Appropriations) None Presented.

House Committee - Testified Against:      (Health Care) None Presented.

(Appropriations) None Presented.

House Committee - Testimony For:    (Health Care) This bill would serve an important function. However, there may be potential fiscal problems.

(Appropriations) None Presented.

House Committee - Testimony Against:      (Health Care) None Presented.

(Appropriations) None Presented.