FINAL BILL REPORT

2SSB 5011

PARTIAL VETO

                               C 87 L 89

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.

Senate Committee on Health Care & Corrections and Committee on Ways & Means

House Committe on Health Care

Rereferred House Committee on Appropriations

SYNOPSIS AS ENACTED

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Current law regarding income and asset transfer procedures is repealed.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.

Penalties for receiving cash or resources at less than fair market value to enable a person to qualify for medical assistance or the limited casualty program are repealed.  New federal rules limiting eligibility will replace them.

VOTES ON FINAL PASSAGE:

     Senate   44    0

     House 97  0 (House amended)

     Senate   44    0 (Senate concurred)

EFFECTIVE:July 1, 1989 (Sections 7, 8)

           July 23, 1989 (Section 6)

           October 1, 1989 (Sections 1-5)

Partial Veto Summary:  A report on the number of persons affected and associated costs will not be made to the Legislature by DSHS.  (See VETO MESSAGE)