Minnesota Statutes 2023, Section 256B.056

256B.056 ELIGIBILITY REQUIREMENTS FOR MEDICAL ASSISTANCE.

Subdivision 1. Residency. (a) To be eligible for medical assistance, a person must reside in Minnesota,

or, if absent from the state, be deemed to be a resident of Minnesota, in accordance with Code of Federal

Regulations, title 42, section 435.403.

(b) The commissioner shall identify individuals who are enrolled in medical assistance and who are

absent from the state for more than 30 consecutive days, but who continue to qualify for medical assistance

in accordance with paragraph (a).

of Minnesota in accordance with paragraph (a), any covered service provided to the individual must be paid

through the fee-for-service system and not through the managed care capitated rate payment system under

section 256B.69 or 256L.12.

Subd. 1a. Income and assets generally. (a)(1) Unless specifically required by state law or rule or federal

law or regulation, the methodologies used in counting income and assets to determine eligibility for medical

assistance for persons whose eligibility category is based on blindness, disability, or age of 65 or more years,

the methodologies for the Supplemental Security Income program shall be used, except as provided under

subdivision 3, paragraph (a), clause (6).

(2) Increases in benefits under title II of the Social Security Act shall not be counted as income for

purposes of this subdivision until July 1 of each year. Effective upon federal approval, for children eligible

under section 256B.055, subdivision 12, or for home and community-based waiver services whose eligibility

for medical assistance is determined without regard to parental income, child support payments, including

any payments made by an obligor in satisfaction of or in addition to a temporary or permanent order for

child support, and Social Security payments are not counted as income.

(b)(1) The modified adjusted gross income methodology as defined in United States Code, title 42,

section 1396a(e)(14), shall be used for eligibility categories based on:

(i) children under age 19 and their parents and relative caretakers as defined in section 256B.055,

subdivision 3a;

(ii) children ages 19 to 20 as defined in section 256B.055, subdivision 16;

(iii) pregnant women as defined in section 256B.055, subdivision 6;

(iv) infants as defined in sections 256B.055, subdivision 10, and 256B.057, subdivision 1; and

(v) adults without children as defined in section 256B.055, subdivision 15.

For these purposes, a "methodology" does not include an asset or income standard, or accounting method,

or method of determining effective dates.

(2) For individuals whose income eligibility is determined using the modified adjusted gross income

methodology in clause (1):

(i) the commissioner shall subtract from the individual's modified adjusted gross income an amount

equivalent to five percent of the federal poverty guidelines; and

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(ii) the individual's current monthly income and household size is used to determine eligibility for the

12-month eligibility period. If an individual's income is expected to vary month to month, eligibility is

determined based on the income predicted for the 12-month eligibility period.

Subd. 1b. Aged, blind, and disabled income methodology. The $20 general income disregard allowed

under the Supplemental Security Income program is included in the standard and shall not be allowed as a

deduction from income for a person eligible under section 256B.055, subdivisions 7, 7a, and 12.

Subd. 1c. Families with children income methodology. (a) The commissioner shall adjust the income

standards under this section each July 1 by the annual update of the federal poverty guidelines following

publication by the United States Department of Health and Human Services except that the income standards

shall not go below those in effect on July 1, 2009.

(b) For children age 18 or under, annual gifts of $2,000 or less by a tax-exempt organization to or for

the benefit of the child with a life-threatening illness must be disregarded from income.

Subd. 1d. Treatment of certain monetary gifts. The commissioner shall disregard as income any

portion of a monetary gift received by an applicant or enrollee that is designated to purchase a prosthetic

device not covered by insurance, other third-party payers, or medical assistance.

Subd. 2. Homestead exclusion for persons residing in a long-term care facility. The homestead shall

be excluded for the first six calendar months of a person's stay in a long-term care facility and shall continue

to be excluded for as long as the recipient can be reasonably expected to return to the homestead. For purposes

of this subdivision, "reasonably expected to return to the homestead" means the recipient's attending physician,

advanced practice registered nurse, or physician assistant has certified that the expectation is reasonable,

and the recipient can show that the cost of care upon returning home will be met through medical assistance

or other sources. The homestead shall continue to be excluded for persons residing in a long-term care facility

if it is used as a primary residence by one of the following individuals:

(1) the spouse;

(2) a child under age 21;

(3) a child of any age who is blind or permanently and totally disabled as defined in the Supplemental

Security Income program;

(4) a sibling who has equity interest in the home and who resided in the home for at least one year

immediately before the date of the person's admission to the facility; or

(5) a child of any age or a grandchild of any age who resided in the home for at least two years

immediately before the date of the person's admission to the facility, and who provided care to the person

that permitted the person to reside at home rather than in an institution.

Subd. 2a. Home equity limit for medical assistance payment of long-term care services. (a) Effective

for requests of medical assistance payment of long-term care services filed on or after July 1, 2006, and for

renewals on or after July 1, 2006, for persons who received payment of long-term care services under a

request filed on or after January 1, 2006, the equity interest in the home of a person whose eligibility for

long-term care services is determined on or after January 1, 2006, shall not exceed $500,000, unless it is the

lawful residence of the person's spouse or child who is under age 21, or a child of any age who is blind or

permanently and totally disabled as defined in the Supplemental Security Income program. The amount

specified in this paragraph shall be increased beginning in year 2011, from year to year based on the percentage

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increase in the Consumer Price Index for all urban consumers (all items; United States city average), rounded

to the nearest $1,000.

(b) For purposes of this subdivision, a "home" means any real or personal property interest, including

an interest in an agricultural homestead as defined under section 273.124, subdivision 1, that, at the time of

the request for medical assistance payment of long-term care services, is the primary dwelling of the person

or was the primary dwelling of the person before receipt of long-term care services began outside of the

home.

the person's home equity exceeds the home equity limit may seek a waiver based upon a hardship by filing

a written request with the county agency. Hardship is an imminent threat to the person's health and well-being

that is demonstrated by documentation of no alternatives for payment of long-term care services. The county

agency shall make a decision regarding the written request to waive the home equity limit within 30 days

if all necessary information has been provided. The county agency shall send the person and the person's

representative a written notice of decision on the request for a demonstrated hardship waiver that also advises

the person of appeal rights under the fair hearing process of section 256.045.

Subd. 3. Asset limitations for certain individuals. (a) To be eligible for medical assistance, a person

must not individually own more than $3,000 in assets, or if a member of a household with two family

members, husband and wife, or parent and child, the household must not own more than $6,000 in assets,

plus $200 for each additional legal dependent. In addition to these maximum amounts, an eligible individual

or family may accrue interest on these amounts, but they must be reduced to the maximum at the time of an

eligibility redetermination. The accumulation of the clothing and personal needs allowance according to

section 256B.35 must also be reduced to the maximum at the time of the eligibility redetermination. The

value of assets that are not considered in determining eligibility for medical assistance is the value of those

assets excluded under the Supplemental Security Income program for aged, blind, and disabled persons,

with the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business that the local agency determines are necessary to

the person's ability to earn an income are not considered;

(3) motor vehicles are excluded to the same extent excluded by the Supplemental Security Income

program;

(4) assets designated as burial expenses are excluded to the same extent excluded by the Supplemental

Security Income program. Burial expenses funded by annuity contracts or life insurance policies must

irrevocably designate the individual's estate as contingent beneficiary to the extent proceeds are not used

for payment of selected burial expenses;

(5) for a person who no longer qualifies as an employed person with a disability due to loss of earnings,

assets allowed while eligible for medical assistance under section 256B.057, subdivision 9, are not considered

for 12 months, beginning with the first month of ineligibility as an employed person with a disability;

(6) a designated employment incentives asset account is disregarded when determining eligibility for

medical assistance for a person age 65 years or older under section 256B.055, subdivision 7. An employment

incentives asset account must only be designated by a person who has been enrolled in medical assistance

under section 256B.057, subdivision 9, for a 24-consecutive-month period. A designated employment

incentives asset account contains qualified assets owned by the person in the last month of enrollment in

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medical assistance under section 256B.057, subdivision 9. Qualified assets include retirement and pension

accounts, medical expense accounts, and up to $17,000 of the person's other nonexcluded liquid assets. An

employment incentives asset account is no longer designated when a person loses medical assistance eligibility

for a calendar month or more before turning age 65. A person who loses medical assistance eligibility before

age 65 can establish a new designated employment incentives asset account by establishing a new

24-consecutive-month period of enrollment under section 256B.057, subdivision 9. Persons eligible under

this clause are not subject to the provisions in section 256B.059; and

(7) effective July 1, 2009, certain assets owned by American Indians are excluded as required by section

5006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. For purposes of this

clause, an American Indian is any person who meets the definition of Indian according to Code of Federal

Regulations, title 42, section 447.50.

(b) No asset limit shall apply to persons eligible under sections 256B.055, subdivision 15, and 256B.057,

subdivision 9.

Subd. 3a. [Repealed, 1992 c 513 art 7 s 135]

Subd. 3b. Treatment of trusts. (a) It is the public policy of this state that individuals use all available

resources to pay for the cost of long-term care services, as defined in section 256B.0595, before turning to

Minnesota health care program funds, and that trust instruments should not be permitted to shield available

resources of an individual or an individual's spouse from such use.

(b) A "medical assistance qualifying trust" is a revocable or irrevocable trust, or similar legal device,

established on or before August 10, 1993, by a person or the person's spouse under the terms of which the

person receives or could receive payments from the trust principal or income and the trustee has discretion

in making payments to the person from the trust principal or income. Notwithstanding that definition, a

medical assistance qualifying trust does not include: (1) a trust set up by will; (2) a trust set up before April

7, 1986, solely to benefit a person with a developmental disability living in an intermediate care facility for

persons with developmental disabilities; or (3) a trust set up by a person with payments made by the Social

Security Administration pursuant to the United States Supreme Court decision in Sullivan v. Zebley, 110

S. Ct. 885 (1990). The maximum amount of payments that a trustee of a medical assistance qualifying trust

may make to a person under the terms of the trust is considered to be available assets to the person, without

regard to whether the trustee actually makes the maximum payments to the person and without regard to

the purpose for which the medical assistance qualifying trust was established.

1396p(d).

(d) For purposes of paragraph (e), a pooled trust means a trust established under United States Code,

title 42, section 1396p(d)(4)(C).

(e) A beneficiary's interest in a pooled trust is considered an available asset unless the trust provides

that upon the death of the beneficiary or termination of the trust during the beneficiary's lifetime, whichever

is sooner, the department receives any amount, up to the amount of medical assistance benefits paid on

behalf of the beneficiary, remaining in the beneficiary's trust account after a deduction for reasonable

administrative fees and expenses, and an additional remainder amount. The retained remainder amount of

the subaccount must not exceed ten percent of the account value at the time of the beneficiary's death or

termination of the trust, and must only be used for the benefit of disabled individuals who have a beneficiary

interest in the pooled trust.

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(f) Trusts may be established on or after December 12, 2016, by a person who has been determined to

be disabled, according to United States Code, title 42, section 1396p(d)(4)(A), as amended by section 5007

of the 21st Century Cures Act, Public Law 114-255.

[See Note.]

Subd. 3c. Asset limitations for families and children. (a) A household of two or more persons must

not own more than $20,000 in total net assets, and a household of one person must not own more than

$10,000 in total net assets. In addition to these maximum amounts, an eligible individual or family may

accrue interest on these amounts, but they must be reduced to the maximum at the time of an eligibility

redetermination. The value of assets that are not considered in determining eligibility for medical assistance

for families and children is the value of those assets excluded under the AFDC state plan as of July 16, 1996,

as required by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA),

Public Law 104-193, with the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business up to $200,000 are not considered;

(3) one motor vehicle is excluded for each person of legal driving age who is employed or seeking

employment;

(4) assets designated as burial expenses are excluded to the same extent they are excluded by the

Supplemental Security Income program;

(5) court-ordered settlements up to $10,000 are not considered;

(6) individual retirement accounts and funds are not considered;

(7) assets owned by children are not considered; and

(8) certain assets owned by American Indians are excluded as required by section 5006 of the American

Recovery and Reinvestment Act of 2009, Public Law 111-5. For purposes of this clause, an American Indian

is any person who meets the definition of Indian according to Code of Federal Regulations, title 42, section

447.50.

(b) Paragraph (a) applies only to parents and caretaker relatives who qualify for medical assistance under

subdivision 5.

described in paragraphs (a) and (b) and subdivision 3.

Subd. 3d. Reduction of excess assets. Assets in excess of the limits in subdivisions 3 to 3c may be

reduced to allowable limits as follows:

(a) Assets may be reduced in any of the three calendar months before the month of application in which

the applicant seeks coverage by paying bills for health services that are incurred in the retroactive period

for which the applicant seeks eligibility, starting with the oldest bill. After assets are reduced to allowable

limits, eligibility begins with the next dollar of MA-covered health services incurred in the retroactive period.

Applicants reducing assets under this subdivision who also have excess income shall first spend excess

assets to pay health service bills and may meet the income spenddown on remaining bills.

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(b) Assets may be reduced beginning the month of application by paying bills for health services that

are incurred during the period specified in Minnesota Rules, part 9505.0090, subpart 2, that would otherwise

be paid by medical assistance. After assets are reduced to allowable limits, eligibility begins with the next

dollar of medical assistance covered health services incurred in the period. Applicants reducing assets under

this subdivision who also have excess income shall first spend excess assets to pay health service bills and

may meet the income spenddown on remaining bills.

[See Note.]

Subd. 3e. Continuing care retirement and life care community entrance fees. An entrance fee paid

by an individual to a continuing care retirement or life care community shall be treated as an available asset

to the extent that:

(1) the individual has the ability to use the entrance fee, or the contract provides that the entrance fee

may be used, to pay for care should other resources or income of the individual be insufficient to pay for

care;

(2) the individual is eligible for a refund of any remaining entrance fees when the individual dies or

terminates the continuing care retirement or life care community contract and leaves the community; and

(3) the entrance fee does not confer an ownership interest in the continuing care retirement or life care

community.

Subd. 4. Income. (a) To be eligible for medical assistance, a person eligible under section 256B.055,

subdivisions 7, 7a, and 12, may have income up to 100 percent of the federal poverty guidelines. Effective

January 1, 2000, and each successive January, recipients of Supplemental Security Income may have an

income up to the Supplemental Security Income standard in effect on that date.

(b) To be eligible for medical assistance under section 256B.055, subdivision 3a, a parent or caretaker

relative may have an income up to 133 percent of the federal poverty guidelines for the household size.

income up to 133 percent of federal poverty guidelines for the household size.

(d) To be eligible for medical assistance under section 256B.055, subdivision 16, a child age 19 to 20

may have an income up to 133 percent of the federal poverty guidelines for the household size.

(e) To be eligible for medical assistance under section 256B.055, subdivision 3a, a child under age 19

may have income up to 275 percent of the federal poverty guidelines for the household size.

(f) In computing income to determine eligibility of persons under paragraphs (a) to (e) who are not

residents of long-term care facilities, the commissioner shall disregard increases in income as required by

Public Laws 94-566, section 503; 99-272; and 99-509. For persons eligible under paragraph (a), veteran aid

and attendance benefits and Veterans Administration unusual medical expense payments are considered

income to the recipient.

Subd. 4a. Asset verification. For purposes of verification, an individual is not required to make a good

faith effort to sell a life estate that is not excluded under subdivision 2 and the life estate shall be deemed

not salable unless the owner of the remainder interest intends to purchase the life estate, or the owner of the

life estate and the owner of the remainder sell the entire property. This subdivision applies only for the

purpose of determining eligibility for medical assistance, and does not apply to the valuation of assets owned

by either the institutional spouse or the community spouse under section 256B.059, subdivision 2.

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Subd. 4b. Income verification. The local agency shall not require a monthly income verification form

for a recipient who is a resident of a long-term care facility and who has monthly earned income of $80 or

less. The commissioner or county agency shall use electronic verification as the primary method of income

verification. If there is a discrepancy between reported income and electronically verified income, an

individual may be required to submit additional verification.

Subd. 5. Excess income. A person who has excess income is eligible for medical assistance if the person

has expenses for medical care that are more than the amount of the person's excess income, computed by

deducting incurred medical expenses from the excess income to reduce the excess to the income standard

specified in subdivision 5c. The person shall elect to have the medical expenses deducted at the beginning

of a one-month budget period or at the beginning of a six-month budget period. The commissioner shall

allow persons eligible for assistance on a one-month spenddown basis under this subdivision to elect to pay

the monthly spenddown amount in advance of the month of eligibility to the state agency in order to maintain

eligibility on a continuous basis. If the recipient does not pay the spenddown amount on or before the 20th

of the month, the recipient is ineligible for this option for the following month. The local agency shall code

the Medicaid Management Information System (MMIS) to indicate that the recipient has elected this option.

The state agency shall convey recipient eligibility information relative to the collection of the spenddown

to providers through the Electronic Verification System (EVS). A recipient electing advance payment must

pay the state agency the monthly spenddown amount on or before the 20th of the month in order to be eligible

for this option in the following month.

Subd. 5a. Individuals on fixed or excluded income. Recipients of medical assistance who receive only

fixed unearned or excluded income, when that income is excluded from consideration as income or unvarying

in amount and timing of receipt throughout the year, shall report and verify their income annually.

Subd. 5b. [Repealed, 2013 c 108 art 1 s 68]

Subd. 5c. Excess income standard. (a) The excess income standard for parents and caretaker relatives,

pregnant women, infants, and children ages two through 20 is the standard specified in subdivision 4,

paragraph (b).

(b) The excess income standard for a person whose eligibility is based on blindness, disability, or age

of 65 or more years shall equal:

(1) 81 percent of the federal poverty guidelines; and

(2) effective July 1, 2022, the standard specified in subdivision 4, paragraph (a).

Subd. 5d. Medical assistance room and board rate. "Medical assistance room and board rate" means

an amount equal to 81 percent of the federal poverty guideline for a single individual living alone in the

community less the medical assistance personal needs allowance under section 256B.35. The amount of the

room and board rate, as defined in section 256I.03, subdivision 14a, that exceeds the medical assistance

room and board rate is considered a remedial care cost. A remedial care cost may be used to meet a spenddown

obligation under this section. The medical assistance room and board rate is to be adjusted on January 1 of

each year.

Subd. 6. Assignment of benefits. To be eligible for medical assistance a person must have applied or

must agree to apply all proceeds received or receivable by the person or the person's legal representative

from any third party liable for the costs of medical care. By accepting or receiving assistance, the person is

deemed to have assigned the person's rights to medical support and third-party payments as required by title

19 of the Social Security Act. Persons must cooperate with the state in establishing paternity and obtaining

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third-party payments. By accepting medical assistance, a person assigns to the Department of Human Services

all rights the person may have to medical support or payments for medical expenses from any other person

or entity on their own or their dependent's behalf and agrees to cooperate with the state in establishing

paternity and obtaining third-party payments. Any rights or amounts so assigned shall be applied against

the cost of medical care paid for under this chapter. Any assignment takes effect upon the determination

that the applicant is eligible for medical assistance and up to three months prior to the date of application if

the applicant is determined eligible for and receives medical assistance benefits. The application must contain

a statement explaining this assignment. For the purposes of this section, "the Department of Human Services

or the state" includes prepaid health plans under contract with the commissioner according to sections

256B.69 and 256L.12 and Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, paragraph

(c); children's mental health collaboratives under section 245.493; demonstration projects for persons with

disabilities under section 256B.77; nursing facilities under the alternative payment demonstration project

under section 256B.434; and the county-based purchasing entities under section 256B.692.

Subd. 7. Period of eligibility. (a) Eligibility is available for the month of application and for three

months prior to application if the person was eligible in those prior months. A redetermination of eligibility

must occur every 12 months.

(b) Notwithstanding any other law to the contrary:

(1) a child under 19 years of age who is determined eligible for medical assistance must remain eligible

for a period of 12 months;

(2) a child 19 years of age and older but under 21 years of age who is determined eligible for medical

assistance must remain eligible for a period of 12 months; and

(3) a child under six years of age who is determined eligible for medical assistance must remain eligible

through the month in which the child reaches six years of age.

(1) the child or the child's representative requests voluntary termination of eligibility;

(2) the child ceases to be a resident of this state;

(3) the child dies;

(4) the child attains the maximum age; or

(5) the agency determines eligibility was erroneously granted at the most recent eligibility determination

due to agency error or fraud, abuse, or perjury attributed to the child or the child's representative.

(d) For a person eligible for an insurance affordability program as defined in section 256B.02, subdivision

19, who reports a change that makes the person eligible for medical assistance, eligibility is available for

the month the change was reported and for three months prior to the month the change was reported, if the

person was eligible in those prior months.

[See Note.]

Subd. 7a. Periodic renewal of eligibility. (a) The commissioner shall make an annual redetermination

of eligibility based on information contained in the enrollee's case file and other information available to

the agency, including but not limited to information accessed through an electronic database, without requiring

the enrollee to submit any information when sufficient data is available for the agency to renew eligibility.

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(b) If the commissioner cannot renew eligibility in accordance with paragraph (a), the commissioner

must provide the enrollee with a prepopulated renewal form containing eligibility information available to

the agency and permit the enrollee to submit the form with any corrections or additional information to the

agency and sign the renewal form via any of the modes of submission specified in section 256B.04, subdivision

18.

the renewal form and required information within four months after the date of termination and have coverage

reinstated without a lapse, if otherwise eligible under this chapter. The local agency may close the enrollee's

case file if the required information is not submitted within four months of termination.

(d) Notwithstanding paragraph (a), a person who is eligible under subdivision 5 shall be subject to a

review of the person's income every six months.

Subd. 8. Cooperation. To be eligible for medical assistance, applicants and recipients must cooperate

with the state and local agency to identify potentially liable third-party payers and assist the state in obtaining

third-party payments, unless good cause for noncooperation is determined according to Code of Federal

Regulations, title 42, part 433.147. "Cooperation" includes identifying any third party who may be liable

for care and services provided under this chapter to the applicant, recipient, or any other family member for

whom application is made and providing relevant information to assist the state in pursuing a potentially

liable third party. Cooperation also includes providing information about a group health plan for which the

person may be eligible and if the plan is determined cost-effective by the state agency and premiums are

paid by the local agency or there is no cost to the recipient, they must enroll or remain enrolled with the

group. For purposes of this subdivision, coverage provided by the Minnesota Comprehensive Health

Association under chapter 62E shall not be considered group health plan coverage or cost-effective by the

state and local agency. Cost-effective insurance premiums approved for payment by the state agency and

paid by the local agency are eligible for reimbursement according to section 256B.19.

Subd. 9. Notice. The state agency must be given notice of monetary claims against a person, entity, or

corporation that may be liable to pay all or part of the cost of medical care when the state agency has paid

or becomes liable for the cost of that care. Notice must be given according to paragraphs (a) to (d).

(a) An applicant for medical assistance shall notify the state or local agency of any possible claims when

the applicant submits the application. A recipient of medical assistance shall notify the state or local agency

of any possible claims when those claims arise.

(b) A person providing medical care services to a recipient of medical assistance shall notify the state

agency when the person has reason to believe that a third party may be liable for payment of the cost of

medical care.

agency of its potential assignment claim in writing at each of the following stages of a claim:

(1) when a claim is filed;

(2) when an action is commenced; and

(3) when a claim is concluded by payment, award, judgment, settlement, or otherwise.

(d) Every party involved in any stage of a claim under this subdivision is required to provide notice to

the state agency at that stage of the claim. However, when one of the parties to the claim provides notice at

that stage, every other party to the claim is deemed to have provided the required notice for that stage of the

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claim. If the required notice under this paragraph is not provided to the state agency, all parties to the claim

are deemed to have failed to provide the required notice. A party to the claim includes the injured person or

the person's legal representative, the plaintiff, the defendants, or persons alleged to be responsible for

compensating the injured person or plaintiff, and any other party to the cause of action or claim, regardless

of whether the party knows the state agency has a potential or actual assignment claim.

Subd. 10. Eligibility verification. (a) The commissioner shall require women who are applying for the

continuation of medical assistance coverage following the end of the 12-month postpartum period to update

their income and asset information and to submit any required income or asset verification.

(b) The commissioner shall determine the eligibility of private-sector health care coverage for infants

less than one year of age eligible under section 256B.055, subdivision 10, or 256B.057, subdivision 1,

paragraph (c), and shall pay for private-sector coverage if this is determined to be cost-effective.

(d) The commissioner shall utilize information obtained through the electronic service established by

the secretary of the United States Department of Health and Human Services and other available electronic

data sources in Code of Federal Regulations, title 42, sections 435.940 to 435.956, to verify eligibility

requirements. The commissioner shall establish standards to define when information obtained electronically

is reasonably compatible with information provided by applicants and enrollees, including use of

self-attestation, to accomplish real-time eligibility determinations and maintain program integrity.

(e) Each person applying for or receiving medical assistance under section 256B.055, subdivision 7,

and any other person whose resources are required by law to be disclosed to determine the applicant's or

recipient's eligibility must authorize the commissioner to obtain information from financial institutions to

identify unreported accounts as required in section 256.01, subdivision 18f. If a person refuses or revokes

the authorization, the commissioner may determine that the applicant or recipient is ineligible for medical

assistance. For purposes of this paragraph, an authorization to identify unreported accounts meets the

requirements of the Right to Financial Privacy Act, United States Code, title 12, chapter 35, and need not

be furnished to the financial institution.

(f) County and tribal agencies shall comply with the standards established by the commissioner for

appropriate use of the asset verification system specified in section 256.01, subdivision 18f.

Subd. 11. Treatment of annuities. (a) Any person requesting medical assistance payment of long-term

care services shall provide a complete description of any interest either the person or the person's spouse

has in annuities on a form designated by the department. The form shall include a statement that the state

becomes a preferred remainder beneficiary of annuities or similar financial instruments by virtue of the

receipt of medical assistance payment of long-term care services. The person and the person's spouse shall

furnish the agency responsible for determining eligibility with complete current copies of their annuities

and related documents and complete the form designating the state as the preferred remainder beneficiary

for each annuity in which the person or the person's spouse has an interest.

(b) The department shall provide notice to the issuer of the department's right under this section as a

preferred remainder beneficiary under the annuity or similar financial instrument for medical assistance

furnished to the person or the person's spouse, and provide notice of the issuer's responsibilities as provided

in paragraph (c).

named a preferred remainder beneficiary as described in paragraph (b) shall provide confirmation to the

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requesting agency that the state has been made a preferred remainder beneficiary. The issuer shall also notify

the county agency when a change in the amount of income or principal being withdrawn from the annuity

or other similar financial instrument or a change in the state's preferred remainder beneficiary designation

under the annuity or other similar financial instrument occurs. The county agency shall provide the issuer

with the name, address, and telephone number of a unit within the department that the issuer can contact to

comply with this paragraph.

(d) "Preferred remainder beneficiary" for purposes of this subdivision and sections 256B.0594 and

256B.0595 means the state is a remainder beneficiary in the first position in an amount equal to the amount

of medical assistance paid on behalf of the institutionalized person, or is a remainder beneficiary in the

second position if the institutionalized person designates and is survived by a remainder beneficiary who is

(1) a spouse who does not reside in a medical institution, (2) a minor child, or (3) a child of any age who is

blind or permanently and totally disabled as defined in the Supplemental Security Income program.

Notwithstanding this paragraph, the state is the remainder beneficiary in the first position if the spouse or

child disposes of the remainder for less than fair market value.

(e) For purposes of this subdivision, "institutionalized person" and "long-term care services" have the

meanings given in section 256B.0595, subdivision 1, paragraph (f).

(f) For purposes of this subdivision, "medical institution" means a skilled nursing facility, intermediate

care facility, intermediate care facility for persons with developmental disabilities, nursing facility, or

inpatient hospital.

History: Ex1967 c 16 s 6; 1969 c 841 s 1; 1973 c 717 s 18; 1974 c 525 s 1,2; 1975 c 247 s 10; 1976 c

236 s 3; 1977 c 448 s 6; 1978 c 760 s 1; 1979 c 309 s 4; 1980 c 509 s 106; 1980 c 527 s 1; 1981 c 360 art

2 s 28; 1Sp1981 c 2 s 14; 3Sp1981 c 2 art 1 s 32; 3Sp1981 c 3 s 17; 1982 c 553 s 6; 1982 c 640 s 5; 1983

c 312 art 5 s 15; 1984 c 422 s 1; 1984 c 534 s 22; 1984 c 654 art 5 s 58; 1985 c 248 s 70; 1985 c 252 s 21;

1986 c 444; 1Sp1986 c 1 art 8 s 5; 1987 c 403 art 2 s 79,80; 1988 c 689 art 2 s 144,145,268; 1989 c 282

art 3 s 45-47; 1989 c 332 s 1; 1990 c 568 art 3 s 28-32; 1992 c 513 art 7 s 34-38; 1993 c 339 s 13; 1Sp1993

c 1 art 5 s 31; art 6 s 25; 1995 c 207 art 6 s 28,29; 1995 c 248 art 17 s 1-4; 1996 c 451 art 2 s 8,9; 1997 c

85 art 3 s 13-15; 1997 c 203 art 4 s 20,21; 1997 c 225 art 6 s 4; 1998 c 407 art 4 s 15,16; 1999 c 245 art

4 s 32; art 10 s 10; 2001 c 203 s 5,6; 1Sp2001 c 9 art 2 s 16-24; 2002 c 220 art 15 s 6; 2002 c 379 art 1 s

113; 1Sp2003 c 14 art 2 s 16; art 12 s 16-18; 2004 c 228 art 1 s 75; 2005 c 56 s 1; 2005 c 98 art 2 s 2;

1Sp2005 c 4 art 8 s 20-26; 2006 c 282 art 17 s 25-27; 2007 c 147 art 4 s 4; art 5 s 8; 2008 c 326 art 1 s

9-12; 2009 c 79 art 5 s 17,18; 2009 c 173 art 1 s 17; art 3 s 6-8; 2010 c 310 art 16 s 1; 1Sp2010 c 1 art 16

s 6,7,48; art 24 s 9,10,13; 1Sp2011 c 9 at 6 s 84,85,88; art 7 s 6; 2012 c 216 art 13 s 3,4; 2012 c 247 art 4

s 15,16; 2013 c 1 s 3-5; 2013 c 63 s 5; 2013 c 107 art 4 s 6; 2013 c 108 art 1 s 14-20; 2015 c 71 art 7 s 27;

2016 c 158 art 2 s 84; 2017 c 59 s 8; 1Sp2017 c 6 art 4 s 18-20; 1Sp2019 c 9 art 7 s 19-22; 2020 c 115 art

3 s 16-20; 1Sp2020 c 2 art 2 s 11; 1Sp2021 c 7 art 1 s 5; 2022 c 98 art 2 s 5-7; 2023 c 61 art 3 s 3; 2023 c

70 art 16 s 11; art 17 s 41,62

NOTE: The amendment to subdivision 3b by Laws 2009, chapter 173, article 1, section 17, is effective

for pooled trust accounts established on or after January 1, 2014. Laws 2009, chapter 173, article 1, section

17, the effective date, as amended by Laws 2010, First Special Session chapter 1, article 24, section 13; and

Laws 2011, First Special Session chapter 9, article 6, section 88.

NOTE: The amendment to subdivision 3d by Laws 2009, chapter 79, article 5, section 18, is effective

January 1, 2014, or upon the date it is no longer subject to the maintenance of effort requirement in Public

Law 111-148. The commissioner of human services shall notify the revisor of statutes when federal approval

is obtained. Laws 2009, chapter 79, article 5, section 18, the effective date, as amended by Laws 2010, First

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Special Session chapter 1, article 24, section 10; and Laws 2011, First Special Session chapter 9, article 6,

section 85.

NOTE: The amendment to subdivision 7 by Laws 2023, chapter 70, article 16, section 11, is effective

January 1, 2025, or upon federal approval, whichever is later, except that paragraph (b), clause (1), is effective

upon federal approval and the implementation of required administrative and systems changes. The

commissioner of human services shall notify the revisor of statutes when federal approval is obtained and

the required administrative and systems changes are implemented. Laws 2023, chapter 70, article 16, section

11, the effective date.

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