Assembly Bill No. 249–Committee on Health and Human Services
(On Behalf of Welfare Division—Child Support Enforcement)
February 16, 1999
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Referred to Committee on Health and Human Services
SUMMARY—Amends provisions governing recovery of assets pursuant to Medicaid estate recovery program. (BDR 38-449)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 422 of NRS is hereby amended by adding thereto a1-2
new section to read as follows:1-3
1. Except as otherwise provided in this section, the welfare division1-4
shall, to the extent that it is not prohibited by federal law, recover from a1-5
recipient of public assistance, the estate of the recipient, the undivided1-6
estate of a recipient of Medicaid or a person who signed the application1-7
for public assistance on behalf of the recipient an amount not to exceed1-8
the amount of public assistance incorrectly paid to the recipient, if the1-9
person who signed the application:1-10
(a) Failed to report any required information to the welfare division1-11
that the person knew at the time he signed the application; or1-12
(b) Failed to report to the welfare division within the period allowed1-13
by the welfare division any required information that the person obtained1-14
after he filed the application.1-15
2. Except as otherwise provided in this section, a recipient of1-16
incorrectly paid public assistance, the undivided estate of a recipient of1-17
Medicaid or a person who signed the application for public benefits on2-1
behalf of the recipient shall reimburse the division or appropriate state2-2
agency for the value of the incorrectly paid public assistance.2-3
3. The administrator or his designee may, to the extent that it is not2-4
prohibited by federal law, determine the amount of, and settle, adjust,2-5
compromise or deny a claim against a recipient of public assistance, the2-6
estate of the recipient, the undivided estate of a recipient of Medicaid or a2-7
person who signed the application for public assistance on behalf of the2-8
recipient.2-9
4. The administrator may, to the extent that it is not prohibited by2-10
federal law, waive the repayment of public assistance incorrectly paid to2-11
a recipient if the incorrect payment was not the result of an intentional2-12
misrepresentation or omission by the recipient and if repayment would2-13
cause an undue hardship to the recipient. The administrator shall, by2-14
regulation, establish the terms and conditions of such a waiver,2-15
including, without limitation, the circumstances that constitute undue2-16
hardship.2-17
Sec. 2. NRS 422.054 is hereby amended to read as follows: 422.054 "Undivided estate" means all real and personal property and2-19
other assets included in the estate of a deceased recipient of Medicaid and2-20
any other real and personal property and other assets in or to which he2-21
had an interest or legal title immediately before or at the time of his death,2-22
to the extent of that interest or title. The term includes , without limitation,2-23
assets2-24
2-25
recipient through joint tenancy, tenancy in common, survivorship, life2-26
estate, living trust or other arrangement, including, without limitation,2-27
any of the decedent’s separate property and his interest in community2-28
property that was transferred to a community spouse pursuant to NRS2-29
123.259 or pursuant to an order of a district court under any other provision2-30
of law.2-31
Sec. 3. NRS 422.2935 is hereby amended to read as follows: 422.2935 1. Except as otherwise provided in this section2-33
2-34
and when circumstances allow2-35
2-36
for Medicaid from:2-37
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benefits; and2-39
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estate of the person who received those benefits.2-41
2-42
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2. The welfare division shall not recover benefits pursuant to3-9
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surviving spouse nor a child, until after the death of the surviving spouse, if3-11
any, and only at a time when the person who received the benefits has no3-12
surviving child who is under 21 years of age or is blind or permanently and3-13
totally disabled.3-14
3. Except as otherwise provided by federal law, if a transfer of real or3-15
personal property by a recipient of Medicaid is made for less than fair3-16
market value, the welfare division may pursue any remedy available3-17
pursuant to chapter 112 of NRS with respect to the transfer.3-18
4. The amount of Medicaid paid to or on behalf of a person is a claim3-19
against the estate in any probate proceeding only at a time when there is no3-20
surviving spouse or surviving child who is under 21 years of age or is blind3-21
or permanently and totally disabled.3-22
5. The administrator may elect not to file a claim against the estate of a3-23
recipient of Medicaid or his spouse if he determines that the filing of the3-24
claim will cause an undue hardship for the spouse or other survivors of the3-25
recipient. The administrator shall adopt regulations defining the3-26
circumstances that constitute an undue hardship.3-27
6. Any recovery of money obtained pursuant to this section must be3-28
applied first to the cost of recovering the money. Any remaining money3-29
must be divided among the Federal Government, the department and the3-30
county in the proportion that the amount of assistance each contributed to3-31
the recipient bears to the total amount of the assistance contributed.3-32
7.3-33
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estate of a recipient pursuant to this section must be paid in cash to the4-2
extent of:4-3
(a) The amount of Medicaid paid to or on behalf of the recipient after4-4
October 1, 1993; or4-5
(b) The value of the remaining assets in the undivided estate,4-6
whichever is less.4-7
Sec. 4. NRS 422.29355 is hereby amended to read as follows: 422.29355 1. The welfare division may, to the extent not prohibited4-9
by federal law, petition for the imposition of a lien pursuant to the4-10
provisions of NRS 108.850 against real or personal property of a recipient4-11
of Medicaid as follows:4-12
(a) The welfare division may obtain a lien against a recipient’s property,4-13
both real or personal, before or after his death in the amount of assistance4-14
paid or to be paid on his behalf if the court determines that assistance was4-15
incorrectly paid for the recipient.4-16
(b) The welfare division may seek a lien against the real property of a4-17
recipient at any age before his death in the amount of assistance paid or to4-18
be paid for him if he is an inpatient in a nursing facility, intermediate care4-19
facility for the mentally retarded or other medical institution and the4-20
welfare division determines, after notice and opportunity for a hearing in4-21
accordance with its regulations, that he cannot reasonably be expected to be4-22
discharged and return home.4-23
2. No lien may be placed on a recipient’s home pursuant to paragraph4-24
(b) of subsection 1 for assistance correctly paid if:4-25
(a) His spouse;4-26
(b) His child who is under 21 years of age or blind or permanently and4-27
totally disabled as determined in accordance with 42 U.S.C. § 1382c; or4-28
(c) His brother or sister who is an owner or part owner of the home and4-29
who was residing in the home for at least 1 year immediately before the4-30
date the recipient was admitted to the medical institution,4-31
is lawfully residing in the home.4-32
3. Upon the death of a recipient the welfare division may seek a lien4-33
upon his undivided estate as defined in NRS 422.054.4-34
4. The state welfare administrator shall release a lien pursuant to this4-35
section:4-36
(a) Upon notice by the recipient or his representative to the4-37
administrator that the recipient has been discharged from the medical4-38
institution and has returned home;4-39
(b) If the lien was incorrectly determined; or4-40
(c) Upon satisfaction of the welfare division’s claim.4-41
Sec. 5. NRS 147.070 is hereby amended to read as follows:4-42
147.070 1. Every claim for an amount of $250 or more filed with the4-43
clerk must be supported by the affidavit of the claimant that:5-1
(a) The amount is justly due (or if the claim is not yet due, that the5-2
amount is a just demand and will be due on the ..... day of ........).5-3
(b) No payments have been made thereon which are not credited.5-4
(c) There are no offsets to the amount demanded to the knowledge of the5-5
claimant or other affiant.5-6
2. Every claim filed with the clerk must contain the mailing address of5-7
the claimant. Any written notice mailed by an executor or administrator to5-8
the claimant at the address furnished is proper notice.5-9
3. When the affidavit is made by any other person than the claimant,5-10
the reasons why it is not made by the claimant must be set forth in the5-11
affidavit.5-12
4. The oath may be taken before any person authorized to administer5-13
oaths.5-14
5. The amount of interest must be computed and included in the5-15
statement of the claim and the rate of interest determined.5-16
6.5-17
in its discretion, for good cause shown, allow a defective claim or affidavit5-18
to be corrected or amended on application made at any time before the5-19
filing of the final account.5-20
7. The court shall allow the welfare division of the department of5-21
human resources to amend at any time before the filing of the final5-22
account a claim for the payment of benefits for Medicaid that the5-23
division identifies after the original claim has been filed. Sec. 6. NRS 147.110 is hereby amended to read as follows:5-25
147.110 1. Within 15 days after the time for filing claims has5-26
expired, as provided in this chapter, the executor or administrator shall5-27
examine all claims filed and shall either endorse on each claim his5-28
allowance or rejection, with the day and the year thereof, or shall file a5-29
notice of allowance or rejection with the date and the year thereof, and such5-30
notice of allowance or rejection shall be attached to the claim allowed or5-31
rejected.5-32
2. Within 5 days after the 15 days specified in subsection 1, the5-33
executor or administrator shall present all claims allowed by him to the5-34
district judge for his approval or rejection.5-35
3. If an executor or administrator5-36
neglects to endorse on a claim his allowance or rejection within 15 days, as5-37
specified in this section, or5-38
rejection, the claim shall be deemed rejected, but the executor or5-39
administrator may, nevertheless, allow the claim at any time before the5-40
filing of the final account.6-1
4. If a claim is deemed rejected pursuant to subsection 3, the6-2
executor or administrator must, not more than 10 days after the6-3
rejection, provide written notice of the rejection by registered mail to all6-4
affected creditors.~