Report Title:

Medicaid Liens

 

Description:

Clarifies existing law so the notice of the intent to place a lien on the real property of a Medicaid recipient will be valid if provided to the recipient or a designated representative of the recipient.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1100

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO MEDICAID LIENS.

 

 

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

 


     SECTION 1.  The legislature finds that it is necessary to clarify the law regarding the validity of any notice of intent to place a lien on real property or the filing of any claim relating to medicaid.  The purpose of this Act is to clarify that when the department of human services gives notice of its intent to place a lien on real property or file any claim, to any medicaid recipient, or medicaid recipient's legal representative, surviving spouse, child, or designated representative, that notice is valid for purposes of any subsequent placement of any lien or the filing of any claim.

     SECTION 2.  Section 346-29.5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  The department shall issue certificates of release or partial release upon satisfaction or partial satisfaction of the liens.  Certificates of release or partial release of any real property lien issued by the director or the director's authorized representative shall be recorded in the bureau of conveyances.  The director shall consider issuing conditional certificates of release in cases of extreme hardship as set out in rules adopted under chapter 91.  The registrar shall forthwith cause the same to be indexed in the general indexes in a like manner as the original liens.  No fee shall be charged for any of the recording.  The liens herein provided for shall take priority over any other lien subsequently acquired or recorded except tax liens and except that, in the estate of a beneficiary, the actual funeral expenses, the expenses of the last sickness, the cost of administration of the estate, and any allowance made to the surviving spouse and children for their support during administration of the estate, shall have priority and preference over the liens herein imposed, and over any claim against an estate filed under section 346-37.

     Any notice of intent to file a lien or any claim delivered to any medicaid recipient, or any medicaid recipient's legal representative, surviving spouse, child, or designated representative shall be valid notice of the department's intent to file a lien or claim.

     The liens shall be enforceable by the department by suit in the appropriate court or shall be enforceable as a claim against the estate of the recipient under section 346-37, having priority over all other debts except taxes, the actual funeral expenses, the expenses of last sickness, the cost of administration of the estate, and any allowance made to the surviving spouse and children for their support during administration of the estate.

     The liens shall be enforceable as a claim under section 346-37 against the estate of a recipient under any circumstances if the estate is admitted to probate at the instance of any interested party.

     Whenever the department is satisfied that the collection of the amount of assistance paid a recipient will not be jeopardized or that the release or waiver of the priority of the liens against the recipient's property, in whole or in part, is necessary to provide for the maintenance or support of the recipient, the recipient's spouse, or any minor or incapacitated child, it may release or waive the priority of the liens with respect to all or any part of the real property.

     The recipient, the recipient's heirs, personal representatives, or assigns may discharge the liens at any time by paying the amount thereof to the department which shall execute a satisfaction thereof.  The department may at its discretion compromise the collection of any such liens, but such compromise shall be made only when the recipient, the recipient's heirs, personal representatives, or assigns prove that the collection of the full amount of the liens or claim would cause undue hardship or the liens or claim are otherwise uncollectible.

     The proceeds from the enforcement, payment, or compromise of the liens shall be paid into the treasury of the State.  If the amount of assistance reflected by the proceeds was paid in part by federal funds, the proper portion of these funds shall be paid by the director of finance to the treasury of the United States.  The director of finance shall thereupon report such payment to the department.  If the federal funds are not paid directly into the treasury of the United States, these federal funds shall be credited by the director of finance to the department for expenditure for assistance without need for further appropriation.

     If at any time the federal government, or any agency or instrumentality thereof, requires, as a condition to any grant of assistance, the performance of conditions inconsistent with this section, or desisting from actions provided by this section, the governor may suspend, upon a finding to that effect and to the extent of such requirement, any provisions of this section to the end that such federal assistance may be received.

     The department shall submit an annual report to the legislature, which shall include a list of liens held by the department on real property.  This report shall include but not be limited to a description of the value of the liens, the legal status of the liens, and when the liens were initiated.

     The department shall adopt rules pursuant to chapter 91 necessary for the purposes of this section."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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By Request