JKC H.B. 446 75(R)BILL ANALYSIS HUMAN SERVICES H.B. 446 By: Maxey 3-10-97 Committee Report (Unamended) BACKGROUND Currently, Rider 11 (a) directs the Texas Department of Human Services to use state funds to continue medical assistance for individuals who lose their Medicaid benefits due to an increase in federal or private pension benefits. This legislation instructs the Texas Department on Aging to use existing state funds to assist individuals in setting up a trust to which increases in federal or private pension benefits would be diverted. The legislation discontinues the appropriation of 100% State funds to cover long-term institutional care and home/community-based waiver services for individuals who were denied Medicaid benefits due to such increases to pensions. This legislation will ensure the continuation of care for these individuals. Individuals whose income increases slightly above the Medicaid income limits will be able to depend upon federal funds, rather than state funds, to continue their care. PURPOSE This legislation establishes trusts for individuals who become ineligible for Medicaid due to an increase in federal or private pension benefits so that they may continue to receive Medicaid. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS Section 1.Subchapter B, Chapter 101, Human Resources Code is amended by adding Section 101.031 as follows: Section 101.031. Trusts for certain recipients of Medicaid. (a)An area agency on aging is instructed to contract with private attorneys to establish trusts for individuals who would otherwise be ineligible for Medicaid. (b)The department will use available state funds for use in contracting with attorneys. Section 2.This act takes affect September 1, 1997. Section 3.Emergency clause.