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.