S.B. No. 22
 
AN ACT
relating to long-term care insurance and a partnership for
long-term care program and to the eligibility for certain home and
community-based services.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  (a)  Section 32.061, Human Resources Code, is
amended to read as follows:
       Sec. 32.061.  COMMUNITY ATTENDANT SERVICES PROGRAM.  
(a)  Any home and community-based services that the department
provides under Section 1929, Social Security Act (42 U.S.C. Section
1396t) and its subsequent amendments to functionally disabled
individuals who have income that exceeds the limit established by
federal law for Supplemental Security Income (SSI) (42 U.S.C.
Section 1381 et seq.) and its subsequent amendments shall be
provided through the community attendant services program.
       (b) In determining an applicant's eligibility for home and
community-based services described by Subsection (a), the
department shall exclude $20 of unearned or earned income from the
applicant's monthly income.
       (b)  For purposes of this section only, the effective date
will be September 1, 2007.
       SECTION 2.  Chapter 32, Human Resources Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. PARTNERSHIP FOR LONG-TERM CARE PROGRAM
       Sec. 32.101.  DEFINITIONS. In this subchapter:
             (1)  "Approved plan" means a long-term care benefit
plan that is approved by the Texas Department of Insurance under
Subchapter C, Chapter 1651, Insurance Code.
             (2)  "Asset disregard" means the total equity value of
assets and resources not exempt under rules governing the medical
assistance program that are disregarded in determining eligibility
for the medical assistance program and in determining estate
recovery obligations.
             (3)  "Asset protection" means the right extended to a
plan holder of an approved plan to dollar-for-dollar asset
disregard under the medical assistance program.
             (4)  "Dollar-for-dollar asset disregard" means an
asset disregard in which the amount of the disregard is equal to the
sum of qualifying benefit payments made on behalf of the qualified
plan holder.
             (5)  "Executive commissioner" means the executive
commissioner of the Health and Human Services Commission.
             (6)  "Partnership for long-term care program" means the
program established under this subchapter and Subchapter C, Chapter
1651, Insurance Code.
       Sec. 32.102.  PARTNERSHIP FOR LONG-TERM CARE PROGRAM. The
partnership for long-term care program is administered as part of
the medical assistance program by the department with the
assistance of the Texas Department of Insurance.  The program must
be consistent with provisions governing the expansion of a state
long-term care partnership program established under the federal
Deficit Reduction Act of 2005 (Pub. L. No. 109-171).
       Sec. 32.103.  ASSET DISREGARD.  (a)  To the extent allowed
by the federal Deficit Reduction Act of 2005 (Pub. L. No. 109-171)
and other federal law, the executive commissioner, in adopting
rules and standards governing the medical assistance program, shall
allow for dollar-for-dollar asset disregard in determining
eligibility for medical assistance for an individual receiving
long-term care services if the individual is or was covered by a
long-term care benefit plan providing coverage for long-term care
that meets the applicable minimum benefit standards of the
commissioner of the Texas Department of Insurance under Subchapter
C, Chapter 1651, Insurance Code, and other requirements for
approval under the partnership for long-term care program.
       (b)  The department may not consider the resources of an
individual who has used all or part of the individual's benefits
under an approved plan to the extent those resources are the subject
of a dollar-for-dollar asset disregard in determining:
             (1)  eligibility for medical assistance under the
medical assistance program;
             (2)  the amount of medical assistance provided; or
             (3)  any subsequent recovery by this state from the
individual's estate for medical assistance provided to the
individual.
       (c)  The department may not provide to an individual eligible
for medical assistance under this section those medical assistance
services covered under the medical assistance program that are also
covered by the individual's benefits under the approved plan until
the individual has fully exhausted the individual's benefits under
the plan.
       Sec. 32.104.  RECIPROCAL AGREEMENTS.  The department may
enter into reciprocal agreements with other states to extend asset
protection to a resident of this state who purchased a long-term
care benefit plan in another state that has a substantially similar
asset disregard program.
       Sec. 32.105.  TRAINING; INFORMATION AND TECHNICAL
ASSISTANCE.  The Health and Human Services Commission shall provide
information and technical assistance to the Texas Department of
Insurance regarding that department's role in ensuring that each
individual who sells a long-term care benefit plan under the
partnership for long-term care program receives training and
demonstrates evidence of an understanding of these plans as
required by Section 1651.105, Insurance Code.  The training must
satisfy the training requirements imposed under the provisions
governing the expansion of a state long-term care partnership
program established under the federal Deficit Reduction Act of 2005
(Pub. L. No. 109-171).
       Sec. 32.106.  RULES.  (a)  The executive commissioner shall
adopt rules as necessary to administer the partnership for
long-term care program and to implement this subchapter.
       (b)  In adopting rules under this section, the executive
commissioner shall:
             (1)  provide for dollar-for-dollar asset disregard and
asset protection for purchasers of an approved plan; and
             (2)  count benefits paid under the approved plan toward
the dollar-for-dollar asset disregard to the extent the benefits
are provided for covered services under the approved plan.
       Sec. 32.107.  BIENNIAL REPORT.  (a)  Not later than
September 30 of each even-numbered year, the department shall
submit a report to the legislature on the progress of the
partnership for long-term care program during the preceding
biennium.  The report must include:
             (1)  the number of approved plans sold during each year
of the preceding biennium;
             (2)  the average age of individuals purchasing approved
plans during each year of the preceding biennium; and
             (3)  a recommendation on whether to continue the
program.
       (b)  The department may request information from the Texas
Department of Insurance as necessary to prepare the report required
by this section.
       SECTION 3.  Chapter 1651, Insurance Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C.  PARTNERSHIP FOR LONG-TERM CARE PROGRAM
       Sec. 1651.101.  DEFINITIONS. In this subchapter:
             (1)  "Approved plan" means a long-term care benefit
plan that is approved by the department under this subchapter.
             (2)  "Dollar-for-dollar asset disregard" and "asset
protection" have the meanings assigned by Section 32.101, Human
Resources Code.
             (3)  "Medical assistance program" means the medical
assistance program established under Chapter 32, Human Resources
Code.
             (4)  "Partnership for long-term care program" means the
program established under Subchapter C, Chapter 32, Human Resources
Code, and this subchapter.
       Sec. 1651.102.  APPLICABILITY.  Except to the extent of a
conflict, Subchapters A and B apply to a plan issued in accordance
with this subchapter.
       Sec. 1651.103.  ASSISTANCE OF DEPARTMENT.  The department
shall assist the Health and Human Services Commission as necessary
for the commission to perform its duties and functions with respect
to the administration of the partnership for long-term care
program.
       Sec. 1651.104.  LONG-TERM CARE INSURANCE POLICY FOR
PARTNERSHIP FOR LONG-TERM CARE PROGRAM.  The commissioner, in
consultation with the Health and Human Services Commission, shall
adopt minimum standards for a long-term care benefit plan that may
qualify as an approved plan under the partnership for long-term
care program.  The standards must be consistent with provisions
governing the expansion of a state long-term care partnership
program established under the federal Deficit Reduction Act of 2005
(Pub. L. No. 109-171).
       Sec. 1651.105.  REQUIRED TRAINING. (a)  Each individual who
sells a long-term care benefit plan under the partnership for
long-term care program must complete training and demonstrate
evidence of an understanding of these plans and how the plans relate
to other public and private coverage of long-term care.
       (b)  Each long-term care benefit plan issuer that offers a
plan under the partnership for long-term care program shall certify
to the commissioner, in the form required by the commissioner, that
each individual who sells the plan on behalf of the issuer complies
with the requirements of this section.
       Sec. 1651.106.  EFFECT OF DISCONTINUATION OF PROGRAM ON
POLICY.  If the partnership for long-term care program is
discontinued, an individual who purchased an approved plan before
the date the program is discontinued remains eligible to receive
dollar-for-dollar asset disregard and asset protection under the
medical assistance program.
       Sec. 1651.107.  RULES.  The commissioner may adopt rules as
necessary to implement this subchapter.
       SECTION 4.  Subchapter B, Chapter 531, Government Code, is
amended by adding Section 531.0841 to read as follows:
       Sec. 531.0841.  LONG-TERM CARE INSURANCE AWARENESS AND
EDUCATION CAMPAIGN.  (a)  The commission, in consultation with the
Department of Aging and Disability Services and the Texas
Department of Insurance, shall develop and implement a public
awareness and education campaign designed to:
             (1)  educate the public on the cost of long-term care,
including the limits of Medicaid eligibility and the limits of
Medicare benefits;
             (2)  educate the public on the value and availability
of long-term care insurance; and
             (3)  encourage individuals to obtain long-term care
insurance.
       (b)  The Department of Aging and Disability Services and the
Texas Department of Insurance shall cooperate with and assist the
commission in implementing the campaign under this section.
       (c)  The commission may coordinate the implementation of the
campaign under this section with any other state outreach campaign
or activity relating to long-term care issues.
       SECTION 5.  The Health and Human Services Commission shall
amend this state's Medicaid plan as necessary to allow for
dollar-for-dollar asset disregard and asset protection for
purchasers of an approved policy under the partnership for
long-term care program established under Subchapter C, Chapter 32,
Human Resources Code, as added by this Act.
       SECTION 6.  If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
       SECTION 7.  Except as otherwise provided by this Act, this
Act takes effect March 1, 2008.
______________________________    ______________________________
President of the Senate             Speaker of the House
       I hereby certify that S.B. No. 22 passed the Senate on
April 26, 2007, by the following vote: Yeas 30, Nays 0; and that
the Senate concurred in House amendment on May 18, 2007, by the
following vote: Yeas 29, Nays 0.
______________________________ 
   Secretary of the Senate
       I hereby certify that S.B. No. 22 passed the House, with
amendment, on May 15, 2007, by the following vote: Yeas 137,
Nays 0, one present not voting.
______________________________ 
   Chief Clerk of the House
Approved:
______________________________ 
______________________________ 
            Date
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______________________________ 
          Governor