Human services; medical services; federal work incentives improvement act; enact conforming state provision to allow continued insurance coverage for the working disabled. HUMAN SERVICES: Medical services; LABOR: Employment incentives; LABOR: Health and safety; DISABILITIES: A bill to amend 1939 PA 280, entitled "The social welfare act," by amending section 106 (MCL 400.106), as amended by 1990 PA 145, and by adding section 106a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 106. (1) A medically indigent individual is defined 2 as: 3 (a) An individual receivingaid to dependent children4 FAMILY INDEPENDENCE PROGRAM BENEFITS or an individual receiving 5 supplemental security income under title XVIof the social6security act, 42 U.S.C. 1381 to 1385,or state supplementation 7thereunderUNDER TITLE XVI subject to limitations imposed by 8 the director pursuant to title XIX. 9 (b)AnEXCEPT AS PROVIDED IN SECTION 106A, AN individual 10meetingWHO MEETS all of the following conditions: 04119'99 LTB 2 1 (i) The individual hasmade applicationAPPLIED in the 2 mannerprescribed bythestate departmentFAMILY INDEPENDENCE 3 AGENCY PRESCRIBES. 4 (ii) The individual's need for the type of medical assist- 5 ance available under this act for whichapplication has been6madeTHE INDIVIDUAL APPLIED has been professionally established 7 and payment for it is not available through the legal obligation 8 of a PUBLIC OR PRIVATE contractor, public or private,to pay 9 or provide for the care without regard to the income or resources 10 of the patient.The state department shall be subrogated to any11right of recovery which a patient may have for the cost of hospi-12talization, pharmaceutical services, physician services, nursing13services, and other medical services not to exceed the amount of14funds expended by the department for the care and treatment of15the patient. The patient or other person acting in the patient's16behalf shall execute and deliver an assignment of claim or other17authorizations as necessary to secure the right of recovery to18the department. A payment may be withheld under this act for19medical assistance for an injury or disability for which the20patient is entitled to medical care or reimbursement for the cost21of medical care under sections 3101 to 3179 of the insurance code22of 1956, Act No. 218 of the Public Acts of 1956, as amended,23being sections 500.3101 to 500.3179 of the Michigan Compiled24Laws, or under any other policy of insurance providing medical or25hospital benefits, or both, for the patient unless the patient's26entitlement to that medical care or reimbursement is at issue.27If a payment is made, the state department, to enforce its04119'99 3 1subrogation right, may do either of the following: (a) intervene2or join in an action or proceeding brought by the injured, dis-3eased, or disabled person, the person's guardian, personal repre-4sentative, estate, dependents, or survivors, against the third5person who may be liable for the injury, disease, or disability,6or against contractors, public or private, who may be liable to7pay or provide medical care and services rendered to an injured,8diseased, or disabled patient; (b) institute and prosecute a9legal proceeding against a third person who may be liable for the10injury, disease, or disability, or against contractors, public or11private, who may be liable to pay or provide medical care and12services rendered to an injured, diseased, or disabled patient,13in state or federal court, either alone or in conjunction with14the injured, diseased, or disabled person, the person's guardian,15personal representative, estate, dependents, or survivors. The16state department may institute the proceedings in its own name or17in the name of the injured, diseased, or disabled person, the18person's guardian, personal representative, estate, dependents,19or survivors. As provided in section 6023 of the revised judica-20ture act of 1961, Act No. 236 of the Public Acts of 1961, as21amended, being section 600.6023 of the Michigan Compiled Laws,22the state department, in enforcing its subrogation right, shall23not satisfy a judgment against the third person's property which24is exempt from levy and sale. The injured, diseased, or disabled25person may proceed in his or her own name, collecting the costs26without the necessity of joining the state department or the27state as a named party. The injured, diseased, or disabled04119'99 4 1person shall notify the state department of the action or2proceeding entered into upon commencement of the action or3proceeding. An action taken by the state or the state department4in connection with the right of recovery afforded by this section5does not operate to deny the injured, diseased, or disabled6person any part of the recovery beyond the costs expended on the7person's behalf by the state department. The costs of legal8action initiated by the state shall be paid by the state. A pay-9ment shall not be made under this act for medical assistance for10an injury, disease, or disability for which the patient is enti-11tled to medical care or the cost of medical care under the12worker's disability compensation act of 1969, Act No. 317 of the13Public Acts of 1969, as amended, being sections 418.101 to14418.941 of the Michigan Compiled Laws; except that payment may be15made if an appropriate application for medical care or the cost16of the medical care has been made under Act No. 317 of the Public17Acts of 1969, as amended, entitlement has not been finally deter-18mined, and an arrangement satisfactory to the state department19has been made for reimbursement if the claim under Act No. 317 of20the Public Acts of 1969, as amended, is finally sustained.21 (iii)TheEXCEPT AS PROVIDED IN SECTION 106A, THE individ- 22 ual has an annual incomewhichTHAT is below, or because of 23 medical expenses falls below, the protected basic maintenance 24 level. The protected basic maintenance level for 1-person and 25 2-person families shall be at least 100% of the higher of the 26 payment standards generally used to determine eligibility in the 27aid to dependent childrenFAMILY INDEPENDENCE program and the 04119'99 5 1 supplemental security income program under title XVI,of the2social security act, 42 U.S.C. 1381 to 1385,including state 3 supplementation. For families of 3 or more persons, the pro- 4 tected basic maintenance level shall be at least 100% of the pay- 5 ment standard generally used to determine eligibility in theaid6to dependent childrenFAMILY INDEPENDENCE program. These levels 7 shall recognize regional variations and shall not exceed 133-1/3% 8 of the payment standard generally used to determine eligibility 9 in theaid to dependent childrenFAMILY INDEPENDENCE program. 10 (iv) The individual, ifan aid to dependent childrenA 11 FAMILY INDEPENDENCE PROGRAM related individual and living alone, 12 has liquid or marketable assets of not more than $1,500.00 in 13 value, or, if a 2-person family, the family has liquid or market- 14 able assets of not more than $2,000.00 in value. Thestate15departmentFAMILY INDEPENDENCE AGENCY shall establish comparable 16 liquid or marketable asset amounts for larger family groups. 17 Excluded in making the determination of the value of liquid or 18 marketable assets are the values of: the homestead; clothing; 19 household effects; $1,000.00 of cash surrender value of life 20 insurance, except that if the health of the insuredis such as21to makeMAKES continuance of the insurance desirable, the entire 22 cash surrender value of life insurance isto beexcluded from 23 consideration, up to themaximumsMAXIMUM provided or allowed 24 by federal regulations and in accordance with the rules of the 25state departmentFAMILY INDEPENDENCE AGENCY; the fair market 26 value of tangible personal property used in earning income; an 27 amount paid as judgment or settlement for damages suffered as a 04119'99 6 1 result of exposure to agent orange, as defined in section 5701 of 2 the public health code,Act No. 368 of the Public Acts of 1978,3being section 333.5701 of the Michigan Compiled Laws1978 PA 4 368, MCL 333.5701; and a space or plot purchased for the purposes 5 of burial for the person. For individuals related to the title 6 XVI program,of the social security act, 42 U.S.C. 1381 to71385,the appropriate resource levels and property exemptions 8 specified in title XVI shall be used. 9 (v) The individual is not an inmate of a public institution 10 except as a patient in a medical institution. 11 (vi) The individual meets the eligibility standards for sup- 12 plemental security income under title XVIof the social security13act, 42 U.S.C. 1381 to 1385,or for state supplementation under 14 the act, subject to limitations imposed by the director pursuant 15 to title XIX; or meets the eligibility standards foraid to16dependent childrenFAMILY INDEPENDENCE PROGRAM BENEFITS, except 17 for income or income and resources; or is a child from 18 to 21 18 years of age and his or her adult caretaker would be eligible for 19aid to dependent childrenFAMILY INDEPENDENCE PROGRAM BENEFITS 20 except for age, income, or income and resources; or is a child 21 under 21 years of age and is from a family whose income is below 22 the basic maintenance level. 23 (2) As used in this act, "medical institution" means a state 24 licensed or approved hospital, nursing home, medical care facili- 25 ty, psychiatric hospital, or other facility or identifiable unit 26thereofOF A LISTED INSTITUTION certified as meeting 04119'99 7 1 established standards for a nursing home or hospital in 2 accordance with the laws of this state. 3 (3) THE FAMILY INDEPENDENCE AGENCY IS SUBROGATED TO A RIGHT 4 OF RECOVERY THAT A PATIENT HAS FOR THE COST OF HOSPITALIZATION, 5 PHARMACEUTICAL SERVICES, PHYSICIAN SERVICES, NURSING SERVICES, 6 AND OTHER MEDICAL SERVICES NOT TO EXCEED THE AMOUNT OF MONEY 7 EXPENDED BY THE DEPARTMENT FOR THE CARE AND TREATMENT OF THE 8 PATIENT. THE PATIENT OR OTHER PERSON ACTING IN THE PATIENT'S 9 BEHALF SHALL EXECUTE AND DELIVER AN ASSIGNMENT OF CLAIM OR OTHER 10 AUTHORIZATION AS NECESSARY TO SECURE THE RIGHT OF RECOVERY TO THE 11 DEPARTMENT. A PAYMENT MAY BE WITHHELD UNDER THIS ACT FOR MEDICAL 12 ASSISTANCE FOR AN INJURY OR DISABILITY FOR WHICH THE PATIENT IS 13 ENTITLED TO MEDICAL CARE OR REIMBURSEMENT FOR THE COST OF MEDICAL 14 CARE UNDER SECTIONS 3101 TO 3179 OF THE INSURANCE CODE OF 1956, 15 1956 PA 218, MCL 500.3101 TO 500.3179, OR UNDER ANOTHER POLICY OF 16 INSURANCE PROVIDING MEDICAL OR HOSPITAL BENEFITS, OR BOTH, FOR 17 ANOTHER THE PATIENT UNLESS THE PATIENT'S ENTITLEMENT TO THAT MED- 18 ICAL CARE OR REIMBURSEMENT IS AT ISSUE. IF A PAYMENT IS MADE, 19 THE FAMILY INDEPENDENCE AGENCY, TO ENFORCE ITS SUBROGATION RIGHT, 20 MAY DO EITHER OF THE FOLLOWING: 21 (A) INTERVENE OR JOIN IN AN ACTION OR PROCEEDING BROUGHT BY 22 THE INJURED, DISEASED, OR DISABLED PERSON, OR THE PERSON'S GUARD- 23 IAN, PERSONAL REPRESENTATIVE, ESTATE, DEPENDENTS, OR SURVIVORS, 24 AGAINST THE THIRD PERSON WHO MAY BE LIABLE FOR THE INJURY, DIS- 25 EASE, OR DISABILITY OR AGAINST PUBLIC OR PRIVATE CONTRACTORS WHO 26 MAY BE LIABLE TO PAY OR PROVIDE MEDICAL CARE AND SERVICES 27 RENDERED TO AN INJURED, DISEASED, OR DISABLED PATIENT. 04119'99 8 1 (B) INSTITUTE AND PROSECUTE A LEGAL PROCEEDING AGAINST A 2 THIRD PERSON WHO MAY BE LIABLE FOR THE INJURY, DISEASE, OR DIS- 3 ABILITY OR AGAINST A PUBLIC OR PRIVATE CONTRACTOR WHO MAY BE 4 LIABLE TO PAY OR PROVIDE MEDICAL CARE AND SERVICES RENDERED TO AN 5 INJURED, DISEASED, OR DISABLED PATIENT, IN STATE OR FEDERAL 6 COURT, EITHER ALONE OR IN CONJUNCTION WITH THE INJURED, DISEASED, 7 OR DISABLED PERSON OR THE PERSON'S GUARDIAN, PERSONAL REPRESENTA- 8 TIVE, ESTATE, DEPENDENT, OR SURVIVOR. 9 (4) IN ENFORCING ITS SUBROGATION RIGHT UNDER SUBSECTION (3), 10 THE FAMILY INDEPENDENCE AGENCY MAY INSTITUTE THE PROCEEDINGS IN 11 ITS OWN NAME OR IN THE NAME OF THE INJURED, DISEASED, OR DISABLED 12 PERSON OR THE PERSON'S GUARDIAN, PERSONAL REPRESENTATIVE, ESTATE, 13 DEPENDENT, OR SURVIVOR. AS PROVIDED IN SECTION 6023 OF THE 14 REVISED JUDICATURE ACT OF 1961, 1961 PA 236, MCL 600.6023, THE 15 FAMILY INDEPENDENCE AGENCY, IN ENFORCING ITS SUBROGATION RIGHT, 16 SHALL NOT SATISFY A JUDGMENT AGAINST THE THIRD PERSON'S PROPERTY 17 THAT IS EXEMPT FROM LEVY AND SALE. 18 (5) THE INJURED, DISEASED, OR DISABLED PERSON MAY PROCEED IN 19 HIS OR HER OWN NAME, COLLECTING THE COSTS WITHOUT THE NECESSITY 20 OF JOINING THE FAMILY INDEPENDENCE AGENCY OR THE STATE AS A NAMED 21 PARTY. THE INJURED, DISEASED, OR DISABLED PERSON SHALL NOTIFY 22 THE FAMILY INDEPENDENCE AGENCY OF THE ACTION OR PROCEEDING 23 ENTERED INTO UPON COMMENCEMENT OF THE ACTION OR PROCEEDING. 24 (6) AN ACTION TAKEN BY THE STATE OR THE FAMILY INDEPENDENCE 25 AGENCY IN CONNECTION WITH THE RIGHT OF RECOVERY AFFORDED BY THIS 26 SECTION DOES NOT DENY THE INJURED, DISEASED, OR DISABLED PERSON A 27 PART OF THE RECOVERY BEYOND THE COSTS EXPENDED ON THE PERSON'S 04119'99 9 1 BEHALF BY THE FAMILY INDEPENDENCE AGENCY. THE COSTS OF LEGAL 2 ACTION INITIATED BY THE STATE SHALL BE PAID BY THE STATE. A PAY- 3 MENT SHALL NOT BE MADE UNDER THIS ACT FOR MEDICAL ASSISTANCE FOR 4 AN INJURY, DISEASE, OR DISABILITY FOR WHICH THE PATIENT IS ENTI- 5 TLED TO MEDICAL CARE OR THE COST OF MEDICAL CARE UNDER THE 6 WORKER'S DISABILITY COMPENSATION ACT OF 1969, 1969 PA 317, MCL 7 418.101 TO 418.941; EXCEPT THAT PAYMENT MAY BE MADE IF AN APPRO- 8 PRIATE APPLICATION FOR MEDICAL CARE OR THE COST OF THE MEDICAL 9 CARE HAS BEEN MADE UNDER THE WORKER'S DISABILITY COMPENSATION ACT 10 OF 1969, 1969 PA 317, MCL 418.101 TO 418.941, ENTITLEMENT HAS NOT 11 BEEN FINALLY DETERMINED, AND AN ARRANGEMENT SATISFACTORY TO THE 12 FAMILY INDEPENDENCE AGENCY HAS BEEN MADE FOR REIMBURSEMENT IF THE 13 CLAIM IS FINALLY SUSTAINED. 14 SEC. 106A. (1) THE DEPARTMENT OF COMMUNITY HEALTH SHALL 15 IMPLEMENT A PROGRAM WITH PROVISIONS AS PRESCRIBED BY THIS SEC- 16 TION, WHICH PROGRAM OFFERS MEDICAL ASSISTANCE AND SUPPLEMENTARY 17 BENEFITS TO A PERSON WHO IS EITHER OF THE FOLLOWING: 18 (A) A PERSON WHO IS AT LEAST 16 YEARS OF AGE AND YOUNGER 19 THAN 65 YEARS OF AGE AND WHO WOULD OTHERWISE BE ELIGIBLE EXCEPT 20 THAT THE PERSON HAS EARNINGS IN EXCESS OF THE LIMIT ESTABLISHED 21 BY THE DEPARTMENT OF COMMUNITY HEALTH. 22 (B) A PERSON WHO IS EMPLOYED WITH A MEDICALLY IMPROVED DIS- 23 ABILITY AND WHOSE ASSETS, RESOURCES, AND EARNED AND UNEARNED 24 INCOME DO NOT EXCEED THE LIMIT ESTABLISHED BY THE DEPARTMENT OF 25 COMMUNITY HEALTH. 26 (2) THE DEPARTMENT OF COMMUNITY HEALTH MAY REQUIRE A PERSON 27 ELIGIBLE FOR BENEFITS UNDER SUBSECTION (1) TO PAY A PREMIUM OR 04119'99 10 1 OTHER COST-SHARING CHARGE SET ON A SLIDING SCALE BASED ON INCOME 2 THAT THE DEPARTMENT OF COMMUNITY HEALTH DETERMINES. 3 (3) THE DEPARTMENT OF COMMUNITY HEALTH MAY REQUIRE A PERSON 4 ELIGIBLE FOR BENEFITS UNDER SUBSECTION (1) TO PAY 100% OF A PRE- 5 MIUM IN A YEAR THAT THE PERSON WHO HAS INCOME THAT EXCEEDS 250% 6 OF THE INCOME OFFICIAL POVERTY LINE APPLICABLE TO A FAMILY OF THE 7 SIZE INVOLVED. IF THE PERSON WHO HAS INCOME FOR A YEAR THAT DOES 8 NOT EXCEED 450% OF THE INCOME OFFICIAL POVERTY LINE, THE REQUIRE- 9 MENT TO PAY THE PREMIUM ONLY APPLIES TO THE EXTENT THAT THE PRE- 10 MIUM DOES NOT EXCEED 7.5% OF THE INCOME. 11 (4) THE DEPARTMENT OF COMMUNITY HEALTH SHALL REQUIRE A 12 PERSON TO PAY 100% OF THE PREMIUM FOR A YEAR WHEN THE PERSON'S 13 ADJUSTED GROSS INCOME AS DEFINED IN SECTION 62 OF THE INTERNAL 14 REVENUE CODE OF 1986 EXCEEDS $75,000.00. THE DEPARTMENT OF COM- 15 MUNITY HEALTH MAY ELECT TO SUBSIDIZE THE PREMIUM BY USING STATE 16 FUNDS ONLY THAT ARE NOT MATCHED BY FEDERAL FUNDS UNDER TITLE 17 XIX. 18 (5) THE DEPARTMENT OF COMMUNITY HEALTH SHALL MAKE PERSONAL 19 ASSISTANCE SERVICES AVAILABLE TO A PERSON ELIGIBLE FOR MEDICAL 20 ASSISTANCE AND SUPPLEMENTARY BENEFITS UNDER SUBSECTION (1) TO THE 21 EXTENT NECESSARY TO ENABLE THE PERSON TO REMAIN EMPLOYED. 22 (6) THE DEPARTMENT OF COMMUNITY HEALTH SHALL SUBMIT AN 23 ANNUAL REPORT ON THE USE OF FEDERAL FUNDS TO THE SECRETARY. THE 24 REPORT SHALL INCLUDE THE PERCENTAGE INCREASE IN THE NUMBER OF 25 TITLE II AND TITLE XVI DISABILITY BENEFICIARIES IN THE STATE WHO 26 RETURN TO WORK. 04119'99 11 1 (7) THE DEPARTMENT OF COMMUNITY HEALTH SHALL APPLY TO THE 2 SECRETARY FOR APPROVAL OF A PILOT PROJECT UNDER WHICH UP TO A 3 SPECIFIED MAXIMUM NUMBER OF INDIVIDUALS WHO ARE WORKERS WITH A 4 POTENTIALLY SEVERE DISABILITY ARE PROVIDED MEDICAL ASSISTANCE 5 EQUAL TO THAT PROVIDED UNDER SECTION 1905(a) OF TITLE XIX OF THE 6 SOCIAL SECURITY ACT, 42 U.S.C. 1396d, TO A PERSON DESCRIBED IN 7 SECTION 1902(a)(10)(A)(ii)(XV) OF TITLE XIX OF THE SOCIAL SECUR- 8 ITY ACT, 42. U.S.C. 1396a. 9 (8) AS USED IN THIS ACT: 10 (A) "EMPLOYED" MEANS A PERSON WHO IS DOING EITHER OF THE 11 FOLLOWING: 12 (i) EARNING AT LEAST THE APPLICABLE MINIMUM WAGE REQUIREMENT 13 UNDER SECTION 6 OF THE FAIR LABOR STANDARDS ACT OF 1938, 14 CHAPTER 676, 52 STAT. 1062, 29 U.S.C. 206, AND WORKING 40 HOURS 15 PER MONTH OR MORE. 16 (ii) ENGAGED IN A WORK EFFORT THAT MEETS SUBSTANTIAL AND 17 REASONABLE CRITERIA FOR HOURS OF WORK, WAGES, OR OTHER MEASURES, 18 AS DEFINED BY THE FAMILY INDEPENDENCE AGENCY. 19 (B) "EMPLOYED PERSON WITH A MEDICALLY IMPROVED DISABILITY" 20 MEANS A PERSON TO WHOM ALL OF THE FOLLOWING APPLY: 21 (i) THE PERSON IS AT LEAST 16 YEARS OF AGE AND LESS THAN 65 22 YEARS OF AGE. 23 (ii) THE PERSON IS EMPLOYED. 24 (iii) THE PERSON IS NO LONGER ELIGIBLE FOR MEDICAL ASSIST- 25 ANCE UNDER SECTION 106 BECAUSE THE PERSON, DUE TO MEDICAL 26 IMPROVEMENT, IS DETERMINED AT THE TIME OF A REGULARLY SCHEDULED 04119'99 12 1 CONTINUING DISABILITY REVIEW TO NO LONGER BE ELIGIBLE FOR 2 BENEFITS UNDER SECTIONS 106 AND 107. 3 (iv) THE PERSON CONTINUES TO HAVE A SEVERE MEDICALLY DETER- 4 MINABLE IMPAIRMENT AS DETERMINED UNDER REGULATIONS OF THE 5 SECRETARY. 6 (C) "PERSONAL ASSISTANCE SERVICES" MEANS A RANGE OF SERV- 7 ICES, PROVIDED BY 1 OR MORE PERSONS, DESIGNED TO ASSIST A PERSON 8 WITH A DISABILITY IN PERFORMING DAILY ACTIVITIES ON OR OFF THE 9 JOB THAT THE PERSON WOULD TYPICALLY PERFORM IF HE OR SHE DID NOT 10 HAVE A DISABILITY. PERSONAL ASSISTANCE SERVICES SHALL BE 11 DESIGNED TO INCREASE THE PERSON'S CONTROL IN LIFE AND ABILITY TO 12 PERFORM EVERYDAY ACTIVITIES ON OR OFF THE JOB. 13 (D) "SECRETARY" MEANS THE SECRETARY OF THE DEPARTMENT OF 14 HEALTH AND HUMAN SERVICES. 15 (E) "TITLE II" MEANS TITLE II OF THE SOCIAL SECURITY ACT, 16 CHAPTER 531, 49 STAT. 620, 42 U.S.C. 401 TO 405, 406 TO 418, 420 17 TO 423, 424a TO 426-1, AND 427 TO 433. 18 (F) "TITLE XVI" MEANS TITLE XVI OF THE SOCIAL SECURITY ACT, 19 CHAPTER 531, 49 STAT. 620, 42 U.S.C. 1381 TO 1382j AND 1383 TO 20 1383f. 21 (G) "WORKER WITH A POTENTIALLY SEVERE DISABILITY" MEANS AN 22 INDIVIDUAL WHO MEETS ALL OF THE FOLLOWING CRITERIA: 23 (i) THE PERSON IS AT LEAST 16 YEARS OF AGE AND LESS THAN 65 24 YEARS OF AGE. 25 (ii) THE PERSON HAS A SPECIFIC PHYSICAL OR MENTAL IMPAIRMENT 26 THAT, AS DEFINED BY THE DEPARTMENT OF COMMUNITY HEALTH, IS 27 REASONABLY EXPECTED, BUT FOR THE RECEIPT OF ITEMS AND SERVICES 04119'99 13 1 DESCRIBED IN SECTION 1905(a) OF TITLE XIX OF THE SOCIAL SECURITY 2 ACT TO BECOME BLIND OR DISABLED AS DEFINED UNDER SECTION 1614(a) 3 OF TITLE XVI. 4 (iii) THE PERSON IS EMPLOYED. 04119'99 Final page. 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