SB-0564, As Passed Senate, September 20, 2012
July 13, 2011, Introduced by Senator SCHUITMAKER and referred to the Committee on Appropriations.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
by amending section 106a (MCL 400.106a), as added by 2003 PA 32.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 106a. (1) This section shall be known and may be cited as
the "Michigan freedom to work for individuals with disabilities
law".
(2) The department of community health shall establish a
program to provide medical assistance to individuals who have
earned income and who meet all of the following initial eligibility
criteria:
(a) The individual has been found to be disabled under the
federal supplemental security income program or the social security
disability income program, or would be found to be disabled except
for earnings in excess of the substantial gainful activity level as
established by the United States social security administration.
(b) The individual is at least 16 years of age and younger
than 65 years of age.
(c)
The individual has an unearned a
countable income level of
not
more than 100% 250% of the current federal poverty guidelines
for a family of 1.
(d)
The individual is a current medical assistance recipient
under
section 106 or meets income, asset, and eligibility
requirements
for the medical assistance program under section 106
The individual's assets meet the medicare part D extra help low
income subsidy (LIS) and medicare savings program (MSP) asset
limit, as adjusted annually.
(e) The individual is employed on a regular and continuing
basis.
(3) The program is limited to the medical assistance services
made available to recipients under the medical assistance program
administered
under section 105. and does not include personal
assistance
services in the workplace.
(4) Without losing eligibility for medical assistance, an
individual who qualifies for and is enrolled under this program is
permitted to do all of the following:
(a) Accumulate personal savings and assets not to exceed
$75,000.00.
(b) Accumulate unlimited retirement and individual retirement
accounts with income from employment while enrolled in the freedom
to work for individuals with disabilities program. Assets described
in this subdivision shall remain excluded from eligibility
consideration for other medicaid programs for the individual even
if he or she loses eligibility under this section.
(c) Have temporary breaks in employment that do not exceed 24
months if the temporary breaks are the result of an involuntary
layoff or are determined to be medically necessary or for
relocation necessary due to employment in this state.
(d) Work and have income that exceeds the amount permitted
under section 106, but shall not have unearned income that exceeds
100%
250% of the federal poverty guidelines.
(5)
The department of community health shall establish a
premium
that is based on earned income for individuals enrolled in
the
program subject to all of the following provisions:
(a)
The premium shall be based on the enrolled individual's
annualized
earned income above 250% of the current federal poverty
guidelines
for a family of 1.
(b)
Individuals with an earned income of between 250% of the
federal
poverty guidelines for a family of 1 and $75,000.00 shall
pay
a sliding fee scale premium starting at $600.00 annually and
increasing
to 100% of the average medical assistance recipient cost
as
determined by the department of community health for individuals
with
annual income of $75,000.00 or more.
(c)
The premium sliding fee scale shall have no more than 5
tiers.
(5) The department of community health shall establish a
premium that is based on the enrolled individual's earned and
unearned income. An enrolled individual shall pay a sliding fee
scale monthly premium based on an annual review of total gross
income as follows:
(a) No premium for individuals with gross income less than
138% of the federal poverty guidelines for a family of 1.
(b) A premium of 7.5% per month of gross income for
individuals who have total gross income between 138% of the federal
poverty guidelines for a family of 1 and $75,000.00 annual adjusted
gross income.
(c) A premium of 100% of the average freedom to work program
participant cost for an enrolled individual with adjusted gross
income over $75,000.00 annually.
(d) The premium for an enrolled individual shall generally be
assessed on an annual basis based on the annual return required to
be filed under the internal revenue code of 1986 or other evidence
of earned income and shall be payable on a monthly basis. The
premium shall be adjusted during the year when a change in an
enrolled
individual's rate of annual income moves the individual to
a
different premium tier changes.
(6)
An enrolled individual has an affirmative duty to report
earned
income changes that would result in a different premium
within
30 days to the department of community health.
(7)
The department of community health shall report to the
governor
and the legislature within 2 years of the effective date
of
the amendatory act that added this section regarding all of the
following:
(a)
The effectiveness of the program in achieving its
purposes.
(b)
The number of individuals enrolled in the program.
(c)
The costs and benefits of the program.
(d)
The opportunities and projected costs of expanding the
program
to working individuals with disabilities who are not
currently
eligible for the program.
(e)
Additional services that should be covered under the
program
to assist working individuals with disabilities in
obtaining
and maintaining employment.
(6) (8)
If the terms of this section are
inconsistent with
federal regulations governing federal financial participation in
the medical assistance program, the department of community health
may to the extent necessary waive any requirement set forth in
subsections (1) to (5).
(9)
The program established in this section shall be
implemented
on or before January 1, 2004.
(7) (10)
As used in this section:
(a) "Adjusted gross income" means that term as defined in
section 62 of the internal revenue code of 1986.
(b) (a)
"Earned "Countable
income", "earned income", and
"unearned
income" mean those terms as used by the family
independence
agency department in determining eligibility for the
medical assistance program administered under this act.
(c) (b)
"Federal poverty
guidelines" means the poverty
guidelines published annually in the federal register by the United
States department of health and human services under its authority
to revise the poverty line under section 673(2) of subtitle B of
title
VI of the omnibus budget reconciliation act of 1981, Public
Law
97-35, 42 U.S.C. USC 9902.