SB-0564, As Passed Senate, September 20, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 564

 

 

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.