H.B. NO.



H.D. 1
















     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:



     §   ‑1  Purpose.  The purpose of the long-term care partnership program is to reduce medicaid costs for long-term care by encouraging individuals to purchase private long-term care insurance plans.  This program allows individuals to benefit from a dollar for dollar asset disregard, for the purposes of medicaid spend down requirements, for benefits paid under their qualified long-term care insurance plans.  By providing incentives for individuals to insure against the potentially high costs of long-term care, this program will delay or eliminate dependence on medicaid. 
     §   ‑2  Definitions.  For the purposes of this chapter:

     "Assets" means real and personal property, income, and any other economic resources owned, earned, or attributable to an individual.

     "Certified long-term care insurance partnership policy" means a policy provided by a producer in accordance with chapter 431 and approved by the department that:

(1)  Meets all of the requirements of a qualified long-term care insurance contract as defined in section 7702B(b) of the Internal Revenue Code; and

(2)  Was issued not earlier than the effective date of the state plan amendment.

     "Department" means the department of human services.

     "Medicaid" means the program for medical assistance established under 42 United States Code chapter 7, subchapter XIX, or any successor program.

     "Partnership" means a cooperative agreement between the state medicaid agency and the federal government.

     "State medicaid agency" means the division of the department of human services that is the federally designated single state agency charged with administration and supervision of the state medicaid program.

     "State plan amendment" means the state medicaid plan amendment made to the federal Department of Health and Human Services that provides for the disregard of any assets in an amount equal to the insurance benefit payments that are made to or on the behalf of an individual who is a beneficiary under a certified long-term care insurance policy.

     §   ‑3  Long-term care partnership established.  (a)  The department shall establish a long-term care partnership program that enables an individual who has assets that would otherwise disqualify the individual from receiving medicaid benefits to continue receiving medicaid benefits; provided that the individual purchases and maintains long-term care insurance that is in compliance with this chapter.

     (b)  All long-term care insurance plans authorized under this chapter shall include a provision that specifies that the long-term care insurance plan shall be the primary payer of long-term care costs and that medicaid shall be the secondary payer.

     §    ‑4  Eligibility for long-term care benefits under medicaid; assets not considered.  Notwithstanding any other law to the contrary, an individual who purchases a certified long-term care insurance partnership policy and has assets above the eligibility levels for receipt of medicaid benefits shall be eligible to receive medicaid benefits and any other long-term care services specified by the department without regard to the individual's assets.

     §   ‑5  Amendments to medicaid rules and state plan.  (a)  The department shall prepare a state plan amendment to seek appropriate amendments to its medicaid rules and state plan to allow protection of assets pursuant to section    ‑4.  The protection shall be provided to the extent approved by the federal Centers for Medicare and Medicaid Services for any purchaser of a certified long-term care insurance partnership policy and shall last for the life of the purchaser.  The protection shall be provided under the medicaid program.  Any purchaser of a certified long-term care insurance partnership policy shall be guaranteed coverage under the medicaid program if the individual meets all other applicable eligibility requirements for the receipt of medicaid benefits that are not related to the individual's assets.

     (b)  The department shall seek any federal waivers and approvals necessary to accomplish the purposes of this chapter.

     §   ‑6  Certification of policies or plans.  The department of commerce and consumer affairs shall certify a policy as a certified long-term care insurance partnership policy only if it meets the requirements of chapter 431, 42 United States Code 1396p, and section 7702B(b) of the Internal Revenue Code.

     §   ‑7  Rules.  The department shall adopt rules pursuant to chapter 91 to implement this chapter.

     §   ‑8  Long-term care partnership program outreach.  The department shall establish an outreach program to educate consumers about the need for long-term care, the mechanisms for financing long-term care, the availability of long-term care insurance, and asset protection provided under this chapter.  The department shall coordinate with the executive office on aging to establish the program."

     SECTION 2.  This Act shall take effect on July 1, 2050.



Report Title:

Long-Term Care Partnership Program



Implements the long-term care partnership program, allowing individuals to qualify for medicaid coverage for continued long-term care prior to exhausting their assets.  Effective July 1, 2050.  (HB1689 HD1)




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.