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House approves amendments strengthening Medicaid estate and third-party recovery
Summary
Lawmakers approved amendments to the Medical Benefits Recovery Act to align state recovery with federal rules, clarify definitions and expand recovery methods; a floor amendment to delete a contested section was adopted and the bill passed the House 64-0.
Representative Lockhart moved Amendment Number 3 to Senate Bill 30 and explained it removes a contested section from the bill so the existing statute remains in effect while stakeholders discuss the issue over the summer. Lockhart described the bill as aligning the state definition of "state" with federal law, adding cross-referenced definitions for annuity and trust, recognizing electronic claims records, clarifying the state's ability to bring action against third parties and recipients, and creating notice duties for trustees in certain estates.
Lockhart said the recovery program returns funds directly to Medicaid; he told the House that "in FY 'three, there was $18,700,000 collected and returned to the Medicaid program," attributing that figure to the state's recovery activity. The House adopted Amendment Number 3 and, on final reading of SB30 as amended, the bill passed the House with a recorded tally of 64 yes and 0 no. The bill will be referred to the Senate for further consideration.
The floor discussion emphasized statutory consistency with federal Medicaid rules and administrative clarifications intended to improve recoveries without changing current beneficiaries' statutory protections in the deleted section.
