WILLIAM DONALD SCHAEFER, Governor                           S.B. 454

(2) THIS SECTION SHALL APPLY TO ANY COURT-APPROVED TRUST
THAT IS FUNDED WITH PROPERTY OWNED BY INCOME OF THE BENEFICIARY AT THE
TIME THE TRUST IS CREATED, BUT DOES NOT APPLY TO ANY TRUST THAT IS
ESTABLISHED AND DIRECTLY FUNDED BY A DEFENDANT OR INSURANCE COMPANY
IN SETTLEMENT OF AN ACTION OR CLAIM FOR PERSONAL INJURY BROUGHT BY OR
ON BEHALF OF THE TRUST BENEFICIARY.

(D)     EXCEPT AS OTHERWISE PERMITTED BY TITLE XIX OF THE FEDERAL
SOCIAL SECURITY ACT, 42 U.S.C. § 1396P, AS AMENDED, A COURT MAY NOT
AUTHORIZE, DIRECT, OR RATIFY THE TRANSFER OF ANY PROPERTY OWNED BY
INCOME OF A PROTECTED INDIVIDUAL IF THE TRANSFER EITHER HAS THE EFFECT
OF QUALIFYING OR PURPORTS TO QUALIFY THE PROTECTED INDIVIDUAL FOR
MEDICAL ASSISTANCE FOR NURSING FACILITY CARE, UNLESS THE PROPERTY
INCOME IS TRANSFERRED INTO A TRUST ESTABLISHED IN ACCORDANCE WITH §
15-109.1 OF THE HEALTH - GENERAL ARTICLE.

(E)      THE PROVISIONS OF THIS SECTION DO NOT APPLY IF FEDERAL FUNDS
ARE NOT AVAILABLE FOR INDIVIDUALS WHO WOULD QUALIFY FOR MEDICAL
ASSISTANCE FOR NURSING FACILITY CARE AS A RESULT OF A COURT-APPROVED
TRUST THAT MEETS THE CRITERIA SET FORTH IN § 15-109.1 OF THE HEALTH -
GENERAL ARTICLE.

Article - Health - General

15-109.1.

(A) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(1)      THE STATE MAKES SIGNIFICANT EXPENDITURES FOR NURSING
HOME CARE UNDER THE MARYLAND MEDICAL ASSISTANCE PROGRAM;

(2)      A LARGE NUMBER OF INDIVIDUALS DO NOT HAVE ENOUGH INCOME
TO AFFORD NURSING HOME CARE, BUT HAVE TOO MUCH INCOME TO QUALIFY FOR
STATE MEDICAL ASSISTANCE, A SITUATION POPULARLY REFERRED TO AS THE
"UTAH GAP";

(3)      SOME INDIVIDUALS IN THE UTAH GAP, THROUGH INNOVATIVE
COURT-APPROVED TRUST ARRANGEMENTS, HAVE BECOME QUALIFIED FOR STATE
MEDICAL ASSISTANCE, THEREBY INCREASING STATE MEDICAL ASSISTANCE
EXPENDITURES; AND

(4)      IT IS THEREFORE APPROPRIATE TO ENACT STATE LAWS THAT LIMIT
THESE COURT-APPROVED TRUSTS IN A MANNER THAT IS CONSISTENT WITH TITLE
XIX OF THE FEDERAL SOCIAL SECURITY ACT, 42 U.S.C. § 1396 ET SEQ., AS AMENDED,
AND THAT PROVIDE THAT INDIVIDUALS WHO QUALIFY FOR ASSISTANCE AS A
RESULT OF A CREATION OF THESE TRUSTS SHALL BE TREATED THE SAME AS ANY
OTHER RECIPIENT OF MEDICAL ASSISTANCE FOR NURSING FACILITY CARE.

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