WILLIAM DONALD SCHAEFER, Governor                           S.B. 454

(2)       IN ADDITION TO THE REQUIREMENTS FOR THE COURT-APPROVED
TRUST DESCRIBED UNDER PARAGRAPH (1) OF THIS SUBSECTION, EXCEPT FOR THE
AMOUNT REASONABLY NECESSARY TO MAINTAIN THE EXISTENCE OF THE TRUST
AND REQUIRED TO BE RETAINED IN THE TRUST TO COMPLY WITH FEDERAL
REQUIREMENTS, THE ENTIRE CORPUS OF THE TRUST, OR AS MUCH OF THE CORPUS
AS CAN BE DISTRIBUTED EACH MONTH WITHOUT VIOLATING FEDERAL
REQUIREMENTS FOR FEDERAL FINANCIAL PARTICIPATION, SHALL BE DISTRIBUTED
EACH MONTH FOR EXPENSES RELATED TO THE BENEFICIARY'S NURSING FACILITY
CARE THAT ARE APPROVED UNDER THE PROGRAM.

(3)       DEDUCTIONS MAY BE DISTRIBUTED FROM THE TRUST TO THE SAME
EXTENT DEDUCTIONS FROM THE INCOME OF A NURSING FACILITY RESIDENT WHO
IS NOT A TRUST BENEFICIARY ARE ALLOWED UNDER THE PROGRAM. THE
DEDUCTIONS SHALL INCLUDE THE FOLLOWING:

(I)       A MONTHLY PERSONAL NEEDS ALLOWANCE AS DETERMINED
BY THE DEPARTMENT BY REGULATION;

(II)     PAYMENTS TO THE BENEFICIARY'S COMMUNITY SPOUSE OR
DEPENDENT FAMILY MEMBERS AS PROVIDED AND IN ACCORDANCE WITH TITLE
XIX OF THE FEDERAL SOCIAL SECURITY ACT, 42 U.S.C. § 1396R-5, AS AMENDED, AND
APPLICABLE FEDERAL AND STATE REGULATIONS;

(III)    SPECIFIED HEALTH INSURANCE COSTS AND SPECIAL MEDICAL
SERVICES PROVIDED UNDER TITLE XIX OF THE FEDERAL SOCIAL SECURITY ACT, 42
U.S.C. § 1396A(R), AS AMENDED; AND

(IV)    ANY OTHER DEDUCTION ALLOWED BY APPLICABLE FEDERAL
OR STATE REGULATIONS.

(4)       FOR PURPOSES OF THIS SUBSECTION, "MEDICAID QUALIFYING
TRUST'' HAS THE SAME MEANING AS STATED IN TITLE XIX OF THE FEDERAL SOCIAL
SECURITY ACT, 42 U.S.C. § 1396A(K).

(E)      THE DEPARTMENT SHALL:

(1)      ADOPT REGULATIONS THAT ARE NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION AND TO COMPLY WITH FEDERAL LAW; AND

(2)      AMEND THE STATE MEDICAL ASSISTANCE PLAN IN A MANNER THAT
IS CONSISTENT WITH THE PROVISIONS OF THIS SECTION.

(F)      THE PROVISIONS OF THIS SECTION MAY NOT APPLY IF FEDERAL FUNDS
ARE NOT AVAILABLE FOR INDIVIDUALS WHO WOULD QUALIFY FOR MEDICAL
ASSISTANCE AS A RESULT OF A COURT-APPROVED TRUST THAT MEETS THE
CRITERIA DESCRIBED IN THIS SECTION.

SECTION 2. AND BE IT FURTHER ENACTED, That the provisions of this Act
shall apply to any court-approved trust established for or a court-approved transfer of
property income on or after October 1, 1993 made by or for a protected individual who is
applying for or who is receiving medical assistance for nursing facility care in accordance
with the provisions of Title 15, Subtitle 1 of the Health - General Article. A

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