Bill Text: IL HB5158 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Aid to the Aged, Blind or Disabled Article of the Illinois Public Aid Code. In a provision that requires the Department of Human Services to exclude from consideration, when determining a person's eligibility for aid, a prepaid, guaranteed-price funeral or burial contract, funded by an irrevocable assignment of a person's life insurance policy to a trust, provides that the insurance company must acknowledge the irrevocable assignment of benefits under the insurance policy within 30 business days after the insurance company receives the irrevocable assignment form. In a provision concerning retroactive eligibility under the medical assistance program, provides that an applicant with a life insurance policy may still be able to irrevocably assign funeral goods and services or purchase a pre-paid funeral or burial contract after applying for medical assistance until a final determination of eligibility has been made by the Department of Healthcare and Family Services.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5158 Detail]
Download: Illinois-2019-HB5158-Introduced.html
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1 | AN ACT concerning public aid.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Public Aid Code is amended by | ||||||||||||||||||||||||||
5 | changing Sections 3-1.2 and 5-2.1d as follows:
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6 | (305 ILCS 5/3-1.2) (from Ch. 23, par. 3-1.2)
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7 | Sec. 3-1.2. Need. Income available to the person, when | ||||||||||||||||||||||||||
8 | added to
contributions in money, substance, or services from | ||||||||||||||||||||||||||
9 | other sources,
including contributions from legally | ||||||||||||||||||||||||||
10 | responsible relatives, must be
insufficient to equal the grant | ||||||||||||||||||||||||||
11 | amount established by Department regulation
for such person.
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12 | In determining earned income to be taken into account, | ||||||||||||||||||||||||||
13 | consideration
shall be given to any expenses reasonably | ||||||||||||||||||||||||||
14 | attributable to the earning of
such income. If federal law or | ||||||||||||||||||||||||||
15 | regulations permit or require exemption
of earned or other | ||||||||||||||||||||||||||
16 | income and resources, the Illinois Department shall
provide by | ||||||||||||||||||||||||||
17 | rule and regulation that the amount of income to be
disregarded | ||||||||||||||||||||||||||
18 | be increased (1) to the maximum extent so required and (2)
to | ||||||||||||||||||||||||||
19 | the maximum extent permitted by federal law or regulation in | ||||||||||||||||||||||||||
20 | effect
as of the date this amendatory Act becomes law. The | ||||||||||||||||||||||||||
21 | Illinois Department
may also provide by rule and regulation | ||||||||||||||||||||||||||
22 | that the amount of resources to
be disregarded be increased to | ||||||||||||||||||||||||||
23 | the maximum extent so permitted or required. Subject to federal |
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1 | approval, resources (for example, land, buildings, equipment, | ||||||
2 | supplies, or tools), including farmland property and personal | ||||||
3 | property used in the income-producing operations related to the | ||||||
4 | farmland (for example, equipment and supplies, motor vehicles, | ||||||
5 | or tools), necessary for self-support, up to $6,000 of the | ||||||
6 | person's equity in the income-producing property, provided | ||||||
7 | that the property produces a net annual income of at least 6% | ||||||
8 | of the excluded equity value of the property, are exempt. | ||||||
9 | Equity value in excess of $6,000 shall not be excluded. If the | ||||||
10 | activity produces income that is less than 6% of the exempt | ||||||
11 | equity due to reasons beyond the person's control (for example, | ||||||
12 | the person's illness or crop failure) and there is a reasonable | ||||||
13 | expectation that the property will again produce income equal | ||||||
14 | to or greater than 6% of the equity value (for example, a | ||||||
15 | medical prognosis that the person is expected to respond to | ||||||
16 | treatment or that drought-resistant corn will be planted), the | ||||||
17 | equity value in the property up to $6,000 is exempt. If the | ||||||
18 | person owns more than one piece of property and each produces | ||||||
19 | income, each piece of property shall be looked at to determine | ||||||
20 | whether the 6% rule is met, and then the amounts of the | ||||||
21 | person's equity in all of those properties shall be totaled to | ||||||
22 | determine whether the total equity is $6,000 or less. The total | ||||||
23 | equity value of all properties that is exempt shall be limited | ||||||
24 | to $6,000.
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25 | In determining the resources of an individual or any | ||||||
26 | dependents, the
Department shall exclude from consideration |
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1 | the value of funeral and burial
spaces, funeral and
burial | ||||||
2 | insurance the proceeds of which can only be used to pay the | ||||||
3 | funeral
and burial expenses of the insured and funds | ||||||
4 | specifically set aside for the
funeral and burial arrangements | ||||||
5 | of the individual or his or her dependents,
including prepaid | ||||||
6 | funeral and burial plans, to the same extent that such
items | ||||||
7 | are excluded from consideration under the federal Supplemental
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8 | Security Income program (SSI). | ||||||
9 | Prepaid funeral or burial contracts are exempt to the | ||||||
10 | following extent:
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11 | (1) Funds in a revocable prepaid funeral or burial | ||||||
12 | contract are exempt up to $1,500, except that any portion | ||||||
13 | of a contract that clearly represents the purchase of | ||||||
14 | burial space, as that term is defined for purposes of the | ||||||
15 | Supplemental Security Income program, is exempt regardless | ||||||
16 | of value. | ||||||
17 | (2) Funds in an irrevocable prepaid funeral or burial | ||||||
18 | contract are exempt up to $5,874, except that any portion | ||||||
19 | of a contract that clearly represents the purchase of | ||||||
20 | burial space, as that term is defined for purposes of the | ||||||
21 | Supplemental Security Income program, is exempt regardless | ||||||
22 | of value. This amount shall be adjusted annually for any | ||||||
23 | increase in the Consumer Price Index. The amount exempted | ||||||
24 | shall be limited to the price of the funeral goods and | ||||||
25 | services to be provided upon death. The contract must | ||||||
26 | provide a complete description of the funeral goods and |
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1 | services to be provided and the price thereof. Any amount | ||||||
2 | in the contract not so specified shall be treated as a | ||||||
3 | transfer of assets for less than fair market value. | ||||||
4 | (3) A prepaid, guaranteed-price funeral or burial | ||||||
5 | contract, funded by an irrevocable assignment of a person's | ||||||
6 | life insurance policy to a trust, is exempt. The amount | ||||||
7 | exempted shall be limited to the amount of the insurance | ||||||
8 | benefit designated for the cost of the funeral goods and | ||||||
9 | services to be provided upon the person's death. The | ||||||
10 | contract must provide a complete description of the funeral | ||||||
11 | goods and services to be provided and the price thereof. | ||||||
12 | Any amount in the contract not so specified shall be | ||||||
13 | treated as a transfer of assets for less than fair market | ||||||
14 | value. The trust must include a statement that, upon the | ||||||
15 | death of the person, the State will receive all amounts | ||||||
16 | remaining in the trust, including any remaining payable | ||||||
17 | proceeds under the insurance policy up to an amount equal | ||||||
18 | to the total medical assistance paid on behalf of the | ||||||
19 | person. The trust is responsible for ensuring that the | ||||||
20 | provider of funeral services under the contract receives | ||||||
21 | the proceeds of the policy when it provides the funeral | ||||||
22 | goods and services specified under the contract. An | ||||||
23 | insurance company doing business in Illinois must
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24 | acknowledge the The irrevocable assignment of benefits | ||||||
25 | under ownership of the insurance policy within 30 business | ||||||
26 | days after the date the insurance company receives the |
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1 | irrevocable assignment form must be acknowledged by the | ||||||
2 | insurance company . | ||||||
3 | Notwithstanding any other provision of this Code to the | ||||||
4 | contrary, an irrevocable trust containing the resources of a | ||||||
5 | person who is determined to have a disability shall be | ||||||
6 | considered exempt from consideration. A pooled trust must be | ||||||
7 | established and managed by a non-profit association that pools | ||||||
8 | funds but maintains a separate account for each beneficiary. | ||||||
9 | The trust may be established by the person, a parent, | ||||||
10 | grandparent, legal guardian, or court. It must be established | ||||||
11 | for the sole benefit of the person and language contained in | ||||||
12 | the trust shall stipulate that any amount remaining in the | ||||||
13 | trust (up to the amount expended by the Department on medical | ||||||
14 | assistance) that is not retained by the trust for reasonable | ||||||
15 | administrative costs related to wrapping up the affairs of the | ||||||
16 | subaccount shall be paid to the Department upon the death of | ||||||
17 | the person. After a person reaches age 65, any funding by or on | ||||||
18 | behalf of the person to the trust shall be treated as a | ||||||
19 | transfer of assets for less than fair market value unless the | ||||||
20 | person is a ward of a county public guardian or the State | ||||||
21 | Guardian pursuant to Section 13-5 of the Probate Act of 1975 or | ||||||
22 | Section 30 of the Guardianship and Advocacy Act and lives in | ||||||
23 | the community, or the person is a ward of a county public | ||||||
24 | guardian or the State Guardian pursuant to Section 13-5 of the | ||||||
25 | Probate Act of 1975 or Section 30 of the Guardianship and | ||||||
26 | Advocacy Act and a court has found that any expenditures from |
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1 | the trust will maintain or enhance the person's quality of | ||||||
2 | life. If the trust contains proceeds from a personal injury | ||||||
3 | settlement, any Department charge must be satisfied in order | ||||||
4 | for the transfer to the trust to be treated as a transfer for | ||||||
5 | fair market value. | ||||||
6 | The homestead shall be exempt from consideration except to | ||||||
7 | the extent
that it meets the income and shelter needs of the | ||||||
8 | person. "Homestead"
means the dwelling house and contiguous | ||||||
9 | real estate owned and occupied
by the person, regardless of its | ||||||
10 | value. Subject to federal approval, a person shall not be | ||||||
11 | eligible for long-term care services, however, if the person's | ||||||
12 | equity interest in his or her homestead exceeds the minimum | ||||||
13 | home equity as allowed and increased annually under federal | ||||||
14 | law. Subject to federal approval, on and after the effective | ||||||
15 | date of this amendatory Act of the 97th General Assembly, | ||||||
16 | homestead property transferred to a trust shall no longer be | ||||||
17 | considered homestead property.
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18 | Occasional or irregular gifts in cash, goods or services | ||||||
19 | from persons
who are not legally responsible relatives which | ||||||
20 | are of nominal value or
which do not have significant effect in | ||||||
21 | meeting essential requirements
shall be disregarded. The | ||||||
22 | eligibility of any applicant for or recipient
of public aid | ||||||
23 | under this Article is not affected by the payment of any
grant | ||||||
24 | under the "Senior Citizens and Disabled Persons Property Tax
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25 | Relief Act" or any distributions or items of
income described | ||||||
26 | under subparagraph (X) of paragraph (2) of subsection (a) of
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1 | Section 203 of the Illinois Income Tax Act.
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2 | The Illinois Department may, after appropriate | ||||||
3 | investigation, establish
and implement a consolidated standard | ||||||
4 | to determine need and eligibility
for and amount of benefits | ||||||
5 | under this Article or a uniform cash supplement
to the federal | ||||||
6 | Supplemental Security Income program for all or any part
of the | ||||||
7 | then current recipients under this Article; provided, however, | ||||||
8 | that
the establishment or implementation of such a standard or | ||||||
9 | supplement shall
not result in reductions in benefits under | ||||||
10 | this Article for the then current
recipients of such benefits.
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11 | (Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)
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12 | (305 ILCS 5/5-2.1d) | ||||||
13 | Sec. 5-2.1d. Retroactive eligibility. An applicant for | ||||||
14 | medical assistance may be eligible for up to 3 months prior to | ||||||
15 | the date of application if the person would have been eligible | ||||||
16 | for medical assistance at the time he or she received the | ||||||
17 | services if he or she had applied, regardless of whether the | ||||||
18 | individual is alive when the application for medical assistance | ||||||
19 | is made. In determining financial eligibility for medical | ||||||
20 | assistance for retroactive months, the Department shall | ||||||
21 | consider the amount of income and resources and exemptions | ||||||
22 | available to a person as of the first day of each of the | ||||||
23 | backdated months for which eligibility is sought. An applicant | ||||||
24 | with a life insurance
policy may still be able to irrevocably | ||||||
25 | assign funeral goods and services or
purchase a pre-paid |
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1 | funeral or burial contract as described in Section 3-l.2 after | ||||||
2 | applying for medical assistance until a final determination of
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3 | eligibility has been made by the Department.
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4 | (Source: P.A. 97-689, eff. 6-14-12.)
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