Improving the lives of older Americans MIPPA Changes Impacting People with
Medicare
FamiliesUSA Health Action Conference January 2010
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LIS & MSP -- Asset eligibility alignment The Qualified Medicare Beneficiary (QMB), Specified
Low-Income Beneficiary (SLMB) and Qualifying Individual (QI) programs will have the same asset (resource) level as full LIS, In 2010, these levels are $6,600 for a single individual and $9,910 for a married couple.
• At least $1,500 (individual)/$3,000 (married couple) must be excluded from counted assets for MSP
Generally states have stricter rules for excluding monies for burial than LIS, usually requiring that the funds be kept in a separate and identifiable account – check with your Medicaid office
• Some states have already raised MSP asset levels above the federal floor, or have eliminated an asset test
Examples: AL, AZ, DC, DE, ME, MS, NY, VT, and CT What could your state do?
Effective January 1, 2010
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LIS & MSP -- Changes to the LIS eligibility criteria
Cash surrender value of life insurance will no longer be counted as an asset for LIS eligibility
• States may choose to continue counting the cash surrender value of life insurance as an asset in determining MSP eligibility
Effective January 1, 2010
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LIS & MSP -- Changes to the LIS eligibility criteria (continued)
In-kind support and maintenance (ISM) will no longer be counted as income for LIS eligibility
• A few states still count ISM in deciding about entitlement for MSPs
• Does your state? If yes, can you get that changed?
Effective January 1, 2010
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LIS & MSP -- Changes to the LIS application
New question added (question 15) regarding the transmittal of data from SSA to state Medicaid agency to start an MSP application
• Your clients should only check the box if they wish to OPT OUT of this process
Effective January 1, 2010
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LIS & MSP -- Estate recovery for MSP States are prohibited from recovering
Medicaid expenditures for Medicare premiums and cost-sharing paid under MSPs from the estates of deceased Medicaid/MSP recipients
Effective January 1, 2010
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LIS & MSP -- Part D Late Enrollment Penalties
People with LIS are excused from paying Part D plan late enrollment penalty premiums
• This provision put into the law current CMS policy
Related notes: • QMB waives any otherwise applicable Medicare
Parts A and B late enrollment penalty premiums
• SLMB and QI waive any Part B late enrollment penalty premiums
Already in effect
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LIS & MSP:Transmission of LIS data from SSA to States
LIS and MSP application provisions:• Social Security Administration will transmit the
information on LIS applications to state Medicaid agencies, starting with LIS applications filed on January 2, 2010
• State Medicaid agencies must treat the data SSA transmits as the start of an MSP application
Effective January 1, 2010• Since it takes SSA around 14 days to process most
LIS applications, states should expect the first data transmissions by the third week in January 2010
• Do you know if your state is getting these data?
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LIS & MSP -- New model MSP application CMS has developed a new model MSP application
• States are encouraged, but not required to use it
• Will be available in 10 languages -- Arabic, Chinese, French, Haitian-Creole, Farsi, Korean, Spanish, Tagalog, Russian, and Vietnamese.
Translated model MSP applications are available online on CMS and SSA web sites
Is your state using this simple, easy-to-complete application, or something more complex?
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LIS & MSP -- Extension of QI The QI program was extended, but only through the end of 2009
Already in effect NOTE: The American Recovery & Reinvestment Act (ARRA) extends QI even further – through December 31, 2010
Health Care Reform extended it further – what now???
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Resources MIPPA & Your Clients, National Center for Benefits
Outreach & Enrollment Webinar, December 2009, http://www.mymedicarecommunity.org/showthread.php?t=4476
CMS’ limited income and resources web page http:///www.cms.hhs.gov/limitedincomeandresources
SSA fact sheet on MIPPA changes – in English http://www.socialsecurity.gov/pubs/10040.html
SSA fact sheet on MIPPA changes – in Spanish http://www.socialsecurity.gov/espanol/10934.html
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Contact
Hilary Sohmer DalinAssociate Director, BenefitsNational Council on Aging
(202)[email protected]
www.MyMedicareCommunity.orgwww.CenterforBenefits.org