SB 76

Relating to the Medicaid estate recovery program, to require that specific notice be provided to Medicaid at the commencement of a probate proceeding and bar payments of claims in the sixth order of preference as well as summary distributions until proof of such notice has been filed and Medicaid has timely responded to the notice; and to provide a uniform mechanism for Medicaid to commence probate proceeding around the state.

Section 1

(a) The personal representative, or person filing to initiate a proceeding in accordance with the Alabama Small Estates Act, Division 10, Article 18, Chapter of Title 43 of the Code of Alabama 1975, shall give notice of their appointment, or the filing of a petition in accordance with Section 43-2-692, to the Alabama Medicaid Agency. The notice shall include all of the following information: (1) The full legal name of the deceased. (2) The date of birth of the deceased. (3) The date of death of the deceased. (4) The social security number of the deceased. (5) The marital status of the deceased at the time of death. (6) The name, address, and phone number of the spouse of the deceased, if applicable. (7) The court in which a probate estate has been opened. (8) The probate case number. (9) The date on which letters testamentary or letters of administration were issued by the probate court. (10) The name, address, and phone number of the person giving notice. (11) The type of probate proceeding. (b) The notice shall be ineffective if the requirements of subsection (a) are not met. (c) The notice shall be mailed to Alabama Medicaid Agency, Attn: Estate Notice Office, P.O. Box 5624 Montgomery, AL 36103-5624, or such other address as the Commissioner may provide by rule. The notice shall be mailed by United States Postal Service Certified Mail with instructions to forward, return receipt requested, with instructions to the delivering postal employee to show to whom delivered, date of delivery, and address where delivered. The return receipt shall be addressed to the probate court in which the estate was filed and shall identify the case number of the case to which the notice pertains. Upon mailing, the personal representative, or person filing to initiate a proceeding in accordance with the Alabama Small Estates Act, shall immediately file with the probate court an affidavit of certified mailing of notice to the Medicaid Agency, along with a copy of the notice sent. The affidavit shall verify that the notice has been mailed by certified mail in accordance with this act. The probate court shall enter the return receipt into the case record. (d) The Medicaid Agency shall respond to the notice by sending one of the following documents to be filed in the probate court: (1) A claim. (2) A waiver of claim. (3) A statement that no amount is due. (e) The Medicaid Agency shall send a response under subsection (d) as soon as practicable, but no later than 30 days after the date of receipt of the notice. The claim is waived if the Medicaid Agency has not delivered its response to the probate court within 30 days of receipt of the notice, so long as the requirements of this section have been met. (f) The Medicaid Agency may create an electronic system for persons to provide notice in accordance with this section. If created, the electronic system shall issue a serialized certificate as proof of notice. The personal representative, or person filing to initiate a proceeding in accordance with the Alabama Small Estates Act, shall file the serialized certificate in the probate court if the electronic system is utilized. If the Medicaid Agency provides such a system, then the personal representative, or person filing to initiate a proceeding in accordance with the Alabama Small Estates Act, may choose to either provide notice through the electronic system or in accordance with subsection (c), but shall not be required to do both. (g) The Medicaid Agency shall not be charged for filing a waiver of claim or statement that no amount is due. The fee for the filing of the agency's claim shall be considered part of the fees and charges of administration and shall be paid back to the agency without the filing of an additional claim. (h) The debts of the sixth order of preference, in accordance with Section 43-2-371, shall not be paid, and no distribution shall be made, until proof of notice, as required by this section, has been filed in the probate court and 30 days have passed since Medicaid received notice. (i) For the purpose of this section, personal representative shall have the same meaning as provided in Section 43-8-1. (j) This section shall only apply to cases initiated on or after the effective date of this act. (k) All notices provided to the Medicaid Agency and all reports, records, databases, or other documents generated by the Medicaid Agency shall be exempt from disclosure pursuant to Section 36-12-40, Code of Alabama 1975.

Section 2

(a) The Medicaid Agency may petition to open the probate estate of a Medicaid recipient by filing a petition to appoint a third party administrator and issue letters of administration. (b) The petition shall contain all of the following information: (1) The date the recipient died. (2) An explanation of why the petition is filed in the proper court in accordance with Section 43-2-40. (3) A listing of the recipient's personal and real property of which the Medicaid Agency is aware. (4) A listing of the recipient's debts of which Medicaid is aware. (5) A listing of the recipient's possible heirs, including contact information, if known, of which the Medicaid Agency is aware. (c) If the Medicaid Agency is not aware of information listed in subsection (b), then the Medicaid Agency shall describe each piece of information that it lacks. (d) If the petition contains the information required in subsection (b), or statements in accordance with subsection (c), the court shall appoint a third party administrator in accordance with Section 43-2-42, Code of Alabama 1975, and require that administrator to procure a bond in accordance with Article 4, Chapter 2, of Title 43 of the Code of Alabama 1975. Once the court is satisfied that an appropriate bond has been procured, the court shall issue letters of administration to the administrator. (e) The administrator shall be compensated in accordance with Section 43-2-848. (f) When appointing an administrator pursuant to this section, the probate court shall not appoint an employee of the Medicaid Agency as an administrator of the estate of a Medicaid recipient. (g) The filing fee for the filing of the agency's petition under this section shall be considered part of the fees and charges of administration and shall be paid back to Medicaid without the filing of an additional claim.

Section 3

(a) In accordance with applicable federal law and regulations, including Title XIX of the federal Social Security Act, the Medicaid Agency may file a claim against the estate of a Medicaid recipient for the amount of any medical assistance payments made on the recipient's behalf. (b) The claim shall be filed pursuant to Article 15, Chapter 2, of Title 43 of the Code of Alabama 1975, unless otherwise provided by law. The claim shall be filed with an affidavit stating the amount the Medicaid Agency spent and the time period in which the amount was spent. The affidavit shall be completed by the Commissioner of Medicaid or a designee. The affidavit shall be competent evidence of the claim and shall be prima facie genuine and authentic when signed by the Commissioner or a designee. (c) This section 3 shall apply both prospectively and retrospectively to all persons who have had, or will have, medical assistance paid on their behalf under the Alabama Medicaid Agency State Plan.

Section 4

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.