TITLE 405 OFFICE OF THE SECRETARY OF FAMILY AND SOCIAL SERVICES

Notice of Intent to Adopt a Rule

LSA Document #08-325

Under IC 4-22-2-23, the Office of the Secretary of Family and Social Services intends to adopt a rule concerning the following:

OVERVIEW: Amends 405 IAC 2 to conform to the Deficit Reduction Act of 2005, Pub. L. No. 109-171, and update eligibility standards with regard to assets, income, and resources. Amends 405 IAC 2-1-2 to require applicants for long-term care services to disclose the interest of the applicant or the applicant's spouse in an annuity and make state a remainder beneficiary of such annuity under certain circumstances. Amends 405 IAC 2-3-1.1 to define home equity, change look back date and penalty period requirements, define personal services contracts, penalize certain transactions involving promissory notes, loans, and mortgages, and life estates, and define and describe treatment of fractional transfers. Amends 405 IAC 2-3-1.1 and 405 IAC 2-3-22 to recognize undue hardship standards listed in 405 IAC 2-3-24. Amends 405 IAC 2-3-1.2 to define annuities purchased on or after February 8, 2006, the treatment of annuities in the eligibility determination, and the conditions under which purchase of such annuities will be considered transfers for less than adequate consideration. Amends 405 IAC 2-3-2 to describe life care contracts requirements and eligibility requirements for individuals possessing life care contracts. Amends 405 IAC 2-3-3 to require all income of an institutionalized spouse be allocated to community spouse before the allocation of any resources. Amends 405 IAC 2-3-15 to disallow long-term care benefits to individuals with home equity greater than $500,000. Amends 405 IAC 2-3-22 to disallow certain claims of debt for personal services from a special needs trust. Adds 405 IAC 2-3-24 to set forth standards for notice of an undue hardship exception, the application for an undue hardship exception, and the appeals rights for denial of an undue hardship exception. Amends 405 IAC 2-8-2 to clarify that the undue hardship waiver under Rule 8 provisions do not apply to Medicaid applicants affected by transfer of property and trust availability rules. Comments or questions should be submitted in writing and directed to the Small Business Regulatory Coordinator for this rule. Statutory authority: IC 12-8-1-9; IC 12-8-6-5; IC 12-13-5-3; IC 12-13-7-3; IC 12-15-1-10; IC 12-15-1-15; IC 12-15-9-6; IC 12-15-21-2.

For purposes of IC 4-22-2-28.1, the Small Business Regulatory Coordinator for this rule is:

Scott Linneweber

Office of the Secretary of Family and Social Services

Indiana Government Center-South

402 West Washington Street, Room W451

Indianapolis, IN 46204

(317) 233-0024

scott.linneweber@fssa.in.gov

DIN: 20080430-IR-405080325NIA

Composed: Apr 25,2024 8:52:23AM EDT

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