State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2564: ALTCS; trusts

PRIME SPONSOR: Representative Engel, LD 10

BILL STATUS: House Engrossed

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteUpdates language in the Arizona Long Term Care System (ALTCS) statutes related to trusts.

History

AHCCCS is the state's Medicaid program that offers health care programs to service Arizona residents. One of AHCCCS' programs is for individuals who require nursing home or in-home care. These services are offered through the Arizona Long Term Care System (ALTCS). The program serves individuals who are 65 or older, blind or have a disability and need ongoing services at a nursing facility level of care.

ALTCS statutes detail provisions on the creation of any trusts including; language that names the administration or state Medicaid agency as the primary beneficiary of the trust, detailed description of how the trust funds will be administered, adverse actions for violations and language to protect the trust for the trust beneficiary. Outlines trust disbursement qualifications, including; reasonable legal and professional expenses, posteligibility share cost and personal needs allowance, medical expenses, maintenance and guardianship payments and expenses for the benefit of the beneficiary. (A.R.S. § 36-2934.01)

The achieving a better life experience (ABLE) act allows certain individuals with disabilities and their families to save funds in a tax advantaged savings and investment account. Anyone can contribute to an ABLE account belonging to a qualified individual with a disability, including friends, family and the individual for qualified disability expenses. (26 United States Code section 529A), (A.R.S. §§ 46-901—46-908)

Provisions

1.       Replaces language in the trust statute by eliminating a reference to the administration or state Medicaid agency and replaces it with a reference to any state medical plan. (Sec. 1)

2.       States that for a qualified trust, the trustee may make a distribution to an ABLE account. (Sec. 1) 

3.       Removes language describing personal care services. (Sec. 1)

4.       Includes a guardian as a financially responsible relative. (Sec. 1)

5.       Makes technical changes. (Sec. 1)

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9.       Fifty-fourth Legislature                       HB 2564

10.   First Regular Session                            Version 3: House Engrossed

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