SENATE, No. 2099

STATE OF NEW JERSEY

INTRODUCED MAY 22, 1997

By Senator KYRILLOS

An Act concerning liens imposed by the Medicaid program, amending P.L.1979, c.365 and supplementing chapter 22 of Title 3B of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 7 of P.L.1979, c.365 (C.30:4D-7.2) is amended to read as follows:

    7. a. (1) A lien may be filed against and recovery sought from the estate of a deceased recipient for assistance correctly paid or to be paid on his behalf for all services received when he was 65 years of age or older, except as provided in section 1 of P.L.1981, c.217 (C.30:4D-7.2a).

    (2)  In the case of a recipient who became deceased on or after April 1, 1995 for whom a Medicaid payment was made on or after October 1, 1993, a lien may be filed against and recovery sought from the estate of the deceased recipient for assistance correctly paid or to be paid on his behalf for all services received when he was 55 years of age or older, except as provided in section 1 of P.L.1981, c.217 (C.30:4D-7.2a).

    (3)  As used in this section, "estate" includes all real and personal property and other assets included in the recipient's estate as defined in N.J.S.3B:1-1, as well as any other real and personal property and other assets in which the recipient had any legal title or interest at the time of death, to the extent of that interest, including assets conveyed to a survivor, heir or assign of the recipient through joint tenancy, tenancy in common, survivorship, life estate, living trust or other arrangement.

    b.    A lien may be filed by the division against a third party's property, whether real or personal, or against any interest or estate in property, whether vested or contingent.

    Subject to section 6 of P.L.1979, c.365 (C.30:4D-7.1), any third party recovery obtained by the division under this subsection shall not be reduced by any counsel fees, costs, or other expenses, or portions thereof, incurred by the recipient or the recipient's attorney.

    c.    A certificate of debt may be filed by the division against such parties and in such a manner as is specified in subsection (h) of section 17 of P.L.1968, c.413 (C.30:4D-17).

    d.    (1) A lien, claim or encumbrance imposed by this act shall be deemed a preferred claim against the recipient's estate and shall have a priority equivalent to that under subsection d. of N.J.S.3B:22-2.

    (2)  In the case of a recipient who became deceased on or after the effective date of P.L.1995, c.289, a lien, claim or encumbrance imposed pursuant to this section shall be deemed a preferred claim against the recipient's estate and shall have a priority equivalent to that under subsection c. of N.J.S.3B:22-2.

    e. A person representing the interests of an estate in this State shall give notice of the representation to the Bureau of Administrative Control in the Division of Medical Assistance and Health Services in the Department of Human Services. Notice shall include the decedent's full name, social security number, dates of birth and death, the name of a surviving spouse, and whether there is a surviving child who is under the age of 21 or is blind or permanently and totally disabled. Notice shall be postmarked or hand-delivered to the bureau no later than 30 days following the date of death of the decedent. No distribution from the estate may be made until 90 days following the date of receipt of notice of representation by the division. If the division fails to file a claim to share in the proceeds of the estate within 90 days of receipt of the notice of representation, the estate may distribute the proceeds as if the division had no claim against the estate.

(cf: P.L.1995, c.289, s.1)

    2. (New section) A personal representative of an estate in this State, whether the estate is solvent or not, shall give notice of representation to the Bureau of Administrative Control in the Division of Medical Assistance and Health Services in the Department of Human Services. Notice shall include the decedent's full name, social security number, dates of birth and death, the name of a surviving spouse, and whether there is a surviving child who is under the age of 21 or is blind or permanently and totally disabled. Notice shall be postmarked or hand-delivered to the bureau no later than 30 days following the date of death of the decedent. No distribution from the estate may be made until 90 days following the date of receipt of notice of representation by the division. If the division fails to file a claim to share in the proceeds of the estate within 90 days of receipt of the notice of representation, the estate may distribute the proceeds as if the division had no claim against the estate.

    3. This act shall take effect immediately.

STATEMENT

    This bill amends N.J.S.A.30:4D-7.2, which concerns liens imposed by the Medicaid program, by requiring that a person representing the interests of an estate in this State give notice of representation to the Bureau of Administrative Control in the Division of Medical Assistance and Health Services in the Department of Human Services no later than 30 days following the date of death of the decedent. The bill also supplements chapter 22 of Title 3B of the New Jersey Statutes to include this 30-day notification requirement.

    Notice shall include the decedent's full name, social security number, dates of birth and death, the name of a surviving spouse, and whether there is a surviving child who is under the age of 21 or is blind or permanently and totally disabled. In addition, distributions from the estate may not be made until 90 days following the division's date of receipt of notice of representation. If the division fails to file a claim to share in the proceeds of the estate within 90 days of receipt of the notice of representation, the estate may distribute the proceeds as if the division had no claim against the estate.

    The notice requirement of this bill will assist the Division of Medical Assistance and Health Services in imposing liens on estates of decedents who at some point in their lives were recipients of Medicaid benefits. Currently, the State registrar receives notification of deaths in the State, but that information may not be available to the Medicaid program in a timely manner. This bill would provide the division with 30 days notice of the personal representative of the estate and necessary identifying information about the decedent so that prompt and appropriate action to recover Medicaid payments can be taken prior to distribution of the estate proceeds.

Requires personal representatives of estates to notify Medicaid program of deaths.