Requires the guardian of an incapacitated person to notify the local department of social services of the death of such incapacitated person

BILL NUMBER:S5311

Title of bill

An act to amend the mental hygiene law, in relation to notifying the local department of social services upon the death of an incapacitated person

Summary of provisions

This bill amends Mental Hygiene Law §81.44(c)(1) by adding a requirement that the duly appointed personal representative of a decedent's estate or the personal representative named in the decedent's will or any trust instrument, if known notify the local social services district of the death of the decedent.

Reasons for support

The City proposes legislation that will increase Medicaid reimbursement recoveries by requiring that the assigned guardian of an individual notify the local social service district - in New York City, the Human Resources Administration (HRA) upon the death of the individual.

Presently, there is no system by which HRA is promptly notified upon the death of an individual who, due to incapacitation, has been assigned a guardian. Under current statute, the guardian must notify other entities, such as the court examiner and the public administrator, but not the agency that provides Medicaid services at public expense.

This notification is critically important when an individual has an outstanding Medicaid lien. As a result of delays in these instances, the City is hindered in seeking reimbursement of Medicaid benefits expended on behalf of the individual. Although payment of debts and other fees cannot be quantified for the purpose of this proposal, we know that up to 12% of gross estate assets are lost in fees paid to attorneys and public administrators when an estate is transferred from the guardian before HRA can insert a lien.

HRA's current process in this regard is piecemeal and time-consuming; staff members check the Welfare Maintenance System and Nexis death records, with occasional notification volunteered by the guardian. Since an appointed guardian has the responsibility to administer an incapacitated person's affairs and has an understanding of the person's history and circumstances, he or she should be obligated to notify the local social service district along with the court examiner and the public administrator.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.