What's happening
This bill requires the state to notify certain Medicaid applicants about using a trust to become eligible despite excess income.
Why it matters
Empowers Medicaid applicants and recipients—especially those with disabilities—by ensuring they are explicitly informed (in plain language) about "income trusts" (often called pooled trusts or Medicaid qualifying trusts), which can help them qualify for benefits even if their income is above the standard eligibility limit.
Addresses a common barrier: Many applicants who are just over income limits are often unaware of these trusts, so this notice could prevent unnecessary denials, coverage gaps, or financial hardship for vulnerable populations.
Mandates that the notice not only describes the existence of such trusts, but also provides practical, actionable information about how to enroll and how to request a reassessment ("rebudgeting") of their Medicaid eligibility—potentially streamlining access to needed care and services.
Does not alter Medicaid eligibility criteria themselves, but increases transparency and access by ensuring applicants understand their options, which could reduce administrative burdens from appeals and repeated applications.
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Who cares
Headline styles
Notify About Medicaid Eligibility
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 62
History
- Substituted by A5175A
- Advanced to third reading
- 2nd report cal.
- 1st report cal.715
- Print number 1241a
- Amend and recommit to health
- Referred to health
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Notify About Medicaid Eligibility
Signed by Governor · Sponsor Richard Gottfried
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1241--A
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sens. ORTT, CARLUCCI, GALLIVAN, HAMILTON, RANZENHOFER, ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Health -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the social services law, in relation to notice of determination of eligibility for medical assistance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (f) of subdivision 5 of section 366 of the social services law, as relettered by section 26-a of part C of chapter 109 of the laws of 2006, is relettered paragraph (g) and a new paragraph (f) is added to read as follows:
(f) The department shall provide written notice under this paragraph to an applicant for or recipient of medical assistance who is or reasonably appears to be eligible for medical assistance under subparagraph two of paragraph (c) of subdivision one of this section, except for having income exceeding applicable income levels. The notice shall explain, in plain language, the rules for depositing income in a trust that may enable an applicant or recipient who is disabled to become eligible for medical assistance under clause (iii) of subparagraph two of paragraph (b) of subdivision two of this section. The notice shall be included with the eligibility notice provided to such applicants and recipients. The notice shall include information on how to enroll in such a trust and how to request that the local social services district rebudget medical assistance based on participation in such a trust. This paragraph shall not be construed to change any criterion for eligibility for medical assistance.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04837-07-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the social services law, in relation to notice of determination of eligibility for medical assistance
Purpose or general idea of bill
This legislation would require the Department of Health to include information with the eligibility notice to individuals who qualify for the excess income program of the option to participate in a qualifying trust as a means of qualifying for medical assistance.
Summary of provisions
Section 1 amends paragraph (f) of subdivision 5 of section 366 of the social services law. This amendment would require the department of health to provide written notice to individuals eligible for the excess income program of the option to participate in a qualifying trust as a means for qualifying for medical assistance. The notice shall be included with the eligibility notice provided to the applicant. Further, this notice shall include information on how to participate in a trust. Section 2 is the effective date.
Justification
This legislation's goal is simply to make more people aware of the trust option, as it would help more individuals with disabilities stay in their communities by requiring information regarding individual and pooled special needs trusts to be included in eligibility notices. Including the trust option would help ensure that more individuals with disabilities can live in the most integrated setting appropriate to their needs. The other two methods allowing individuals with disabilities with excess income to qualify for Medicaid do not benefit the consumer because the consumer cannot use the money at all. They must either give the excess income back to their Local Department of Social Services or incur enough medical expenses to qualify for Medicaid. The trust option is beneficial for consumers because it helps them maximize their resources and remain in a community setting. A trust allows the individual to receive their public benefits while maintaining a supplemental fund to cover costs such as living expenses, attorney fees, additional non covered medical care, personal expenses etc. Under Medicaid, any monthly income in excess has to be spent down on medical care or home care before Medicaid will provide services. This often leaves the individual without sufficient income to pay normal living expenses. Money that is deposited in a trust is used to pay these expenses.
Prior legislative history
New Bill
Fiscal implications for state and local governments
None
Effective date
This act shall take effect on the one hundred eightieth day.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.