LB 641 — Change provisions relating to medicaid estate recovery

LB641 LB641 2025 LEGISLATURELEGISLATIVE OFBILL NEBRASKA641 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor FIRSTMay SESSION20, LEGISLATIVE2025 BILL 641 FINAL READING   Introduced by Bostar, 29.

Read  firstA timeBILL JanuaryFOR 22,AN 2025ACT Committee:relating to the medical assistance program;

Judiciary A BILL FOR AN ACT relating to the medical assistance program;

Be it enacted by the people of the State of Nebraska, -1- LB641 LB641 2025 Section 1.

Such care -2- LB641 LB641 2025 may be reimbursed or unreimbursed.

and -3- LB641 LB641 2025 (B) Notwithstanding anything to the contrary in subdivision (3) or (4) of section 68-923, assets conveyed or otherwise transferred to a survivor, an heir, an assignee, a beneficiary, or a devisee of the recipient of medical assistance through joint tenancy, tenancy in common, transfer on death deed, survivorship, conveyance of a remainder interest, retention of a life estate or of an estate for a period of time, living trust, or other arrangement by which value or possession is transferred to or realized by the beneficiary of the conveyance or transfer at or as a result of the recipient's death.

Such other -1- LB641 LB641 2025 arrangements include insurance policies or annuities in which the recipient of medical assistance had at the time of death any incidents of ownership of the policy or annuity or the power to designate beneficiaries and any pension rights or completed retirement plans or accounts of the recipient.

(A) Insurance proceeds, any trust account subject to the Burial Pre-Pre-Need Need Sale Act, or any limited lines funeral insurance policy to the extent used to pay for funeral, burial, or cremation expenses of the recipient of medical assistance;

and (D) Any pension rights or completed retirement plans to the extent -4- LB641 LB641 2025 that such rights or plans are exempt from claims for reimbursement of medical assistance under federal law;

Notwithstanding the lack of an order by a court designating the applicant as a person or entity who may receive information protected by applicable privacy laws, the applicant shall have the authority of a personal representative for the limited -5- LB641 LB641 2025 purpose of seeking and obtaining from the department this certification.

(7)(a) Whenever the department has provided medical assistance because of sickness or injury to any person resulting from a third party's wrongful act or negligence and the person has recovered damages from such third party, the department shall have the right to recover the -6- LB641 LB641 2025 medical assistance it paid from any amounts that the person has received as follows:

or -2- LB641 LB641 2025 (ii) In those cases in which the person is not fully compensated by the recovery, the department shall be reimbursed that portion of the recovery that represents the same proportionate reduction of medical expenses paid that the recovery amount bears to full compensation of the person subject to its contributions to attorney's fees and costs as provided in subdivision (b) of this subsection.

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