1.1                          A bill for an act 
  1.2             relating to health; eliminating the annual fee for the 
  1.3             senior drug program; increasing the asset limit for 
  1.4             eligibility for qualified Medicare beneficiaries; 
  1.5             requiring a study; amending Minnesota Statutes 1998, 
  1.6             sections 256.955, subdivision 7; and 256B.057, 
  1.7             subdivision 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 256.955, 
  1.10  subdivision 7, is amended to read: 
  1.11     Subd. 7.  [COST SHARING.] ~~(a) Enrollees shall pay an annual~~ 
  1.12  ~~premium of $120.~~  
  1.13     ~~(b)~~ Program enrollees must satisfy a $300 annual 
  1.14  deductible, based upon expenditures for prescription drugs, to 
  1.15  be paid as follows: 
  1.16     (1) $25 monthly deductible for persons with a monthly 
  1.17  spenddown; or 
  1.18     (2) $150 biannual deductible for persons with a six-month 
  1.19  spenddown.  
  1.20     Sec. 2.  Minnesota Statutes 1998, section 256B.057, 
  1.21  subdivision 3, is amended to read: 
  1.22     Subd. 3.  [QUALIFIED MEDICARE BENEFICIARIES.] A person who 
  1.23  is entitled to Part A Medicare benefits, whose income is equal 
  1.24  to or less than ~~85~~ 100 percent of the federal poverty 
  1.25  guidelines, and ~~whose assets are no more than twice the asset~~ 
  1.26  ~~limit used to determine eligibility for the supplemental~~ 
  2.1   ~~security income program~~ who individually owns no more than 
  2.2   $10,000 in assets or as a couple or family owns no more than 
  2.3   $20,000 in assets, excluding the assets that are excluded under 
  2.4   section 256B.056, subdivision 3, is eligible for medical 
  2.5   assistance reimbursement of Part A and Part B premiums, Part A 
  2.6   and Part B coinsurance and deductibles, and cost-effective 
  2.7   premiums for enrollment with a health maintenance organization 
  2.8   or a competitive medical plan under section 1876 of the Social 
  2.9   Security Act.  ~~The income limit shall be increased to 90 percent~~ 
  2.10  ~~of the federal poverty guidelines on January 1, 1990; and to 100~~ 
  2.11  ~~percent on January 1, 1991.~~  Reimbursement of the Medicare 
  2.12  coinsurance and deductibles, when added to the amount paid by 
  2.13  Medicare, must not exceed the total rate the provider would have 
  2.14  received for the same service or services if the person were a 
  2.15  medical assistance recipient with Medicare coverage.  Increases 
  2.16  in benefits under Title II of the Social Security Act shall not 
  2.17  be counted as income for purposes of this subdivision until the 
  2.18  first day of the second full month following publication of the 
  2.19  change in the federal poverty guidelines. 
  2.20     Sec. 3.  [MEDICARE SUPPLEMENTAL COVERAGE FOR LOW-INCOME 
  2.21  SENIORS.] 
  2.22     The commissioner of human services, in consultation with 
  2.23  the commissioners of health and commerce, shall study the extent 
  2.24  and type of Medicare supplemental coverage for low-income 
  2.25  seniors.  The commissioner shall also study the qualified 
  2.26  Medicare beneficiaries eligible under Minnesota Statutes, 
  2.27  section 256B.057, subdivision 3, in terms of developing a 
  2.28  comprehensive set of services to supplement Medicare that these 
  2.29  individuals may need to ensure independence and control of their 
  2.30  lives.  The commissioner shall make recommendations on the 
  2.31  cost-effectiveness of expanding the benefits offered to 
  2.32  qualified Medicare beneficiaries including the feasibility of 
  2.33  the state providing health care coverage options to low-income 
  2.34  seniors that would provide a comprehensive set of services and 
  2.35  would build on existing or new Medicare products.  The 
  2.36  commissioner shall report to the legislature on the findings of 
  3.1   the study with any recommendations by January 15, 2000.