HB 641-FN – AS INTRODUCED
2011 SESSION
01/04
HOUSE BILL 641-FN
AN ACT relative to lien authority for the office of reimbursements within the department of health and human services.
SPONSORS: Rep. Millham, Belk 5; Rep. Cebrowski, Hills 18; Sen. Odell, Dist 8
This bill allows the office of reimbursements, department of health and human services, to file liens to recover moneys owed for services rendered by the New Hampshire hospital, Glencliff home, and certain other institutions.
This bill is a request of the department of health and human services.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0905
01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to lien authority for the office of reimbursements within the department of health and human services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Duties; Office of Reimbursements. Amend RSA 126-A:34 by inserting after subparagraph (f) the following new subparagraph:
(g) Consistent with RSA 126-A:42, II, file a notice of lien with the register of deeds of the county in which the patient or resident of any of the institutions named in RSA 126-A:34 or at a public or private institution owns real property.
2 Estates Chargeable for Support. Amend the introductory paragraph of RSA 126-A:37 to read as follows:
Except as limited in RSA 126-A:39, expenses incurred by anyone in the institutions named in RSA 126-A:34, or, at the direction of the commissioner in any public or private institution, or elsewhere, may be recovered upon the sale of property subject to a lien imposed pursuant to RSA 126-A:42, I-a, or in any action in the name of the state from the estate of the person, or the person's spouse, or mother or father, whose estate is more than sufficient to pay priorities in RSA 554:19. The spouse and the father and mother are declared jointly and severally liable for expenses, unless otherwise ordered by the court, except that recovery of expenses against a mother or father shall be limited:
3 Recovery of Expenses. Amend RSA 126-A:42, I to read as follows:
I. Subject to the provisions of RSA 126-A:43, II, the state is entitled to recover the expense of care, treatment, and maintenance of any patient or resident at any of the institutions named in RSA 126-A:34 or at a public or private institution or otherwise at the direction of the commissioner from the patient or resident, if of sufficient ability to pay, [or] upon the sale of the property subject to a lien imposed as provided in this section, the person's estate, or from persons legally chargeable with such person's support as defined in RSA 126-A:36 or from the estates provided in RSA 126-A:37.
I-a. The department shall file with the register of deeds of the county in which the patient or resident or the spouse of the patient or resident, if any, owns real property, notice of the lien for reimbursement of expenses, as provided in RSA 126-A:37, after providing all owners of the real property known to the department with prior notice and an opportunity for a hearing. Such notice of lien shall contain the names of the patient or resident and that patient's or resident's spouse, if any. All such liens shall continue until released by the department. The register of deeds shall keep a suitable record of such notices of lien without charging any fee therefor and enter on the record an acknowledgment of satisfaction or release upon written request from the department.
4 Recovery of Expenses. Amend RSA 126-A:42, III to read as follows:
III. In an action by the state for recovery of the expenses of a patient or resident at any of the institutions named in RSA 126-A:34 who is discharged from the institution, or is dead, the action shall be brought within 6 years after the person's discharge or death. [An action by the state against the estate of a patient or resident or against an estate legally chargeable for expenses as provided in RSA 126-A:37 may not be brought unless the action is commenced within the time allowed for an action against an administrator by RSA 556:5.] Notwithstanding RSA 556:5 or any other provision of law to the contrary, the administrator of the estate of a patient or resident at any of the institutions named in RSA 126-A:34 or at a public or private institution shall be conclusively presumed to have accepted a claim for reimbursement of expenses as provided in RSA 126-A:37 which is subject to the jurisdiction of the probate court unless, within 12 months from the initial grant of administration, the administrator commences an equitable action in the superior court challenging the validity or amount of the department's claim and lien.
5 Effective Date. This act shall take effect upon its passage.
LBAO
11-0905
Revised 01/27/11
HB 641 FISCAL NOTE
AN ACT relative to lien authority for the office of reimbursements within the department of health and human services.
FISCAL IMPACT:
The Department of Health and Human Services, Judicial Branch, and New Hampshire Association of Counties state this bill will have an indeterminable fiscal impact on state expenditures, and state and county revenue in FY 2011 and each year thereafter. There will be no fiscal impact on county or local expenditures, or local revenue.
METHODOLOGY:
The Department of Health and Human Services states this bill allows the Department, through the Office of Reimbursements, to secure repayment of obligations to the state for care provided by New Hampshire Hospital, the Laconia Developmental Services - Designated Receiving Facility, the Secure Psychiatric Unit, and the Glencliff Home through placement of a lien on property owned by the recipient after notice and opportunity for a hearing. The Department is not able to estimate the number of persons that will be admitted and who also own property or the value of the property owned. The Department is not able to predict the impact on the state general fund but expects this additional recovery tool will increase recoveries and, therefore, decrease the general fund cost of the care provided. If applicable, the federal share of amounts recovered would be returned to the federal program.
The Judicial Branch states that under this bill the administrator of an estate is presumed to have accepted a claim and lien unless the administrator commences an equitable action in the superior court challenging the claim within twelve months of the initial grant of administration. The Branch has no information on how many equitable actions will be brought in the superior court, but does have information on the average cost of processing such an action. Based on the salary and benefit costs of a full-time judge, the average cost of a complex equity case in superior court will be $430.10 in FY 2012 and $432.40 in FY 2012. In addition, the average time for clerical processing of an equity case is 355 minutes. Based on clerical salary and benefit costs for FY 2012 and FY 2013, the average cost of clerical time per complex equity case will be $159.75 in FY 2012 and $163.30 in FY 2013.
The New Hampshire Association of Counties states this bill would exempt certain lien filings by the Department of Health and Human Services from the filing fees charged by the Register of Deeds. The Association assumes the additional exemption would decrease county revenue by a minimal amount because the number of new filings is expected to be small.