S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4064--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 8, 2009
                               ___________

Introduced  by  Sens. GOLDEN, DIAZ, LAVALLE, RANZENHOFER, HASSELL-THOMP-
  SON, ONORATO, DeFRANCISCO, PADAVAN, BONACIC, MAZIARZ, MORAHAN, VOLKER,
  FLANAGAN -- read twice and ordered printed, and  when  printed  to  be
  committed  to  the  Committee on Aging -- reported favorably from said
  committee and  committed  to  the  Committee  on  Codes  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  elder law and the insurance law, in relation to
  establishing the New York state compact for long term care

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 2 of the elder law is amended by adding a new title
4 to read as follows:
                                 TITLE 4
                       COMPACT FOR LONG TERM CARE
SECTION 260.   SHORT TITLE.
        261.   DEFINITIONS.
        262.   COMPACT FOR LONG TERM CARE CREATED; PURPOSES.
        263.   REQUIREMENT FOR CONSULTATION.
        264.   IMPLEMENTATION.
        265.   SELECTION OF PROGRAM MANAGEMENT ENTITY.
        266.   PARTICIPATION AND PLEDGE.
        267.   BENEFITS OF PARTICIPATION.
        268.   PROTECTED INCOME.
        269.   IMPOSITION OF LIEN IN CERTAIN CASES.
        270.   PROHIBITED ACTS.
        271.   FRAUDULENT PRACTICES.
        271-A. PAYMENTS AND DEFAULTS.
        272.   APPEALS.
        273.   TREATMENT OF ASSETS.
        274.   SPECIAL PROVISIONS REGARDING COUPLES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08724-04-9
              

S. 4064--A                          2

        275.   ADVISORY COMMITTEE.
        276.   REQUIREMENT FOR CONFIDENTIALITY.
        277.   EDUCATION AND INFORMATION.
  S  260. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"NEW YORK STATE COMPACT FOR LONG TERM CARE".
  S 261. DEFINITIONS. AS USED IN THIS TITLE:
  1. "ASSESSMENT" MEANS AN ASSESSMENT TO DETERMINE WHETHER AN INDIVIDUAL
IS A CHRONICALLY ILL INDIVIDUAL WHO QUALIFIES AS A PARTICIPANT OR  AS  A
BENEFICIARY  IN  THE COMPACT, AND TO PROVIDE INFORMATION FOR THE PLAN OF
CARE REQUIRED  HEREUNDER  FOR  SUCH  ENROLLEES.  AN  ASSESSMENT  MAY  BE
PERFORMED  ONLY  BY  A  LICENSED  HEALTH CARE PRACTITIONER CONTRACTED TO
PERFORM SUCH ASSESSMENTS WITH  AN  INSURER,  THE  COMMISSIONER,  OR  THE
PROGRAM  MANAGEMENT ENTITY.   THE ASSESSMENT SHALL BE PERFORMED ANNUALLY
OR WHENEVER A CHANGE IN THE CONDITION OF THE BENEFICIARY OR  PARTICIPANT
WARRANTS  AN UPDATE TO THE PLAN OF CARE. THE COST OF AN ASSESSMENT SHALL
BE PAID BY AN INDIVIDUAL SEEKING TO ENROLL IN THE COMPACT.
  2. "ADVISORY  COMMITTEE"  MEANS  THE  ADVISORY  COMMITTEE  ESTABLISHED
PURSUANT TO THIS TITLE.
  3. "COMMISSIONER" MEANS THE COMMISSIONER OF HEALTH.
  4.  "COMPACT"  MEANS THE COMPACT FOR LONG TERM CARE PROGRAM AUTHORIZED
BY THIS TITLE.
  5. "COMPACT BENEFICIARY" OR "BENEFICIARY" MEANS A PARTICIPANT  WHO  BY
PAYING  HIS  OR  HER PLEDGE AMOUNT AND MEETING OTHER REQUIREMENTS ESTAB-
LISHED BY THIS TITLE HAS BECOME ELIGIBLE FOR THE COMPACT SUBSIDY.
  6. "COMPACT PARTICIPANT" OR "PARTICIPANT" MEANS AN INDIVIDUAL WHO: (A)
HAS APPLIED FOR MEMBERSHIP IN THE  COMPACT;  (B)  IS  A  STATE  RESIDENT
RESIDING  IN  THIS  STATE AT THE TIME OF SUCH APPLICATION AND HAS BEEN A
STATE RESIDENT FOR AT LEAST TWO YEARS PRIOR TO THE DATE OF  APPLICATION;
(C) HAS BEEN DETERMINED BY AN ASSESSMENT TO BE A CHRONICALLY ILL PERSON,
AND  A  PLAN  OF  CARE  HAS  BEEN DEVELOPED FOR SUCH PERSON; AND (D) HAS
AGREED TO PAY A PLEDGE AMOUNT AS PROVIDED IN THIS TITLE.  A  PARTICIPANT
SHALL BE DEEMED ENROLLED IN THE COMPACT.
  7.  "COMPACT RATE" MEANS THE RATE THAT A PROVIDER MAY CHARGE A COMPACT
BENEFICIARY FOR A SERVICE PROVIDED PURSUANT TO THE COMPACT. THE  COMPACT
RATE SHALL BE COMPUTED BY THE COMMISSIONER AT ONE HUNDRED TEN PERCENT OF
THE COMPACT SUBSIDY FOR THE SERVICE.
  8.  "COMPACT SUBSIDY" OR "SUBSIDY" MEANS THE SUBSIDY PROVIDED PURSUANT
TO THE COMPACT FOR THE COSTS OF ANY QUALIFIED  LONG  TERM  CARE  SERVICE
RECEIVED  BY  A  COMPACT  BENEFICIARY  PURSUANT TO THE PLAN OF CARE. THE
AMOUNT OF THE SUBSIDY SHALL EQUAL THE MEDICAID RATE ESTABLISHED FOR  THE
SAME  OR  A  SIMILAR  SERVICE  IN  THE  REGION  IN WHICH THE BENEFICIARY
RESIDES. IF THERE IS NO MEDICAID RATE FOR A SERVICE  IN  A  REGION,  THE
COMMISSIONER  SHALL  ESTABLISH  A RATE ON RECOMMENDATION OF THE ADVISORY
COMMITTEE WHICH SHALL BE APPLICABLE IN THE REGION FOR THE  SERVICE.  THE
COMMISSIONER SHALL ADJUST THE METHODOLOGY FOR ESTABLISHING THE AMOUNT OF
THE COMPACT SUBSIDY ONLY ON RECOMMENDATION OF THE ADVISORY COMMITTEE.
  9.  "COUNTABLE ASSET" SHALL HAVE THE SAME MEANING AS THE TERM "ASSETS"
IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (D) OF  SUBDIVISION  FIVE
OF SECTION THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW APPLICABLE
TO  TRANSFERS  MADE  AFTER  AUGUST TENTH, NINETEEN HUNDRED NINETY-THREE,
EXCEPT AS OTHERWISE PROVIDED HEREIN OR BY RULES ESTABLISHED PURSUANT  TO
THIS TITLE.  COUNTABLE ASSET DOES NOT INCLUDE INCOME.
  10.  "COUNTABLE  INCOME" MEANS INCOME REQUIRED TO BE CONSIDERED IN THE
CASE OF A PERSON APPLYING FOR MEDICAID PURSUANT TO SECTION THREE HUNDRED
SIXTY-SIX OF THE SOCIAL SERVICES LAW, EXCEPT AS OTHERWISE PROVIDED HERE-
IN OR BY RULES ESTABLISHED PURSUANT TO THIS TITLE. THE FOLLOWING  HEALTH

S. 4064--A                          3

CARE  EXPENDITURES SHALL BE EXCLUDED FROM COUNTABLE INCOME: EXPENDITURES
FOR MEDICARE  SUPPLEMENTAL  INSURANCE  POLICIES  MEETING  THE  STANDARDS
ESTABLISHED  PURSUANT  TO SECTION THREE THOUSAND TWO HUNDRED EIGHTEEN OF
THE  INSURANCE  LAW,  EXPENDITURES FOR A MEDICARE PRESCRIPTION DRUG PLAN
APPROVED PURSUANT TO PROCEDURES ESTABLISHED BY THE  U.S.  DEPARTMENT  OF
HEALTH  AND  HUMAN  SERVICES, AND PREMIUMS FOR THE PURCHASE OF LONG TERM
CARE INSURANCE.
  11. "DIRECTOR" MEANS THE DIRECTOR OF THE STATE OFFICE FOR THE AGING.
  12. "FEDERAL ACT" MEANS THE HEALTH INSURANCE PORTABILITY AND  ACCOUNT-
ABILITY  ACT  OF  1996  OR  ANY SUCCESSOR THERETO, AND RULES PROMULGATED
THEREUNDER. THE FOLLOWING TERMS SHALL HAVE THE SAME  MEANINGS  AS  UNDER
THE  FEDERAL  ACT: "QUALIFIED LONG TERM CARE SERVICES"; "LICENSED HEALTH
CARE PRACTITIONER";  "ACTIVITIES  OF  DAILY  LIVING";  "CHRONICALLY  ILL
PERSON."    ANY PROVISION OF ANY OTHER LAW TO THE CONTRARY NOTWITHSTAND-
ING, THE DEPARTMENT OF HEALTH SHALL NOT BE AUTHORIZED TO  ISSUE,  ENACT,
PROMULGATE,  OR  ENFORCE ANY REQUIREMENT, RULE, REGULATION OR DEFINITION
THAT IS MORE RESTRICTIVE THAN THE MEANINGS ASCRIBED TO SUCH TERMS PURSU-
ANT TO THE FEDERAL ACT.  IN ADDITION:
  (A) THE FOREGOING TO  THE  CONTRARY  NOTWITHSTANDING  AND  SOLELY  FOR
PURPOSES  OF  DETERMINING  WHETHER  A  PARTICIPANT  OR  A BENEFICIARY IS
SUFFERING FROM "SEVERE COGNITIVE  IMPAIRMENT,"  THE  COMMISSIONER  SHALL
REQUIRE THAT SUCH CONDITION BE CHARACTERIZED BY A DETERIORATION OR IRRE-
VERSIBLE  LOSS IN INTELLECTUAL CAPACITY THAT REQUIRES SUBSTANTIAL SUPER-
VISION TO ASSURE THE SAFETY OF THE PARTICIPANT OR OF OTHERS, AND THAT IT
SHALL BE ESTABLISHED BY CLINICAL EVIDENCE AND  STANDARDIZED  TESTS  THAT
RELIABLY  MEASURE:  SHORT-TERM  OR  LONG-TERM  MEMORY; ORIENTATION AS TO
PEOPLE, PLACE OR TIME; DEDUCTIVE OR ABSTRACT REASONING; AND JUDGMENT  AS
IT RELATES TO SAFETY AWARENESS.  THE MEANS OF DETERMINATION AS TO WHETH-
ER  A  PERSON  HAS SUFFERED SEVERE COGNITIVE IMPAIRMENT SHALL INSOFAR AS
PRACTICAL BE THE SAME AS THOSE USED  PURSUANT  TO  THE  FEDERAL  ACT  TO
DETERMINE  SEVERE  COGNITIVE  IMPAIRMENT.   "SUBSTANTIAL SUPERVISION" AS
USED IN THIS TITLE MEANS CONTINUAL OVERSIGHT THAT MAY INCLUDE CUEING  BY
VERBAL  PROMPTING,  GESTURES  OR OTHER DEMONSTRATIONS BY ANOTHER PERSON,
AND THAT IS NECESSARY TO PROTECT THE PATIENT FROM THREATS TO HIS OR  HER
HEALTH OR SAFETY.
  (B)  "LICENSED  HEALTH CARE PRACTITIONER" SHALL BE LIMITED TO A PHYSI-
CIAN, AS DEFINED IN SECTION 1861(R)(1) OF THE SOCIAL SECURITY ACT  OR  A
REGISTERED PROFESSIONAL NURSE, PROVIDED THAT SUCH PERSON IS NOT A FAMILY
MEMBER  AND  FURTHER  PROVIDED  THAT  SUCH INDIVIDUAL SHALL BE LICENSED,
REGISTERED, OR CERTIFIED TO WORK IN NEW YORK.
  (C) ANY LIMITATIONS IMPOSED BY THE FOREGOING TO THE CONTRARY  NOTWITH-
STANDING, "QUALIFIED LONG TERM CARE SERVICES" SHALL INCLUDE ANY EXPENSES
FOR  LONG TERM MEDICAL CARE AND SERVICES WHICH ARE OR, IN THE CASE OF AN
INDIVIDUAL WHO IS NOT A TAXPAYER, WHICH WOULD BE DEDUCTIBLE FROM FEDERAL
GROSS INCOME FOR SUCH TAXPAYER OR INDIVIDUAL AS LONG TERM CARE  SERVICES
PURSUANT  TO THE INTERNAL REVENUE CODE, AND BOTH MEDICAL AND NON-MEDICAL
SERVICES, INCLUDING HOME MODIFICATION  AND  THE  PROVISION  OF  SERVICES
COORDINATION  REQUIRED  PURSUANT  TO  THE  PLAN  OF  CARE  PREPARED BY A
LICENSED HEALTH CARE PRACTITIONER IN ORDER TO MAINTAIN A PARTICIPANT  OR
BENEFICIARY  IN HIS OR HER OWN HOME, AND SUCH ADDITIONAL SERVICES AS MAY
BE APPROVED BY THE COMMISSIONER  UPON  RECOMMENDATION  OF  THE  ADVISORY
COMMITTEE, SO LONG AS THE COMMISSIONER SHALL BE SATISFIED THAT INCLUSION
OF  SUCH  ADDITIONAL SERVICES DOES NOT PREVENT RECEIPT OF FEDERAL FINAN-
CIAL PARTICIPATION UNDER THE MEDICAL ASSISTANCE  PROGRAM  OR  UNDER  THE
COMPACT.

S. 4064--A                          4

  13. "FULFILLED PLEDGE" MEANS A PLEDGE AMOUNT THAT HAS BEEN FULLY PAID.
ONLY  PAYMENTS  MADE  BY  A  PARTICIPANT,  OR BY ANY PERSON OR ENTITY ON
BEHALF OF SUCH PARTICIPANT SHALL BE COUNTED  AS  ELIGIBLE  PAYMENTS  FOR
FULFILLING  A  PLEDGE.  ELIGIBLE  PAYMENTS  SHALL INCLUDE REASONABLE AND
NECESSARY  PAYMENTS FOR QUALIFIED LONG TERM CARE SERVICES, AND ANY ADDI-
TIONAL EXPENSES FOR SERVICES AS MAY BE APPROVED BY THE COMMISSIONER UPON
RECOMMENDATION OF THE  ADVISORY  COMMITTEE.  SUCH  PAYMENTS  SHALL  ALSO
INCLUDE   PAYMENTS  FOR  QUALIFIED  LONG  TERM  CARE  SERVICES  FOR  THE
THREE-MONTH PERIOD PRIOR TO AN INDIVIDUAL BECOMING A PARTICIPANT. COUNT-
ABLE PAYMENTS MADE FOR A QUALIFIED LONG TERM CARE SERVICE IN  FULFILLING
A  PLEDGE  SHALL  NOT BE GREATER THAN THE AMOUNT USUALLY AND CUSTOMARILY
CHARGED FOR SUCH SERVICE BY A PROVIDER TO A NON-MEDICAID RECIPIENT.
  14. "PLAN OF CARE" MEANS A WRITTEN, INDIVIDUALIZED PLAN FOR  CARE  AND
SUPPORT SERVICES DEVELOPED BY A LICENSED HEALTH CARE PRACTITIONER FOR AN
INDIVIDUAL  SEEKING  TO ENROLL IN THE COMPACT AND AT OTHER SUCH TIMES AS
PROVIDED HEREIN. THE PLAN OF CARE SHALL BE DEVELOPED AS A RESULT  OF  AN
ASSESSMENT AND SHALL INCORPORATE ANY INFORMATION PROVIDED BY AN INDIVID-
UAL'S  PERSONAL  PHYSICIAN OR, AS APPROPRIATE, OTHER PHYSICIANS TREATING
THE INDIVIDUAL. IT SHALL FAIRLY, ACCURATELY, AND  APPROPRIATELY  ADDRESS
THE  INDIVIDUAL'S  LONG  TERM  CARE AND SUPPORT SERVICE NEEDS, AND SHALL
SPECIFY THE TYPE, FREQUENCY, AND DURATION OF ALL  SERVICES  REQUIRED  TO
MEET  THOSE  NEEDS  AND  THE  PROVIDERS  APPROPRIATE  TO  FURNISH  THOSE
SERVICES. A PLAN OF CARE SHALL BE COMPLETED AT THE SAME TIME THE ASSESS-
MENT IS PERFORMED, AND SHALL BE UPDATED ANNUALLY ON  THE  BASIS  OF  THE
ANNUAL ASSESSMENT OR WHENEVER A CHANGE IN THE CONDITION OF THE BENEFICI-
ARY  OR  PARTICIPANT  WARRANTS  AN  UPDATE. THE COST OF THE PLAN OF CARE
SHALL BE PAID BY AN INDIVIDUAL SEEKING TO ENROLL IN THE COMPACT.
  15. "PLEDGE AMOUNT" MEANS THE AMOUNT PLEDGED BY A PARTICIPANT FOR  THE
COST  OF  QUALIFIED  LONG TERM CARE SERVICES. THE PLEDGE AMOUNT SHALL BE
THE LESSER OF: (A) THE "MAXIMUM  PLEDGE  AMOUNT,"  WHICH  SHALL  BE  THE
AMOUNT  EQUAL  TO THIRTY-SIX MONTHS OF PAYMENT FOR NURSING HOME SERVICES
IN THE REGION IN WHICH THE PARTICIPANT RESIDES,  AS  APPLICABLE  AT  THE
TIME OF APPLICATION TO THE COMPACT; OR
  (B) THE "DOLLAR PLEDGE AMOUNT" WHICH SHALL BE AN AMOUNT EQUAL TO FIFTY
PERCENT  OF  A  PARTICIPANT'S COUNTABLE ASSETS. IN THE CASE OF A PARTIC-
IPANT WHOSE COUNTABLE ASSETS ARE LESS THAN FORTY THOUSAND  DOLLARS,  THE
DOLLAR  PLEDGE  AMOUNT  SHALL  BE  LIMITED  TO THE AMOUNT IN EXCESS OF A
DEDUCTIBLE AMOUNT OF TWENTY THOUSAND DOLLARS, AND THE COMMISSIONER SHALL
CALCULATE SUCH DOLLAR  PLEDGE  AMOUNT  BY  SUBTRACTING  SUCH  DEDUCTIBLE
AMOUNT  OF  TWENTY  THOUSAND  DOLLARS  FROM  THE PARTICIPANT'S COUNTABLE
ASSETS AND THE REMAINDER AMOUNT SHALL EQUAL THE  DOLLAR  PLEDGE  AMOUNT;
PROVIDED  THAT THE COMMISSIONER SHALL ANNUALLY INCREASE OR DECREASE SUCH
FORTY THOUSAND DOLLAR ASSET  AMOUNT  AND  SUCH  TWENTY  THOUSAND  DOLLAR
DEDUCTIBLE  AMOUNT  AT  THE  SAME  PERCENTAGE  RATE  AS  THE INCREASE OR
DECREASE IN THE REGIONAL RATE FOR NURSING HOME SERVICES FOR  THE  REGION
IN WHICH THE ELIGIBLE INDIVIDUAL RESIDES.
  16.  "REGION" MEANS THE FOLLOWING REGIONS: LONG ISLAND, NEW YORK CITY,
NORTHERN METROPOLITAN NEW YORK, NORTHEASTERN  NEW  YORK,  UTICA  REGION,
CENTRAL NEW YORK, ROCHESTER REGION AND WESTERN NEW YORK.
  17. "REGIONAL RATE" MEANS THE RATE SET ANNUALLY BY THE COMMISSIONER AT
EQUAL TO THE AVERAGE OF ALL RATES, EXCLUSIVE OF MEDICAID RATES, PAID FOR
THE  SAME  OR  SIMILAR  SERVICES WITHIN A REGION. THE COMMISSIONER SHALL
COMPUTE AND ANNUALLY UPDATE REGIONAL RATES FOR EACH REGION OF THE  STATE
FOR  ANY  YEAR  NOT  LATER  THAN  THE  LAST WEEK OF DECEMBER OF THE YEAR
PRECEDING SUCH YEAR.

S. 4064--A                          5

  S 262. COMPACT FOR LONG TERM CARE CREATED; PURPOSES. THE  COMPACT  FOR
LONG  TERM CARE IS HEREBY CREATED. ITS PURPOSE SHALL BE TO PROVIDE COOR-
DINATED PUBLIC AND PRIVATE COVERAGE FOR THE EXPENSES OF PROVIDING QUALI-
FIED LONG TERM CARE SERVICES TO ELIGIBLE INDIVIDUALS PURSUANT TO A  PLAN
OF CARE, A PURPOSE HEREBY DECLARED TO BE IN EVERY RESPECT AN APPROPRIATE
PUBLIC  PURPOSE  CONDUCTED FOR THE BENEFIT OF THE PEOPLE OF THE STATE OF
NEW YORK.
  S 263. REQUIREMENT FOR CONSULTATION. ANY PROVISION OF ANY OTHER LAW TO
THE CONTRARY NOTWITHSTANDING, AND IN ADDITION TO ANY  OTHER  REQUIREMENT
IMPOSED  BY THIS TITLE, THE COMMISSIONER SHALL CONSULT WITH THE DIRECTOR
AND WITH THE SUPERINTENDENT OF INSURANCE PRIOR TO  TAKING  ANY  MATERIAL
ACTION  CONCERNING  POLICY  OR  PROGRAM MATTERS REQUIRED OR PERMITTED BY
THIS TITLE, PROVIDED HOWEVER THAT THE FAILURE TO  RESPOND  TIMELY  TO  A
REQUEST  FOR  CONSULTATION AND ADVICE SHALL NOT IMPAIR OR INVALIDATE ANY
SUCH ACTION TAKEN BY THE COMMISSIONER.
  S 264. IMPLEMENTATION. ANY PROVISION OF ANY OTHER LAW TO THE  CONTRARY
NOTWITHSTANDING,  THE  COMMISSIONER  IS  HEREBY  AUTHORIZED TO AND SHALL
IMPLEMENT THE COMPACT FOR LONG TERM  CARE  PROGRAM  AUTHORIZED  BY  THIS
TITLE AND SHALL SUBMIT SUCH WAIVER APPLICATIONS AND/OR STATE PLAN AMEND-
MENTS  AS  MAY  BE NECESSARY FOR SUCH IMPLEMENTATION, PROVIDED THAT SUCH
PROGRAM AND THE PROVISIONS OF THIS TITLE SHALL BE  IMPLEMENTED  ONLY  IF
AND  FOR SO LONG AS THE COMMISSIONER SHALL BE SATISFIED THAT THEY DO NOT
PREVENT RECEIPT OF FEDERAL FINANCIAL  PARTICIPATION  UNDER  THE  MEDICAL
ASSISTANCE PROGRAM OR UNDER THE COMPACT. IN APPLYING FOR THE WAIVER, THE
COMMISSIONER  SHALL  CONSULT  WITH  THE  ADVISORY  COMMITTEE  CONCERNING
SUBMISSION OF APPROPRIATE CRITERIA FOR ASSURING THAT A SERVICE IS  PROP-
ERLY PROVIDED AND MEETS APPROPRIATE STANDARDS OF QUALITY AND COST.
  S  265. SELECTION OF PROGRAM MANAGEMENT ENTITY. 1. THE COMMISSIONER IS
HEREBY AUTHORIZED TO AND SHALL CONTRACT WITH A PROGRAM MANAGEMENT ENTITY
TO ADMINISTER THE COMPACT. THE PROCESS FOR SELECTING A  PROGRAM  MANAGE-
MENT  ENTITY  TO  MANAGE THE COMPACT PROGRAM SHALL BE GOVERNED SOLELY BY
THIS TITLE.
  2. INSOFAR AS PERMITTED UNDER ANY FEDERAL WAIVERS OR STATE PLAN AMEND-
MENTS REQUIRED FOR IMPLEMENTATION, THE COMPACT SHALL  BE  MANAGED  BY  A
PROGRAM MANAGEMENT ENTITY CONTRACTED TO AND SELECTED BY THE COMMISSIONER
BY A REQUEST FOR PROPOSALS OR A REQUEST FOR QUALIFICATIONS ISSUED PURSU-
ANT TO THIS TITLE. SUCH ENTITY SHALL BE RESPONSIBLE FOR COORDINATING AND
MANAGING  ALL  ASPECTS  OF  THE  COMPACT  PROGRAM  AND LIAISING WITH THE
DEPARTMENT OF HEALTH, INDIVIDUALS, INSURANCE COMPANIES AND  OTHER  ENTI-
TIES   TO  ASSURE  APPROPRIATE  COLLECTION  AND  VERIFICATION  OF  DATA,
COLLECTION OF PAYMENTS REQUIRED TO BE MADE TO THE STATE PURSUANT TO THIS
TITLE, VERIFICATION OF ASSESSMENTS AND CLAIMS TRACKING, AND OTHER  SIMI-
LAR ADMINISTRATIVE RESPONSIBILITIES. THE PROGRAM MANAGEMENT ENTITY SHALL
NOT  BE AN INSURANCE ENTITY OFFERING AN INSURANCE PLAN UNDER THE COMPACT
OR, UNLESS REQUIRED BY FEDERAL LAW OR REGULATION OR AS  A  CONDITION  OF
FEDERAL  APPROVAL  OF  ANY WAIVERS OR STATE PLAN AMENDMENTS NECESSARY TO
IMPLEMENT THE COMPACT, A STATE AGENCY OR A  COVERED  AUTHORITY  AS  SUCH
TERMS ARE DEFINED IN SECTION TWO-A OF THE STATE FINANCE LAW.
  3. THE COMMISSIONER, AFTER CONSULTATION WITH THE DIRECTOR OF THE DIVI-
SION OF THE BUDGET, SHALL WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE OF
THIS  SECTION, REPORT TO THE GOVERNOR AND THE LEGISLATURE WITH RECOMMEN-
DATIONS FOR THE IMPLEMENTATION OF THE  SELECTION  PROCESS.  SUCH  REPORT
SHALL DETAIL:
  (A) THE CRITERIA TO BE USED IN SELECTING THE ENTITY;
  (B) THE PROCESS TO BE USED IN THE SELECTION, INCLUDING THE ISSUANCE OF
REQUESTS FOR PROPOSALS, REQUESTS FOR QUALIFICATIONS OR OTHER MEANS;

S. 4064--A                          6

  (C)  THE  NAMES OF ANY ENTITIES ENGAGED TO DEVELOP CRITERIA AND ASSIST
IN THE SELECTION;
  (D)  TIMELINESS  FOR  THE  SELECTION  OF  THE  ENTITY  AND ISSUANCE OF
CONTRACTS;
  (E) MARKETING PLANS FOR THE PROGRAM;
  (F) MEANS TO MAKE THE SELECTION PROCESS AS TRANSPARENT AS POSSIBLE;
  (G) MEANS BY WHICH TRADE AND COMPETITIVE SECRETS SHALL BE PROTECTED;
  (H) MEANS BY WHICH INDIVIDUAL IDENTIFYING INFORMATION RELATING TO  ANY
PATIENT  OR CONSUMER ACQUIRED BY THE PROGRAM SHALL BE KEPT CONFIDENTIAL;
AND
  (I) ANY OTHER INFORMATION THE DIRECTOR OF THE DIVISION OF  THE  BUDGET
OR THE COMMISSIONER SHALL DEEM PERTINENT.
  IN  PREPARING  THE  REPORT, THE DIRECTOR OF THE DIVISION OF THE BUDGET
AND THE COMMISSIONER SHALL CONSULT WITH THE ADVISORY COMMITTEE  AND  THE
SUPERINTENDENT  OF INSURANCE, AND SHALL ADDITIONALLY CONVENE AN ADVISORY
GROUP OF INSURERS AUTHORIZED TO WRITE LONG TERM CARE INSURANCE  IN  THIS
STATE  TO  PROVIDE  COMMENTS  ON  THE REPORT, OR IF CONVENING SUCH GROUP
SHALL PROVE IMPRACTICABLE OR INAPPROPRIATE, SHALL SHARE THE REPORT  WITH
SUCH INSURERS AND INCLUDE ANY WRITTEN COMMENTS RECEIVED FROM SUCH INSUR-
ERS AND THE ADVISORY COMMITTEE WHEN THE REPORT IS ISSUED TO THE GOVERNOR
AND THE LEGISLATURE.
  4. AFTER CONSIDERATION OF ANY COMMENTS THEY MAY RECEIVE CONCERNING THE
REPORT,  THE  COMMISSIONER  AND/OR  THE  DIRECTOR OF THE DIVISION OF THE
BUDGET, AS APPROPRIATE, SHALL PROMULGATE RULES AND REGULATIONS GOVERNING
THE SELECTION PROCESS FOR A PROGRAM MANAGEMENT ENTITY.  SUCH  RULES  AND
REGULATIONS  SHALL  REFLECT THE RECOMMENDATIONS IN THE REPORT INSOFAR AS
PRACTICABLE AND ANY RECOMMENDATIONS RECEIVED BY THE COMMISSIONER AND THE
DIRECTOR OF THE DIVISION OF THE BUDGET. THE  PROGRAM  MANAGEMENT  ENTITY
SHALL  BE  SELECTED  THROUGH  ISSUANCE  OF A REQUEST FOR PROPOSALS OR IF
APPROPRIATE AND APPROVED BY THE DIRECTOR OF THE DIVISION OF THE  BUDGET,
BY  ISSUANCE  OF  A  REQUEST  FOR  QUALIFICATIONS,  AND SUCH REQUEST FOR
PROPOSALS OR REQUEST FOR QUALIFICATIONS SHALL INCORPORATE  THE  CRITERIA
AND  OTHER CONDITIONS AGREED UPON AS A RESULT OF THE PROCESS REQUIRED IN
THIS SECTION.
  S 266. PARTICIPATION AND PLEDGE. 1. AN INDIVIDUAL WHO MEETS THE CRITE-
RIA FOR BECOMING A PARTICIPANT SHALL BE ENROLLED IN THE COMPACT PROGRAM.
IN MEETING SUCH CRITERIA, THE INDIVIDUAL SHALL HAVE THE  OPTION  AT  THE
TIME  OF  APPLICATION  TO PLEDGE EITHER THE MAXIMUM PLEDGE AMOUNT OR THE
DOLLAR PLEDGE AMOUNT.
  (A) AN INDIVIDUAL WHO ELECTS TO PLEDGE THE MAXIMUM PLEDGE AMOUNT SHALL
PAY OR HAVE PAID ON HIS OR HER BEHALF BY ANY PERSON OR ENTITY AN  AMOUNT
FOR  THE  PURCHASE OF QUALIFIED LONG TERM CARE SERVICES THAT IS EQUAL TO
THIRTY-SIX MONTHS OF PAYMENT AT  THE  REGIONAL  RATE  FOR  NURSING  HOME
SERVICES  IN  THE REGION IN WHICH THE PARTICIPANT RESIDES AS OF THE DATE
THE INDIVIDUAL APPLIES TO BECOME A PARTICIPANT.
  (B) AN INDIVIDUAL WHO ELECTS TO PLEDGE THE DOLLAR PLEDGE AMOUNT  SHALL
PAY  OR HAVE PAID ON HIS OR HER BEHALF BY ANY PERSON OR ENTITY AN AMOUNT
FOR THE PURCHASE OF QUALIFIED LONG TERM CARE SERVICES THAT IS  EQUAL  TO
FIFTY  PERCENT  OF  A  PARTICIPANT'S COUNTABLE ASSETS.   SUCH INDIVIDUAL
SHALL SUBMIT: (I) A VERIFIED STATEMENT OF COUNTABLE ASSETS UNDER PENALTY
OF PERJURY LISTING ALL COUNTABLE CURRENT ASSETS HELD BY  THE  INDIVIDUAL
AT  THE  TIME  OF APPLICATION AND ANY ASSET TRANSFERS FOR LESS THAN FULL
VALUE DURING THE FIVE YEARS PRECEDING SUCH DATE OF APPLICATION, (II) THE
INDIVIDUAL'S FIVE MOST RECENT YEARS OF  STATE  AND  FEDERAL  INCOME  TAX
RETURNS,  AND  (III)  ADDITIONAL DOCUMENTATION AS THE PROGRAM MANAGEMENT
ENTITY, WITH THE APPROVAL OF THE COMMISSIONER UPON RECOMMENDATION OF THE

S. 4064--A                          7

ADVISORY COMMITTEE, SHALL DEEM  REASONABLE  AND  APPROPRIATE  TO  VERIFY
ASSETS,  THE  VALUES  OF  SUCH  ASSETS,  AND  THE VALIDITY OF THE PLEDGE
AMOUNT.
  (C)  DOCUMENTATION  CONCERNING  THE  PLEDGE AMOUNT, THE RESULTS OF THE
ASSESSMENT AND EVIDENCE OF A FULFILLED PLEDGE SHALL BE SUBMITTED TO  THE
PROGRAM MANAGEMENT ENTITY IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER.
  (D)  THE FOREGOING PROVISIONS OF THIS SECTION TO THE CONTRARY NOTWITH-
STANDING, THE PLEDGE AMOUNT MAY BE ADJUSTED IN THE EVENT THAT  AN  INDI-
VIDUAL  IS  SUBJECT  TO EXTRAORDINARY CIRCUMSTANCES, AS THE COMMISSIONER
SHALL DETERMINE, BUT THE  DESCRIPTION  OR  DEFINITION  OF  EXTRAORDINARY
CIRCUMSTANCES SHALL BE ESTABLISHED ONLY UPON RECOMMENDATION OF THE ADVI-
SORY COMMITTEE.
  2.  A  PARTICIPANT  WHO  FULFILLS  HIS OR HER PLEDGE SHALL BE DEEMED A
BENEFICIARY AND SHALL BE ELIGIBLE FOR THE COMPACT SUBSIDY. A PARTICIPANT
WHO FAILS TO FULFILL HIS OR HER PLEDGE SHALL NOT BE ELIGIBLE TO BECOME A
BENEFICIARY, BUT SHALL NOT SURRENDER ELIGIBILITY TO APPLY  FOR  MEDICAID
OR  ELIGIBILITY  TO  APPLY  FOR  THE COMPACT SUBSIDY IF SUCH PARTICIPANT
SHALL LATER BECOME ELIGIBLE.
  3. NOTWITHSTANDING  ANY  SIMILARITY  IN  ELIGIBILITY  REQUIREMENTS  OR
COMMONALITY  IN  THE  DEFINITIONS  OF  ASSET, INCOME OR OTHER ITEMS, AND
EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, A PARTICIPANT  OR  BENEFICI-
ARY,  AS THE CASE MAY BE, SHALL BE EXEMPT FROM THE RESOURCE TESTS, LIENS
AND OTHER REQUIREMENTS AND IMPOSITIONS THAT WOULD OTHERWISE BE  APPLICA-
BLE TO PERSONS APPLYING FOR OR RECEIVING MEDICAID.
  4.  THE  PURCHASE OF QUALIFIED LONG TERM CARE SERVICES FOR THE PURPOSE
OF FULFILLING THE PLEDGE SHALL BE RESTRICTED TO THE PURCHASE  OF  QUALI-
FIED  LONG  TERM  CARE  SERVICES  IN THE STATE SO LONG AS THE INDIVIDUAL
MEETS THE REQUIREMENTS OF THIS TITLE  WITH  RESPECT  TO  FULFILLING  THE
PLEDGE,  AND  PROVIDED  FURTHER  THAT A BENEFICIARY MAY ONLY RECEIVE THE
COMPACT SUBSIDY FOR SERVICES RECEIVED WITHIN THIS STATE.
  5. COUNTABLE PAYMENTS MADE FOR A QUALIFIED LONG TERM CARE  SERVICE  IN
FULFILLING  A  PLEDGE  SHALL  NOT BE GREATER THAN THE AMOUNT USUALLY AND
CUSTOMARILY CHARGED FOR SUCH SERVICE BY A  PROVIDER  TO  A  NON-MEDICAID
RECIPIENT  AND  SHALL INCLUDE REASONABLE AND NECESSARY EXPENSES PAID FOR
SUCH SERVICES, PROVIDED, HOWEVER THAT THE COMMISSIONER,  ON  RECOMMENDA-
TION OF THE ADVISORY COMMITTEE, MAY ESTABLISH CRITERIA FOR ASSURING THAT
A SERVICE IS PROPERLY PROVIDED AND MEETS APPROPRIATE STANDARDS OF QUALI-
TY  AND  COST.  THE  PROGRAM  MANAGEMENT  ENTITY  SHALL BE AUTHORIZED TO
UTILIZE SUCH CRITERIA IN ESTABLISHING PARAMETERS FOR PROPER  AND  APPRO-
PRIATE  PAYMENT FOR SERVICES AND ASSURANCES OF QUALITY. THE COMMISSIONER
SHALL REQUIRE SUBMISSION TO THE PROGRAM MANAGEMENT  ENTITY  OF  PERIODIC
UPDATES OF PAYMENTS MADE TOWARD FULFILLING THE PLEDGE AND REVIEW OF SUCH
PAYMENTS  BY  THE PROGRAM MANAGEMENT ENTITY FOR ELIGIBILITY. THE PROGRAM
MANAGEMENT ENTITY SHALL ADVISE THE PARTICIPANT OF ANY  INELIGIBILITY  OF
ANY SUCH PAYMENTS.
  6.  THE COMMISSIONER SHALL ESTABLISH A SEAMLESS PROCESS FOR TRANSITION
OF AN INDIVIDUAL FROM PARTICIPANT TO BENEFICIARY  WHEN  SUCH  INDIVIDUAL
HAS  FULFILLED THE REQUIREMENTS ESTABLISHED PURSUANT TO THIS TITLE. SUCH
SEAMLESS PROCESS MAY INCLUDE, FOR EXAMPLE, APPLICATION  TO  RECEIVE  THE
PUBLIC  SUBSIDY  AS  A  BENEFICIARY AT THE SAME TIME THAT THE INDIVIDUAL
ENROLLS AS A PARTICIPANT IN THE COMPACT, SO  THAT  WHEN  THE  PLEDGE  IS
FULFILLED,  THE  INDIVIDUAL  AUTOMATICALLY  TRANSITIONS TO THE STATUS OF
BENEFICIARY ELIGIBLE FOR THE COMPACT SUBSIDY. INSOFAR AS  FEASIBLE,  THE
TRANSITION SHOULD BE MANAGED BY THE PROGRAM MANAGEMENT ENTITY.

S. 4064--A                          8

  S  267.  BENEFITS OF PARTICIPATION.  1. A BENEFICIARY WHO FULFILLS THE
PLEDGE SHALL BE ENTITLED TO PRESERVE HIS OR HER RESOURCES AND  SHALL  BE
ELIGIBLE TO RECEIVE THE COMPACT SUBSIDY.
  2.  A BENEFICIARY SHALL NOT BE REQUIRED TO SUBMIT TO RESOURCE REQUIRE-
MENTS OR LIMITATIONS, OR TO THE RECOVERY OF PAYMENTS MADE BY  THE  STATE
FROM  THE  ESTATES OF SUCH INDIVIDUALS, OR TO THE IMPOSITION OF LIENS ON
THE HOMES OF PERSONS, SUCH AS THOSE WHICH ARE IMPOSED  ON  BENEFICIARIES
OF  THE  MEDICAID PROGRAM PURSUANT TO SECTION THREE HUNDRED SIXTY-SIX OR
SECTION THREE HUNDRED SIXTY-NINE OF  THE  SOCIAL  SERVICES  LAW,  UNLESS
OTHERWISE PROVIDED IN OR PURSUANT TO THIS TITLE.
  3.  A  BENEFICIARY  SHALL  BE ELIGIBLE TO HAVE THE SUBSIDY PAID TO THE
PROVIDER OF SERVICES FOR THE COSTS OF QUALIFIED LONG TERM CARE  SERVICES
FROM ANY WILLING PROVIDER SELECTED BY SUCH BENEFICIARY.
  4. A BENEFICIARY SHALL BE ELIGIBLE TO RECEIVE QUALIFIED LONG TERM CARE
SERVICES AT A RATE CHARGED BY A PROVIDER OF SERVICES WHICH IS NO GREATER
THAN THE COMPACT RATE.
  5.  A BENEFICIARY SHALL NOT BE RESPONSIBLE FOR PAYMENT FOR SUCH QUALI-
FIED LONG TERM CARE SERVICES OF ANY AMOUNT GREATER THAN  THE  DIFFERENCE
BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY.
  6.  A BENEFICIARY SHALL ANNUALLY REMIT A PARTICIPATION FEE TO MAINTAIN
ELIGIBILITY IN THE COMPACT, EQUAL TO TWENTY-FIVE PERCENT OF SUCH BENEFI-
CIARY'S COUNTABLE INCOME.  SUCH FEE SHALL BE REMITTED TO THE COMMISSION-
ER OR, IF SO DIRECTED BY THE COMMISSIONER,  TO  THE  PROGRAM  MANAGEMENT
ENTITY  FOR  TRANSMITTAL  TO  THE  COMMISSIONER. THE COMMISSIONER, AFTER
CONSULTATION WITH THE ADVISORY COMMITTEE, SHALL MAKE PROVISION TO  ALLOW
A  BENEFICIARY  TO  MAKE  PAYMENTS  ON  A MONTHLY OR OTHER BASIS, AT THE
OPTION OF THE BENEFICIARY.
  7. A BENEFICIARY SHALL RETAIN A PROTECTED AMOUNT OF INCOME DURING  THE
PERIOD IN WHICH THE BENEFICIARY IS RECEIVING THE COMPACT SUBSIDY, AS SET
FORTH IN THIS TITLE.
  8.  A BENEFICIARY SHALL BE ELIGIBLE TO HAVE THE ANNUAL COMPACT SUBSIDY
PAID FOR NON-INSTITUTIONAL SERVICES FROM ONE OR MORE PROVIDERS FOR UP TO
AN AMOUNT THAT IS LESS THAN OR EQUAL TO  THE  ANNUAL  REGIONAL  MEDICAID
RATE  COMPUTED  FOR  NURSING  HOME  SERVICES FOR THE REGION IN WHICH THE
BENEFICIARY RESIDES.
  S 268. PROTECTED INCOME. 1. THE COMMISSIONER, AFTER CONSULTATION  WITH
THE  ADVISORY COMMITTEE, SHALL ESTABLISH PROVISIONS TO WAIVE ALL OR PART
OF THE PARTICIPATION FEE AND ALL OR PART OF THE REQUIREMENT THAT A BENE-
FICIARY PAY ANY DIFFERENCE BETWEEN THE  COMPACT  RATE  AND  THE  COMPACT
SUBSIDY  IF  THE  BENEFICIARY'S  COUNTABLE  INCOME  IN  ANY MONTH, AFTER
DEDUCTION OF THE PARTICIPATION FEE AND PAYMENT OF THE DIFFERENCE BETWEEN
THE COMPACT RATE AND THE COMPACT SUBSIDY AMOUNT WHICH THE BENEFICIARY IS
REQUIRED TO PAY FOR SERVICES, SHALL BE LESS THAN THE FOLLOWING PROTECTED
INCOME AMOUNTS:
  (A) FOR AN UNMARRIED BENEFICIARY RECEIVING CARE  IN  AN  INSTITUTIONAL
SETTING  SUCH AS A NURSING HOME, ADULT HOME, ASSISTED LIVING FACILITY OR
OTHER SIMILAR FACILITY, AN AMOUNT EQUAL TO THE  INSTITUTIONAL  PROTECTED
AMOUNT;
  (B)  FOR  AN  UNMARRIED  BENEFICIARY RECEIVING CARE AT HOME, AN AMOUNT
EQUAL TO THE MINIMUM MONTHLY MAINTENANCE NEEDS ALLOWANCE;
  (C) FOR A MARRIED COUPLE OF WHOM ONE IS A BENEFICIARY  RECEIVING  CARE
IN AN INSTITUTIONAL SETTING SUCH AS A NURSING HOME, ADULT HOME, ASSISTED
LIVING FACILITY OR OTHER SIMILAR FACILITY, AN AMOUNT EQUAL TO THE INSTI-
TUTIONAL PROTECTED AMOUNT FOR THE BENEFICIARY AND AN AMOUNT EQUAL TO THE
MINIMUM  MONTHLY MAINTENANCE NEEDS ALLOWANCE FOR THE SPOUSE WHO IS NOT A
BENEFICIARY;

S. 4064--A                          9

  (D) FOR A MARRIED COUPLE OF WHOM ONE IS A BENEFICIARY  RECEIVING  CARE
AT  HOME,  AN AMOUNT EQUAL TO ONE AND ONE-HALF TIMES THE MINIMUM MONTHLY
MAINTENANCE NEEDS ALLOWANCE;
  (E)  FOR  A  MARRIED  COUPLE, BOTH OF WHOM ARE BENEFICIARIES RECEIVING
CARE IN AN INSTITUTIONAL SETTING SUCH AS A  NURSING  HOME,  ADULT  HOME,
ASSISTED  LIVING  FACILITY OR OTHER SIMILAR FACILITY, AN AMOUNT EQUAL TO
AN INSTITUTIONAL PROTECTED AMOUNT FOR EACH BENEFICIARY; AND
  (F) FOR A MARRIED COUPLE, BOTH OF  WHOM  ARE  BENEFICIARIES  RECEIVING
CARE  AT  HOME,  AN  AMOUNT  EQUAL TO ONE AND ONE-HALF TIMES THE MINIMUM
MONTHLY MAINTENANCE NEEDS ALLOWANCE.
  2. THE COMMISSIONER SHALL ANNUALLY ADJUST SUCH INSTITUTIONAL PROTECTED
AMOUNT BY THE PERCENTAGE INCREASE OR DECREASE  IN  THE  COST  OF  LIVING
INDEX,  USING  THE YEAR IN WHICH THIS TITLE SHALL HAVE BECOME LAW AS THE
BASE YEAR.
  3. AS USED IN THIS SECTION, "MINIMUM MONTHLY MAINTENANCE NEEDS  ALLOW-
ANCE"  HAS THE SAME MEANING AS SUCH TERM IN PARAGRAPH (H) OF SUBDIVISION
TWO OF SECTION THREE HUNDRED SIXTY-SIX-C OF THE SOCIAL SERVICES LAW  AND
"INSTITUTIONAL  PROTECTED  AMOUNT" MEANS THE SUM OF ONE HUNDRED DOLLARS,
WHICH AMOUNT SHALL BE ADJUSTED BY THE COMMISSIONER ANNUALLY BY THE  SAME
PERCENTAGE  AS  THE  PERCENTAGE  INCREASE  IN THE FEDERAL CONSUMER PRICE
INDEX.
  4. WHEN MAKING THE COMPUTATION TO DETERMINE IF A BENEFICIARY'S  INCOME
WOULD  FALL  BELOW  THE APPROPRIATE PROTECTED INCOME AMOUNT, THE COMMIS-
SIONER SHALL SUBTRACT FROM THE BENEFICIARY'S  MONTHLY  COUNTABLE  INCOME
THE DIFFERENCE BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY THAT THE
BENEFICIARY  IS  REQUIRED TO PAY, AND THEN THE PARTICIPATION FEE. IF THE
REMAINING COUNTABLE INCOME AFTER  SUCH  SUBTRACTION  IS  LESS  THAN  THE
PROTECTED  AMOUNT  APPROPRIATE  TO  SUCH  BENEFICIARY,  THE COMMISSIONER
SHALL,  AFTER  CONSULTATION  WITH  THE  ADVISORY  COMMITTEE,   ESTABLISH
PROVISIONS  FOR:  (A) A REDUCTION IN THE AMOUNT OF THE PARTICIPATION FEE
TO BE PAID BY THE BENEFICIARY, (B) A REDUCTION IN PAYMENT  FOR  SERVICES
BY  THE  BENEFICIARY  OF  ANY  DIFFERENCE  TO BE PAID BY THE BENEFICIARY
BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY, AND (C) THE PERIOD  OF
TIME  DURING  WHICH REDUCTION OR REDUCTIONS SHALL BE EFFECTIVE, IN ORDER
TO ASSURE THAT THE BENEFICIARY SHALL ALWAYS RETAIN THE PROTECTED  AMOUNT
OF INCOME. ANY SUCH REDUCTION SHALL NOT BE EFFECTIVE FOR A PERIOD GREAT-
ER THAN TWELVE MONTHS IN ANY THIRTY-SIX MONTH PERIOD.
  5.  ANY OTHER PROVISION OF THIS TITLE TO THE CONTRARY NOTWITHSTANDING,
THE COMMISSIONER MAY ADDITIONALLY,  AFTER  CONSULTATION  WITH  AND  UPON
RECOMMENDATION  OF  THE  ADVISORY  COMMITTEE, ESTABLISH AS AN ADDITIONAL
BASIS FOR A REDUCTION OF THE PAYMENT FOR SERVICES BY THE BENEFICIARY  OF
ANY  DIFFERENCE  BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY AND OF
THE PARTICIPATION FEE TO BE PAID BY THE BENEFICIARY, A  FINDING  THAT  A
BENEFICIARY  LACKS  THE RESOURCES AFTER PAYMENT OF NECESSARY EXPENSES TO
REMAIN IN HIS OR HER PLACE OF RESIDENCE AFTER PAYMENT  OF  SUCH  PARTIC-
IPATION  FEE  AND/OR  PAYMENT  FOR SERVICES, IRRESPECTIVE OF WHETHER THE
BENEFICIARY'S COUNTABLE INCOME EXCEEDS THE PROTECTED INCOME AMOUNT.  THE
ADVISORY  COMMITTEE  SHALL PROVIDE THE COMMISSIONER WITH A DEFINITION OF
NECESSARY EXPENSES AS USED IN THIS SECTION  PRIOR  TO  THE  COMMISSIONER
TAKING  ANY  ACTION AUTHORIZED BY THIS SUBDIVISION. INSOFAR AS PRACTICA-
BLE, SUCH DEFINITION SHALL BE QUANTIFIABLE, AND THE  COMMISSIONER  SHALL
ESTABLISH  A  FORMULA  BY  RULE AND REGULATION FOR DETERMINING NECESSARY
EXPENSES BASED ON SUCH DEFINITION AND FOR DETERMINING WHETHER A  BENEFI-
CIARY  LACKS  THE  RESOURCES AFTER PAYMENT OF SUCH NECESSARY EXPENSES TO
REMAIN IN HIS OR HER PLACE OF RESIDENCE.

S. 4064--A                         10

  S 269. IMPOSITION OF LIEN IN CERTAIN CASES. NOTHING CONTAINED IN  THIS
TITLE  SHALL  PREVENT  THE  IMPOSITION OF A LIEN OR RECOVERY AGAINST THE
PROPERTY OF AN INDIVIDUAL ON ACCOUNT OF EXPENSES INCORRECTLY PAID  UNDER
THE COMPACT SUBSIDY.
  S  270. PROHIBITED ACTS. NO PERSON ENGAGED IN THE DEVELOPMENT, MARKET-
ING, ADVERTISING OR SALE OF ANY INSURANCE PLAN DESIGNED TO  SATISFY  THE
PLEDGE AMOUNT SHALL:
  1. GIVE LEGAL ADVICE OR OTHERWISE ENGAGE IN THE PRACTICE OF LAW.
  2. ASSUME, USE OR ADVERTISE THE TITLE OF LAWYER OR ATTORNEY AT LAW, OR
EQUIVALENT  TERMS  IN  THE  ENGLISH  LANGUAGE  OR ANY OTHER LANGUAGE, OR
REPRESENT OR ADVERTISE OTHER TITLES OR CREDENTIALS,  INCLUDING  BUT  NOT
LIMITED TO "NOTARY PUBLIC", "ACCREDITED REPRESENTATIVE OF THE DEPARTMENT
OF  HEALTH"  OR  "COMPACT CONSULTANT", THAT COULD CAUSE AN INDIVIDUAL TO
BELIEVE THAT THE PERSON POSSESSES  SPECIAL  PROFESSIONAL  SKILLS  OR  IS
AUTHORIZED TO PROVIDE ADVICE ON MATTERS RELATED TO THE COMPACT; PROVIDED
THAT  A  NOTARY  PUBLIC  LICENSED  BY THE SECRETARY OF STATE MAY USE THE
TITLE "NOTARY PUBLIC".
  3. STATE OR IMPLY THAT THE PERSON CAN OR WILL  OBTAIN  SPECIAL  FAVORS
FROM  OR HAS SPECIAL INFLUENCE WITH THE DEPARTMENT OF HEALTH, THE ADMIN-
ISTRATIVE ENTITY OR ANY OTHER GOVERNMENTAL ENTITY.
  4. DEMAND  OR  RETAIN  ANY  FEES  OR  COMPENSATION  FOR  SERVICES  NOT
PERFORMED OR COSTS THAT ARE NOT ACTUALLY INCURRED.
  5.  ADVISE,  DIRECT  OR  PERMIT  A  CUSTOMER  TO ANSWER QUESTIONS ON A
GOVERNMENT DOCUMENT, OR IN A DISCUSSION WITH A GOVERNMENT OFFICIAL, IN A
SPECIFIC WAY WHERE SUCH PERSON KNOWS OR HAS REASONABLE CAUSE TO  BELIEVE
THAT THE ANSWERS ARE FALSE OR MISLEADING.
  6.  DISCLOSE  ANY  INFORMATION TO, OR FILE ANY FORMS OR DOCUMENTS WITH
THE DEPARTMENT OF HEALTH, ANY OTHER STATE DEPARTMENT OR THE  ADMINISTRA-
TIVE ENTITY WITHOUT THE KNOWLEDGE OR CONSENT OF THE CUSTOMER.
  7. FAIL TO PROVIDE AN INDIVIDUAL WITH COPIES OF DOCUMENTS FILED WITH A
GOVERNMENTAL  ENTITY OR REFUSE TO RETURN ORIGINAL DOCUMENTS SUPPLIED BY,
PREPARED ON BEHALF OF OR PAID FOR BY THE INDIVIDUAL, UPON THE REQUEST OF
THE INDIVIDUAL.  ORIGINAL  DOCUMENTS  MUST  BE  RETURNED  PROMPTLY  UPON
REQUEST, EVEN IF THERE IS A FEE DISPUTE WITH THE INDIVIDUAL.
  8.  MAKE  ANY  MISREPRESENTATION OR FALSE STATEMENT, DIRECTLY OR INDI-
RECTLY.
  9. MAKE ANY GUARANTEE OR PROMISE TO AN INDIVIDUAL, UNLESS THERE  IS  A
BASIS  IN  FACT FOR SUCH REPRESENTATION, AND THE GUARANTEE OR PROMISE IS
IN WRITING.
  S 271. FRAUDULENT PRACTICES. 1. A PARTICIPANT WHO KNOWINGLY ENGAGES IN
FRAUDULENT PRACTICES WITH RESPECT TO  FULFILLING  OR  CLAIMING  TO  HAVE
FULFILLED  A  PLEDGE AMOUNT SHALL BE DISQUALIFIED FROM THE COMPACT. SUCH
INDIVIDUAL SHALL NOT BE DEEMED TO BE A PARTICIPANT OR BENEFICIARY OR  TO
HAVE  FULFILLED HIS OR HER PLEDGE AMOUNT, BUT SHALL NOT SURRENDER ELIGI-
BILITY TO APPLY FOR MEDICAID.
  2. ANY INDIVIDUAL WHO KNOWINGLY MAKES A FALSE STATEMENT  OR  REPRESEN-
TATION,  OR  WHO  BY  DELIBERATE CONCEALMENT OF ANY MATERIAL FACT, OR BY
IMPERSONATION OR OTHER FRAUDULENT DEVICE, OBTAINS OR ATTEMPTS TO  OBTAIN
OR  AIDS OR ABETS ANY INDIVIDUAL TO QUALIFY TO BECOME A PARTICIPANT OR A
BENEFICIARY UNDER THE COMPACT WHEN  SUCH  INDIVIDUAL  IS  NOT  OTHERWISE
ENTITLED  TO  BECOME  A  PARTICIPANT OR BENEFICIARY SHALL BE GUILTY OF A
CLASS A MISDEMEANOR, UNLESS  SUCH  ACT  CONSTITUTES  A  VIOLATION  OF  A
PROVISION  OF THE PENAL LAW, IN WHICH CASE SUCH PERSON SHALL BE PUNISHED
IN ACCORDANCE WITH THE PENALTIES FIXED BY SUCH PROVISION.
  3. ANY INDIVIDUAL WHO, WITH INTENT TO DEFRAUD, PRESENTS FOR  ALLOWANCE
OR  PAYMENT  ANY  FALSE  OR  FRAUDULENT CLAIM FOR FURNISHING SERVICES OR

S. 4064--A                         11

MERCHANDISE, OR WHO KNOWINGLY SUBMITS FALSE INFORMATION FOR THE  PURPOSE
OF  OBTAINING GREATER COMPENSATION THAN THAT TO WHICH SUCH INDIVIDUAL IS
LEGALLY ENTITLED FOR FURNISHING SERVICES OR MERCHANDISE, OR WHO KNOWING-
LY  SUBMITS FALSE INFORMATION FOR THE PURPOSE OF OBTAINING AUTHORIZATION
FOR FURNISHING SERVICES OR MERCHANDISE UNDER THIS TITLE, SHALL BE GUILTY
OF A CLASS A MISDEMEANOR, UNLESS SUCH ACT CONSTITUTES A VIOLATION  OF  A
PROVISION OF THE PENAL LAW, IN WHICH CASE HE OR SHE SHALL BE PUNISHED IN
ACCORDANCE  WITH  THE PENALTIES FIXED BY SUCH PROVISION. SUCH INDIVIDUAL
SHALL NOT BE PERMITTED TO PROVIDE SERVICES OR MERCHANDISE TO  A  PARTIC-
IPANT,  A  BENEFICIARY  OR  TO  ANOTHER  INDIVIDUAL  OR ENTITY PROVIDING
SERVICES UNDER THE COMPACT PROGRAM FOR A PERIOD OF FIVE YEARS.
  4. NOTHING CONTAINED IN THIS TITLE SHALL PREVENT THE IMPOSITION  OF  A
LIEN OR RECOVERY AGAINST THE PROPERTY OF AN INDIVIDUAL WHO HAS COMMITTED
AN ACT OR ACTS IN VIOLATION OF THIS SECTION.
  S  271-A.  PAYMENTS AND DEFAULTS. 1. PAYMENTS TO SERVICE PROVIDERS FOR
SERVICES PROVIDED TO PARTICIPANTS SHALL BE  MADE  BY  OR  ON  BEHALF  OF
PARTICIPANTS OR A PERSON OR ENTITY ACTING ON BEHALF OF THE PARTICIPANT.
  2.  PAYMENTS  TO  SERVICE PROVIDERS FOR SERVICES PROVIDED TO BENEFICI-
ARIES SHALL BE MADE BY THE  PROGRAM  MANAGEMENT  ENTITY.  A  BENEFICIARY
SHALL  BE RESPONSIBLE TO PAY ANY DIFFERENCE BETWEEN THE COMPACT RATE AND
THE COMPACT SUBSIDY  TO  THE  PROGRAM  MANAGEMENT  ENTITY.  PAYMENTS  TO
SERVICES  PROVIDERS  SHALL  BE  MADE NO LESS FREQUENTLY THAN PAYMENTS TO
PROVIDERS BY MEDICAID PURSUANT TO SECTION THREE HUNDRED  SIXTY-SEVEN  OF
THE SOCIAL SERVICES LAW.
  3. A BENEFICIARY WHO KNOWINGLY FAILS TO PAY THE DIFFERENCE BETWEEN THE
COMPACT  RATE  AND THE COMPACT SUBSIDY AS REQUIRED IN THIS TITLE, UNLESS
SUCH BENEFICIARY IS EXCUSED PURSUANT TO THE HARDSHIP PROVISIONS OF  THIS
TITLE, SHALL BE LIABLE TO THE PROGRAM MANAGEMENT ENTITY, WHICH MAY EXER-
CISE  ANY  AND  ALL  APPROPRIATE REMEDIES FOR COLLECTION OF THE DEBT.  A
DEBT UNPAID FOR A PERIOD OF NINETY DAYS, EXCEPT IN  THE  CASE  IN  WHICH
HARDSHIP  HAS  BEEN  DETERMINED,  SHALL RESULT IN SUCH BENEFICIARY BEING
DECLARED IN DEFAULT AND NO LONGER ENROLLED IN THE COMPACT.
  4. A PARTICIPANT WHO HAS FULFILLED HIS OR HER PLEDGE SHALL BE PRESUMED
ELIGIBLE TO RECEIVE SERVICES AS A BENEFICIARY FOR A PERIOD OF SIXTY DAYS
FROM THE DATE OF  DETERMINATION.  IF  A  PARTICIPANT  DETERMINED  TO  BE
PRESUMPTIVELY  ELIGIBLE  TO RECEIVE THE COMPACT SUBSIDY AS A BENEFICIARY
IS SUBSEQUENTLY DETERMINED TO BE INELIGIBLE  FOR  SUCH  ASSISTANCE,  THE
COMMISSIONER  MAY  RECOUP  FROM  SUCH  INDIVIDUAL  ANY SUMS EXPENDED FOR
ASSISTANCE DURING THE PERIOD OF PRESUMED ELIGIBILITY.
  5. A PARTICIPANT WHO KNOWINGLY DEFAULTS ON PAYMENT OF THE PLEDGE, OR A
BENEFICIARY WHO KNOWINGLY DEFAULTS ON PAYMENT OF THE DIFFERENCE  BETWEEN
THE COMPACT RATE AND THE COMPACT SUBSIDY, AND WHO IS THEREFORE NO LONGER
ENROLLED  IN THE PROGRAM, SHALL NOT BE ELIGIBLE TO RECEIVE PROTECTION OF
ASSETS OR INCOME OTHERWISE AFFORDED TO  PARTICIPANTS  AND  BENEFICIARIES
UNDER  THE  COMPACT.  NOTHING CONTAINED IN THIS TITLE SHALL BE DEEMED TO
SHIELD OR OTHERWISE EXCUSE A BENEFICIARY OR A PARTICIPANT  FROM  PAYMENT
OF A DEBT LAWFULLY INCURRED TO A SERVICE PROVIDER.
  6. UPON RECOMMENDATION OF THE ADVISORY COMMITTEE, THE COMMISSIONER MAY
ESTABLISH  RULES, INCLUDING REQUIREMENTS FOR WRITTEN AGREEMENTS, GOVERN-
ING THE PAYMENT AND COLLECTION OF DEBT BY PARTICIPANTS AND BENEFICIARIES
TO SERVICE PROVIDERS AND TO THE PROGRAM MANAGEMENT  ENTITY  AS  WELL  AS
NOTIFICATION GUIDELINES TO THE BENEFICIARY, OR A PERSON OR ENTITY ACTING
ON BEHALF OF THE BENEFICIARY TO ENSURE THAT PAYMENTS MISSED IN ERROR CAN
BE CORRECTED WITHOUT PUNISHMENT TO THE BENEFICIARY.
  S  272.  APPEALS.  1. ANY PERSON OR AN INDIVIDUAL AUTHORIZED TO ACT ON
BEHALF OF ANY SUCH PERSON MAY APPEAL TO THE COMMISSIONER FROM  DECISIONS

S. 4064--A                         12

OF THE PROGRAM MANAGEMENT ENTITY UPON GROUNDS SPECIFIED IN THIS SECTION.
ANY APPEAL PURSUANT TO THIS SECTION SHALL BE REQUESTED WITHIN SIXTY DAYS
AFTER THE DATE OF THE ACTION OR FAILURE TO ACT COMPLAINED OF.
  2.  THE  COMMISSIONER SHALL SPECIFY THE GROUNDS AND THE FORUM FOR SUCH
APPEALS IN REGULATIONS.
  (A) SUCH GROUNDS AND FORUMS SHALL INCLUDE PROVISION  OF  FAIR  HEARING
FOR  THE  FOLLOWING  AND SIMILAR ISSUES: (I) COMPUTATION OF THE VALUE OF
ASSETS OR INCOME;  (II)  WHETHER  EXPENSES  ARE  ELIGIBLE  EXPENSES  FOR
PAYMENT  OF  THE  PLEDGE,  AND  WHETHER  THE PLEDGE WAS FULFILLED; (III)
AMOUNT OF PARTICIPATION FEE OR CO-PAY; (IV)  DENIAL  OF  PAYMENT  FOR  A
SERVICE PROVIDED TO A BENEFICIARY.
  (B)  SUCH  GROUNDS  AND  FORUMS SHALL ALSO INCLUDE PROVISION FOR THIRD
PARTY REVIEW AND ARBITRATION FOR SUCH ISSUES AS: (I) THE ASSESSMENT  AND
PLAN  OF CARE; (II) PAYMENTS TO PROVIDERS; AND (III) QUALITY OF PROVIDER
SERVICES.
  3. DECISIONS OF THE COMMISSIONER PURSUANT TO  THIS  SECTION  SHALL  BE
BINDING  UPON  THE  PROGRAM  MANAGEMENT  ENTITY. SUCH GROUNDS FOR APPEAL
SHALL NOT INCLUDE DENIALS FOR ISSUES AND CIRCUMSTANCES  RELATED  TO  THE
LANGUAGE,  PROCESSING  OR  APPROVAL  OF  COVERAGE UNDER A LONG TERM CARE
INSURANCE POLICY WHICH ARE OTHERWISE THE SUBJECT OF EXTERNAL APPEALS  OF
ADVERSE  DETERMINATIONS  OF  HEALTH  CARE PLANS PURSUANT TO SECTIONS TWO
HUNDRED ONE, THREE HUNDRED ONE, ELEVEN HUNDRED NINE, THIRTY-TWO  HUNDRED
ONE,   THIRTY-TWO   HUNDRED   SIXTEEN,   THIRTY-TWO  HUNDRED  SEVENTEEN,
THIRTY-TWO HUNDRED SEVENTEEN-A, THIRTY-TWO HUNDRED TWENTY-ONE, FORTY-TWO
HUNDRED THIRTY-FIVE,  FORTY-THREE  HUNDRED  THREE,  FORTY-THREE  HUNDRED
FOUR,   FORTY-THREE   HUNDRED   FIVE,  FORTY-THREE  HUNDRED  TWENTY-ONE,
FORTY-THREE HUNDRED  TWENTY-TWO  AND  FORTY-THREE  HUNDRED  TWENTY-FOUR,
ARTICLE  FORTY-SEVEN  AND  ARTICLE  FORTY-NINE  OF THE INSURANCE LAW AND
CHAPTER FIVE HUNDRED EIGHTY-SIX OF THE LAWS OF NINETEEN HUNDRED  NINETY-
EIGHT.
  4. ANY AGGRIEVED PARTY TO AN APPEAL, OTHER THAN THE PROGRAM MANAGEMENT
ENTITY, MAY APPLY FOR REVIEW AS PROVIDED IN ARTICLE SEVENTY-EIGHT OF THE
CIVIL PRACTICE LAW AND RULES.
  S  273. TREATMENT OF ASSETS. 1. A PARTICIPANT'S HOMESTEAD SHALL NOT BE
DEEMED A COUNTABLE ASSET IF THE HOMESTEAD WAS PURCHASED MORE  THAN  FIVE
YEARS  PRIOR  TO THE DATE THAT AN INDIVIDUAL APPLIES TO BECOME A PARTIC-
IPANT IN THE COMPACT. A HOMESTEAD PURCHASED WITHIN FIVE  YEARS  OF  SUCH
DATE  SHALL  BE  DEEMED  A  COUNTABLE  ASSET, UNLESS SUCH HOMESTEAD IS A
REPLACEMENT FOR A HOMESTEAD SOLD WITHIN ONE YEAR PRIOR TO  THE  PURCHASE
DATE,  IN  WHICH CASE AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE SALE
PRICE OF THE OLD HOMESTEAD AND THE PURCHASE PRICE OF THE  NEW  HOMESTEAD
SHALL  BE DEEMED A COUNTABLE ASSET. AS USED IN THIS SECTION, "HOMESTEAD"
MEANS THE PRIMARY RESIDENCE OCCUPIED BY  A  BENEFICIARY  OR  PARTICIPANT
AND/OR  MEMBERS  OF  HIS  OR  HER FAMILY. FAMILY MEMBERS MAY INCLUDE THE
BENEFICIARY'S OR PARTICIPANT'S SPOUSE, MINOR CHILDREN,  CERTIFIED  BLIND
OR  CERTIFIED  DISABLED CHILDREN, A CARETAKER CHILD, AND OTHER DEPENDENT
RELATIVES.  HOMESTEAD SHALL BE DEEMED TO MEAN AND INCLUDE THE HOME, LAND
AND INTEGRAL PARTS SUCH AS GARAGES AND OUTBUILDINGS, AND MAY BE A CONDO-
MINIUM, COOPERATIVE APARTMENT OR MANUFACTURED HOME.  HOMESTEAD SHALL NOT
BE DEEMED TO MEAN AND INCLUDE VACATION  HOMES,  SUMMER  HOMES  OR  OTHER
PREMISES  NOT USED AS A PRIMARY RESIDENCE. THE FOREGOING TO THE CONTRARY
NOTWITHSTANDING, TO THE EXTENT THAT A HOMESTEAD PURCHASED MORE THAN FIVE
YEARS PRIOR TO THE DATE THAT AN INDIVIDUAL APPLIES TO BECOME  A  PARTIC-
IPANT  IN  THE COMPACT IS DEEMED A RESOURCE UNDER THE RULES OF THE PART-
NERSHIP FOR LONG-TERM CARE ESTABLISHED PURSUANT TO SECTION THREE HUNDRED

S. 4064--A                         13

SIXTY-SEVEN-F OF THE SOCIAL SERVICES LAW, IT  SHALL  ALSO  BE  DEEMED  A
RESOURCE UNDER THE COMPACT.
  2.  ANY  OTHER  PROVISION  OF  ANY  OTHER  LAW OR OF THIS TITLE TO THE
CONTRARY NOTWITHSTANDING, THE COMMISSIONER, ACTING ON RECOMMENDATION  OF
THE  ADVISORY  COMMITTEE,  MAY EXEMPT CERTAIN INCOME AND RESOURCES OF AN
INDIVIDUAL AND OF THE INDIVIDUAL'S SPOUSE FROM INCLUSION AS A  COUNTABLE
ASSET.
  3.  (A)  WITH  RESPECT  TO  ANNUITIES, (I) THE PRINCIPAL AMOUNT OF ANY
ANNUITY SHALL BE DEEMED A COUNTABLE ASSET IF SUCH ANNUITY  IN  PERMANENT
PAYOUT  STATUS WAS PURCHASED WITHIN FIVE YEARS OF THE DATE AN INDIVIDUAL
APPLIES TO BECOME  A  PARTICIPANT,  PROVIDED  HOWEVER  THAT  ANY  PAYOUT
AMOUNTS SHALL NOT BE TREATED AS INCOME FOR PURPOSES OF THE INCOME CALCU-
LATION;  (II)  THE PRINCIPAL AMOUNT OF ANY ANNUITY SHALL NOT BE DEEMED A
COUNTABLE ASSET IF A LEVEL PAYMENT SCHEDULE HAS BEEN IN FORCE FOR  THREE
YEARS  OR  MORE  PRIOR  TO  THE  DATE  AN INDIVIDUAL APPLIES TO BECOME A
PARTICIPANT, AND NEITHER THE INDIVIDUAL NOR  A  PERSON  ACTING  ON  SUCH
INDIVIDUAL'S  BEHALF  HAS  THE  ABILITY TO WITHDRAW AMOUNTS IN EXCESS OF
SCHEDULED PAYMENTS, PROVIDED HOWEVER  THAT  IN  SUCH  CASE,  ANY  PAYOUT
AMOUNTS  SHALL  BE  COUNTED  AS INCOME FOR PURPOSES OF THE INCOME CALCU-
LATION; AND (III) AN ANNUITY NOT IN PERMANENT  PAYOUT  STATUS  FOR  FIVE
YEARS PRIOR TO THE DATE AN INDIVIDUAL APPLIES TO BECOME A PARTICIPANT IN
THE COMPACT PROGRAM SHALL BE DEEMED A COUNTABLE ASSET.
  (B)  THE  VALUE  OF AN ASSET TRANSFERRED INTO AN IRREVOCABLE TRUST FOR
LESS THAN FULL CONSIDERATION WITHIN FIVE YEARS  PRIOR  TO  THE  DATE  OF
APPLICATION TO THE COMPACT PROGRAM SHALL BE DEEMED A COUNTABLE ASSET.
  (C)  PRE-PAID  FUNERALS  PURCHASED  FOR  AN  INDIVIDUAL  WHO BECOMES A
PARTICIPANT OR A BENEFICIARY, A SPOUSE OR FOR CHILDREN WITH DISABILITIES
SHALL NOT BE INCLUDED AS A COUNTABLE ASSET, IF MADE PRIOR TO THE DATE ON
WHICH THE PARTICIPANT FULFILLS THE PLEDGE AMOUNT.
  (D) THE VALUE OF ANY DEBTS, INCLUDING BUT NOT LIMITED  TO  OUTSTANDING
DEBT  ON  CREDIT  CARDS,  AUTO PAYMENTS, MONTHLY MORTGAGE PAYMENTS, HOME
EQUITY LOANS, REVERSE MORTGAGES AND ANY OTHER SUCH SIMILAR DEBT  INSTRU-
MENTS  SHALL  BE  DEDUCTED WHEN CALCULATING THE TOTAL VALUE OF COUNTABLE
ASSETS.
  (E) THE PRINCIPAL AMOUNT OF A MORTGAGE ON A  HOMESTEAD  SHALL  NOT  BE
DEDUCTED  IF  THE  HOMESTEAD  IS  NOT DEEMED A COUNTABLE ASSET, PROVIDED
HOWEVER THAT PAYMENTS MADE TO REDUCE  OR  ELIMINATE  ANY  SUCH  MORTGAGE
SHALL  BE DEDUCTED WHEN CALCULATING THE TOTAL VALUE OF COUNTABLE ASSETS.
IF THE HOMESTEAD IS DEEMED A COUNTABLE ASSET, THE  PRINCIPAL  AMOUNT  OF
THE  MORTGAGE  SHALL  BE  DEDUCTED  WHEN  CALCULATING THE TOTAL VALUE OF
COUNTABLE ASSETS.
  (F) IN ADDITION TO THE FOREGOING, THE FOLLOWING SHALL NOT  BE  CONSID-
ERED AS INCOME OR ASSETS:
  (I)  ANY GIFT OR GIFTS MADE BY AN INDIVIDUAL OR AN INDIVIDUAL'S SPOUSE
THAT TOTAL LESS THAN TWELVE THOUSAND DOLLARS IN ANY CALENDAR  YEAR.  THE
COMMISSIONER SHALL ANNUALLY ADJUST SUCH AMOUNT BY THE SAME PERCENTAGE AS
THE PERCENTAGE INCREASE IN THE FEDERAL CONSUMER PRICE INDEX;
  (II) EXPENDITURES TO AN EDUCATIONAL INSTITUTION OR MEDICAL FACILITY ON
BEHALF  OF  A  SPOUSE  OR  CHILD,  PROVIDED  HOWEVER THAT THESE SHALL BE
REASONABLE EXPENDITURES FOR THE PURPOSE OF MEDICAL TREATMENT  OR  EDUCA-
TION;
  (III) GIFTS THAT QUALIFY AS A CHARITABLE DEDUCTION ON THE INDIVIDUAL'S
FEDERAL INCOME TAX RETURN; AND
  (IV)  THE  AMOUNT  RECEIVED FROM A REVERSE MORTGAGE IF EXPENDED WITHIN
THIRTY DAYS OF THE TIME IN WHICH RECEIVED.  AN  AMOUNT  FROM  A  REVERSE
MORTGAGE  THAT  IS  HELD FOR LONGER THAN SUCH THIRTY DAY PERIOD SHALL BE

S. 4064--A                         14

CONSIDERED AS COUNTABLE INCOME, UNLESS USED FOR  THE  PURCHASE  OF  LONG
TERM CARE SERVICES AS DEFINED IN THIS TITLE.
  (G)  THE  COMMISSIONER,  AFTER CONSULTING WITH THE ADVISORY COMMITTEE,
SHALL ESTABLISH CRITERIA TO DETERMINE  WHETHER  EXPENDITURES  AND  GIFTS
MADE PURSUANT TO THIS SUBDIVISION ARE DISALLOWABLE TRANSACTIONS.
  S  274.  SPECIAL  PROVISIONS REGARDING COUPLES. 1. THE REQUIREMENTS OF
THIS TITLE CONCERNING DISCLOSURE OF ASSETS SHALL BE DEEMED TO  MEAN  AND
INCLUDE  DISCLOSURE  OF  ALL  ASSETS,  INCLUDING ALL ASSETS OF A MARRIED
COUPLE, WITHOUT DISTINCTION AS  TO  OWNERSHIP  BY  OR  BETWEEN  SPOUSES.
NOTWITHSTANDING  THE FOREGOING, IF THERE IS A PRE OR POST-NUPTIAL AGREE-
MENT WHICH HAS BEEN EFFECTIVE THREE OR MORE YEARS PRIOR TO THE  DATE  OF
ENROLLMENT IN THE COMPACT PROGRAM, THE VALUE OF THE ASSETS OF THE SPOUSE
NOT  ENROLLED  IN  THE COMPACT SHALL NOT BE DEEMED A COUNTABLE ASSET AND
SHALL NOT REQUIRE DISCLOSURE TO THE COMMISSIONER OR  PROGRAM  MANAGEMENT
ENTITY.
  2.  IF  ONE  SPOUSE  ENROLLS IN THE COMPACT PROGRAM AND THE OTHER DOES
NOT, AND
  (A) THE ENROLLING SPOUSE BECOMES A BENEFICIARY AFTER MEETING THE MAXI-
MUM PLEDGE AMOUNT, THE COUPLE'S ASSETS SHALL BE  EXEMPT  FROM  CONSIDER-
ATION AS A COUNTABLE ASSET.
  (B)  THE  ENROLLING  SPOUSE  BECOMES  A  PARTICIPANT PLEDGING A DOLLAR
PLEDGE AMOUNT, ONE-HALF OF THE TOTAL VALUE OF THE COUPLE'S ASSETS  SHALL
BE  EXCLUDED  FROM  CONSIDERATION  AS A COUNTABLE ASSET BEFORE ANY OTHER
CALCULATIONS AS TO THE AMOUNT REQUIRED TO MEET A DOLLAR PLEDGE AMOUNT.
  (C) THE NON-ENROLLING SPOUSE SUBSEQUENTLY APPLIES TO BECOME A  PARTIC-
IPANT  IN  THE  COMPACT,  SUCH  INDIVIDUAL MAY PLEDGE EITHER THE MAXIMUM
PLEDGE AMOUNT OR THE DOLLAR PLEDGE AMOUNT. FOR PURPOSES  OF  DETERMINING
THE  DOLLAR  PLEDGE  AMOUNT  IN  SUCH CASE, THE COUNTABLE ASSETS OF SUCH
INDIVIDUAL SHALL MEAN, BEFORE ANY OTHER CALCULATIONS AS  TO  THE  AMOUNT
REQUIRED  TO  MEET  A  DOLLAR  PLEDGE  AMOUNT,  AN AMOUNT EQUAL TO FIFTY
PERCENT OF THE REMAINING ASSETS OF THE  COUPLE  LESS  ANY  AMOUNT  STILL
REQUIRED TO MEET THE PLEDGE AMOUNT OF THE INITIAL ENROLLING SPOUSE.
  3.  A  TRANSFER OR BEQUEST OF A PROTECTED AMOUNT SHALL NOT BE DEEMED A
COUNTABLE ASSET OF THE NON-ENROLLING SPOUSE, NOR SHALL INCOME OR  GROWTH
ON  SUCH INCOME BE COUNTED IF SUCH INCOME WAS PART OF A PROTECTED AMOUNT
AND HAS BEEN KEPT IN A SEPARATE ACCOUNT. FOR PURPOSES OF THIS SECTION, A
PROTECTED AMOUNT IS THE AMOUNT REMAINING AFTER A PLEDGE HAS BEEN MET.
  4. A SURVIVING SPOUSE WHO APPLIES TO BECOME A PARTICIPANT, OR WHO IS A
PARTICIPANT OR BENEFICIARY IN THE COMPACT PROGRAM SHALL NOT BE  REQUIRED
TO  EXERCISE  A  RIGHT OF ELECTION UNDER SECTION 5-1.1-A OF THE ESTATES,
POWERS AND TRUSTS LAW.
  S 275. ADVISORY COMMITTEE. 1. THE COMMISSIONER SHALL CONVENE AN  ADVI-
SORY  COMMITTEE  TO THE COMPACT PROGRAM, CONSISTING OF ELEVEN PERSONS AS
FOLLOWS: TWO FROM THE ELDER LAW SECTION OF THE NEW YORK STATE BAR  ASSO-
CIATION  TO INCLUDE THE CHAIR OF SUCH SECTION OR A DESIGNEE APPOINTED BY
THE CHAIR WHO SHALL SERVE EX OFFICIO; TWO FROM STATEWIDE ADVOCACY GROUPS
PRIMARILY CONCERNED WITH SENIOR ISSUES; FOUR FROM PROVIDERS OF SERVICES,
INCLUDING TWO REPRESENTING INSTITUTIONAL PROVIDERS OF SERVICES  AND  TWO
REPRESENTING NON-INSTITUTIONAL PROVIDERS; TWO FROM INSURERS SELLING LONG
TERM CARE INSURANCE IN THE STATE WHO SHALL BE PERSONS WITH AT LEAST FIVE
YEARS EXPERIENCE IN THE DEVELOPMENT OF LONG TERM CARE INSURANCE PRODUCTS
AND  WHO  ARE OR WHO SHALL HAVE BEEN, SO FAR AS SHALL BE PRACTICABLE, IN
EXECUTIVE POSITIONS; AND ONE WITH AT LEAST FIVE YEARS ACTUARIAL  EXPERI-
ENCE  IN  LONG  TERM  CARE  INSURANCE  MATTERS. MEMBERS SHALL RECEIVE NO
COMPENSATION FOR THEIR SERVICES, BUT SHALL BE ALLOWED THEIR  ACTUAL  AND
NECESSARY EXPENSES INCURRED IN PERFORMANCE OF THEIR DUTIES HEREUNDER.

S. 4064--A                         15

  2.  THE PURPOSE OF SUCH ADVISORY COMMITTEE SHALL BE TO PROVIDE ADVICE,
CONSULTATION AND  RECOMMENDATIONS  ON  SPECIFIC  ISSUES  CONCERNING  THE
COMPACT PROGRAM AND ON THE FURTHER DEVELOPMENT OF THE PROGRAM, INCLUDING
BUT  NOT  LIMITED  TO  SUCH ISSUES AS THE DEFINITION OF HARDSHIP AND THE
TREATMENT OF PERSONS EXPERIENCING HARDSHIP UNDER THE COMPACT, THE TREAT-
MENT  OF  ASSETS  OF PERSONS WHO ARE LIVING SEPARATELY BUT NOT DIVORCED,
LOSS OF INCOME OR ASSETS AFTER A PARTICIPANT  HAS  AGREED  TO  A  PLEDGE
AMOUNT, SPOUSAL PROTECTIONS, AND ANY OTHER ISSUES WHICH THE COMMISSIONER
OR  THE  ADVISORY  COMMITTEE  SHALL DEEM NECESSARY OR APPROPRIATE TO THE
OPERATION OF THE COMPACT.  THE  ADVISORY  COMMITTEE  SHALL  ADDITIONALLY
CONSIDER  ISSUES  RELATED  TO  CONTINUITY  OF  CARE BY PROVIDERS AND ANY
ISSUES RELATED TO SHIFTING OR FAILING TO PROVIDE  SERVICES  OR  DROPPING
PARTICIPANTS FROM COVERAGE WHEN THEY BECOME BENEFICIARIES. IN PROMULGAT-
ING  REGULATIONS  PURSUANT TO THIS TITLE, THE COMMISSIONER SHALL CONSULT
THE ADVISORY COMMITTEE, PROVIDED HOWEVER THAT FAILURE TO RESPOND  TIMELY
BY  THE ADVISORY COMMITTEE SHALL NOT BE DEEMED A DEFECT IN THE PROMULGA-
TION OF SUCH REGULATIONS. THE ADVISORY COMMITTEE MAY REQUEST  AND  SHALL
RECEIVE  FROM  THE COMMISSIONER SUCH DATA AND ANALYSIS, OR MAY MAKE SUCH
ANALYSIS OF SUCH DATA, AS SHALL ENABLE IT TO FULFILL ITS MISSION  PURSU-
ANT TO THIS TITLE.
  3.  THE COMMITTEE SHALL ANNUALLY, OR MORE OFTEN IF THE COMMITTEE SHALL
SO DECIDE, REVIEW THE METHODOLOGY FOR SETTING THE AMOUNT OF THE  COMPACT
SUBSIDY  AND  SHALL  MAKE SUCH RECOMMENDATIONS FOR CHANGE TO THE COMMIS-
SIONER AS IT SHALL DEEM APPROPRIATE AND IN KEEPING WITH THE  SPIRIT  AND
INTENT OF THIS TITLE.
  4.  THE COMMITTEE SHALL ANNUALLY, OR MORE OFTEN IF THE COMMITTEE SHALL
SO DECIDE, REVIEW THE CONDUCT OF PROVIDERS OF  SERVICE  TO  PARTICIPANTS
AND  BENEFICIARIES  AND MAY RECOMMEND TO THE COMMISSIONER THE ESTABLISH-
MENT OF REQUIREMENTS CONCERNING SUCH CONDUCT TO PREVENT ABUSES.  IF  THE
COMMITTEE  SHALL  MAKE  SUCH  RECOMMENDATION, THE COMMISSIONER IS HEREBY
AUTHORIZED TO AND SHALL PRESCRIBE SUCH REQUIREMENTS BY  RULE  AND  REGU-
LATION.
  5.  IN  ADDITION  TO  THE  ADVISORY  COMMITTEE, THE COMMISSIONER AFTER
CONSULTATION WITH THE DIRECTOR SHALL ESTABLISH  A  TEN  MEMBER  CONSUMER
ISSUES  AND  INTEGRITY  COMMITTEE, WHOSE PURPOSE SHALL BE TO EXAMINE THE
IMPLEMENTATION AND EFFECTIVENESS OF THE COMPACT WITH RESPECT TO CONSUMER
ISSUES.  MEMBERS OF THE COMMITTEE SHALL INCLUDE PERSONS  WITH  DISABILI-
TIES,  SENIORS, ADVOCATES FOR PERSONS WITH DISABILITIES AND SENIORS, AND
INDIVIDUALS FROM THE ACADEMIC COMMUNITY WITH EXPERTISE IN LONG TERM CARE
POLICY, HEALTH POLICY AND SOCIAL POLICY.  THE  COMMITTEE  SHALL  ADDRESS
ISSUES  REFERRED TO IT BY THE COMMISSIONER OR BY THE ADVISORY COMMITTEE,
AND MAY ENGAGE IN STUDIES OF ISSUES AT ITS OWN DISCRETION.  THE  COMMIS-
SIONER  SHALL  DESIGNATE  A CHAIR FOR THE COMMITTEE. THE CONSUMER ISSUES
AND INTEGRITY COMMITTEE SHALL MEET IN A PUBLIC  SETTING  AT  LEAST  FOUR
TIMES  PER YEAR AND AT SUCH OTHER TIMES AS THE COMMISSIONER OR THE CHAIR
OF THE COMMITTEE SHALL DEEM APPROPRIATE.
  S 276. REQUIREMENT FOR CONFIDENTIALITY. EXCEPT AS  OTHERWISE  PROVIDED
IN  THIS  SECTION,  ALL  INFORMATION GATHERED FROM AN INDIVIDUAL SEEKING
ENROLLMENT IN THE  COMPACT  PROGRAM  SHALL  BE  CONFIDENTIAL,  WITH  THE
FOLLOWING EXCEPTIONS:
  1.  REQUESTS  FOR  INFORMATION  BASED UPON LEGITIMATE CRIMINAL JUSTICE
PURPOSES, AS SUCH TERM SHALL BE DEFINED IN REGULATION BY THE COMMISSION-
ER;
  2. JUDICIAL SUBPOENAS;
  3. REQUESTS FOR INFORMATION BY THE VICTIM OR CLAIMANT OR  HIS  OR  HER
AUTHORIZED REPRESENTATIVE; AND

S. 4064--A                         16

  4.  FOR  PURPOSES  NECESSARY AND PROPER FOR THE ADMINISTRATION OF THIS
TITLE.
  ANY  PERSON WHO KNOWINGLY AND INTENTIONALLY PERMITS THE RELEASE OF ANY
SUCH DATA AND INFORMATION NOT PERMITTED BY THIS TITLE SHALL BE GUILTY OF
A CLASS A MISDEMEANOR. THE COMMISSIONER SHALL PROMULGATE RULES AND REGU-
LATIONS  INSURING  THE  TIMELINESS,  COMPLETENESS,  CONFIDENTIALITY  AND
DISPOSITION OF SUCH DATA AND INFORMATION.
  S  277.  EDUCATION  AND INFORMATION. THE PROGRAM MANAGEMENT ENTITY, IN
CONSULTATION WITH THE SUPERINTENDENT OF INSURANCE, THE DIRECTOR AND  THE
COMMISSIONER,  IS  HEREBY AUTHORIZED AND DIRECTED, WITHIN AMOUNTS APPRO-
PRIATED THEREFOR  AND  OTHER  FUNDS  MADE  AVAILABLE  PURSUANT  TO  THIS
SECTION,  TO  ESTABLISH AN EDUCATION AND OUTREACH PROGRAM CONCERNING THE
COMPACT PROGRAM OR TO COORDINATE SUCH  EDUCATION  AND  OUTREACH  PROGRAM
WITH ANY SIMILAR PUBLICLY SPONSORED PROGRAM FOR THE PURPOSE OF INFORMING
AND  EDUCATING  THE GENERAL PUBLIC OF THE AVAILABILITY AND ADVANTAGES OF
THE COMPACT PROGRAM BY MEANS INCLUDING BUT NOT LIMITED TO THE FOLLOWING:
EDUCATIONAL AND INFORMATIONAL MATERIALS IN PRINT, AUDIO,  VISUAL,  ELEC-
TRONIC  OR  OTHER  MEDIA;  PUBLIC SERVICE ANNOUNCEMENTS, ADVERTISEMENTS,
MEDIA CAMPAIGNS, WORKSHOPS, MASS MAILINGS, CONFERENCES OR PRESENTATIONS;
ESTABLISHMENT OF A TOLL-FREE TELEPHONE HOTLINE AND  ELECTRONIC  SERVICES
TO  PROVIDE  INFORMATION; AND MEETINGS CONDUCTED BY ARRANGEMENT WITH THE
COMMISSIONER AND THE DIRECTOR WITH ESTATE PLANNERS, ELDER LAW  ATTORNEYS
AND  OTHER  PROFESSIONALS CONCERNING LONG TERM CARE INSURANCE, INCLUDING
THOSE POLICIES AVAILABLE THROUGH THE  PARTNERSHIP  FOR  LONG  TERM  CARE
PROGRAM.  IN  EXERCISING  ANY  POWERS  UNDER  THIS  SECTION, THE PROGRAM
MANAGEMENT ENTITY MAY CONSULT WITH APPROPRIATE AGENCIES,  ORGANIZATIONS,
CONSUMERS  AND  PROVIDERS  OF  LONG TERM CARE INSURANCE OR ORGANIZATIONS
REPRESENTING THEM. IN ADDITION TO STATE FUNDS APPROPRIATED FOR  PROGRAMS
UNDER THIS SECTION, THE COMMISSIONER AND THE DIRECTOR MAY ACCEPT FUNDING
FROM  PUBLIC  SOURCES  FOR PROGRAMS UNDER THIS SECTION AND MAY UNDERTAKE
JOINT OR COOPERATIVE PROGRAMS WITH  OTHER  PUBLIC  AGENCIES  OR  PRIVATE
NOT-FOR-PROFIT  CORPORATIONS  WHICH ARE NEITHER PROVIDERS NOR REGULATORS
OF LONG TERM CARE INSURANCE OR AFFILIATES OR UNITS OF SUCH  AGENCIES  OR
CORPORATIONS.
  S  2.  The  insurance law is amended by adding a new section 3229-a to
read as follows:
  S 3229-A. LONG TERM CARE INSURANCE PLANS QUALIFYING TO PROVIDE  COVER-
AGE  UNDER  THE  NEW  YORK  STATE  COMPACT FOR LONG TERM CARE. ANY OTHER
PROVISION OF ANY OTHER LAW TO  THE  CONTRARY  NOTWITHSTANDING,  ANY  TAX
QUALIFIED  LONG  TERM  CARE INSURANCE PLANS MAY BE USED TO MAKE PAYMENTS
FOR SERVICES PROVIDED TO  ALLOW  PARTICIPANTS  TO  MEET  PLEDGE  AMOUNTS
PURSUANT TO THE NEW YORK STATE COMPACT FOR LONG TERM CARE PROGRAM ESTAB-
LISHED  PURSUANT  TO  TITLE  FOUR  OF  ARTICLE TWO OF THE ELDER LAW. THE
SUPERINTENDENT SHALL ADDITIONALLY APPROVE INSURANCE PLANS  THAT  PROVIDE
OR  INCLUDE  TOTAL BENEFITS IN AN AMOUNT WHICH WILL ALLOW THE INDIVIDUAL
TO MEET THE  PARTICIPATION  FEE  AND  THE  CO-PAY  REQUIREMENTS  OF  THE
COMPACT.  FOR PURPOSES OF THIS SECTION, THE TERM "TAX QUALIFIED" HAS THE
SAME MEANING AS UNDER SECTION 7702B(B) OF THE INTERNAL REVENUE  CODE  OF
1986, AS AMENDED.
  S 3. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect,  impair  or  invalidate  the
remainder thereof, but shall be confined in its operation to the clause,
sentence,  paragraph,  section  or part thereof directly involved in the
controversy in which such judgment shall have been rendered.

S. 4064--A                         17

  S 4. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4064--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 8, 2009
                               ___________

Introduced  by  Sens. GOLDEN, DIAZ, LAVALLE, RANZENHOFER, HASSELL-THOMP-
  SON, ONORATO, DeFRANCISCO, PADAVAN, BONACIC, MAZIARZ, MORAHAN, VOLKER,
  FLANAGAN -- read twice and ordered printed, and  when  printed  to  be
  committed  to  the  Committee on Aging -- reported favorably from said
  committee and  committed  to  the  Committee  on  Codes  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the elder law and the  insurance  law,  in  relation  to
  establishing the New York state compact for long term care

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 2 of the elder law is amended by adding a new title
4 to read as follows:
                                 TITLE 4
                       COMPACT FOR LONG TERM CARE
SECTION 260.   SHORT TITLE.
        261.   DEFINITIONS.
        262.   COMPACT FOR LONG TERM CARE CREATED; PURPOSES.
        263.   REQUIREMENT FOR CONSULTATION.
        264.   IMPLEMENTATION.
        265.   SELECTION OF PROGRAM MANAGEMENT ENTITY.
        266.   PARTICIPATION AND PLEDGE.
        267.   BENEFITS OF PARTICIPATION.
        268.   PROTECTED INCOME.
        269.   IMPOSITION OF LIEN IN CERTAIN CASES.
        270.   PROHIBITED ACTS.
        271.   FRAUDULENT PRACTICES.
        271-A. PAYMENTS AND DEFAULTS.
        272.   APPEALS.
        273.   TREATMENT OF ASSETS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08724-06-9
              

S. 4064--B                          2

        274.   SPECIAL PROVISIONS REGARDING COUPLES.
        275.   ADVISORY COMMITTEE.
        276.   REQUIREMENT FOR CONFIDENTIALITY.
        277.   EDUCATION AND INFORMATION.
  S  260. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"NEW YORK STATE COMPACT FOR LONG TERM CARE".
  S 261. DEFINITIONS. AS USED IN THIS TITLE:
  1. "ASSESSMENT" MEANS AN ASSESSMENT TO DETERMINE WHETHER AN INDIVIDUAL
IS A CHRONICALLY ILL INDIVIDUAL WHO QUALIFIES AS A PARTICIPANT OR  AS  A
BENEFICIARY  IN  THE COMPACT, AND TO PROVIDE INFORMATION FOR THE PLAN OF
CARE REQUIRED  HEREUNDER  FOR  SUCH  ENROLLEES.  AN  ASSESSMENT  MAY  BE
PERFORMED  ONLY  BY  A  LICENSED  HEALTH CARE PRACTITIONER CONTRACTED TO
PERFORM SUCH ASSESSMENTS WITH  AN  INSURER,  THE  COMMISSIONER,  OR  THE
PROGRAM  MANAGEMENT ENTITY.   THE ASSESSMENT SHALL BE PERFORMED ANNUALLY
OR WHENEVER A CHANGE IN THE CONDITION OF THE BENEFICIARY OR  PARTICIPANT
WARRANTS  AN UPDATE TO THE PLAN OF CARE. THE COST OF AN ASSESSMENT SHALL
BE PAID BY AN INDIVIDUAL SEEKING TO ENROLL IN THE COMPACT.
  2. "ADVISORY  COMMITTEE"  MEANS  THE  ADVISORY  COMMITTEE  ESTABLISHED
PURSUANT TO THIS TITLE.
  3. "COMMISSIONER" MEANS THE COMMISSIONER OF HEALTH.
  4.  "COMPACT"  MEANS THE COMPACT FOR LONG TERM CARE PROGRAM AUTHORIZED
BY THIS TITLE.
  5. "COMPACT BENEFICIARY" OR "BENEFICIARY" MEANS A PARTICIPANT  WHO  BY
PAYING  HIS  OR  HER PLEDGE AMOUNT AND MEETING OTHER REQUIREMENTS ESTAB-
LISHED BY THIS TITLE HAS BECOME ELIGIBLE FOR THE COMPACT SUBSIDY.
  6. "COMPACT PARTICIPANT" OR "PARTICIPANT" MEANS AN INDIVIDUAL WHO: (A)
HAS APPLIED FOR MEMBERSHIP IN THE  COMPACT;  (B)  IS  A  STATE  RESIDENT
RESIDING  IN  THIS  STATE AT THE TIME OF SUCH APPLICATION AND HAS BEEN A
STATE RESIDENT FOR AT LEAST TWO YEARS PRIOR TO THE DATE OF  APPLICATION;
(C) HAS BEEN DETERMINED BY AN ASSESSMENT TO BE A CHRONICALLY ILL PERSON,
AND  A  PLAN  OF  CARE  HAS  BEEN DEVELOPED FOR SUCH PERSON; AND (D) HAS
AGREED TO PAY A PLEDGE AMOUNT AS PROVIDED IN THIS TITLE.  A  PARTICIPANT
SHALL BE DEEMED ENROLLED IN THE COMPACT.
  7.  "COMPACT RATE" MEANS THE RATE THAT A PROVIDER MAY CHARGE A COMPACT
BENEFICIARY FOR A SERVICE PROVIDED PURSUANT TO THE COMPACT. THE  COMPACT
RATE SHALL BE COMPUTED BY THE COMMISSIONER AT ONE HUNDRED TEN PERCENT OF
THE COMPACT SUBSIDY FOR THE SERVICE.
  8.  "COMPACT SUBSIDY" OR "SUBSIDY" MEANS THE SUBSIDY PROVIDED PURSUANT
TO THE COMPACT FOR THE COSTS OF ANY QUALIFIED  LONG  TERM  CARE  SERVICE
RECEIVED  BY  A  COMPACT  BENEFICIARY  PURSUANT TO THE PLAN OF CARE. THE
AMOUNT OF THE SUBSIDY SHALL EQUAL THE MEDICAID RATE ESTABLISHED FOR  THE
SAME  OR  A  SIMILAR  SERVICE  IN  THE  REGION  IN WHICH THE BENEFICIARY
RESIDES. IF THERE IS NO MEDICAID RATE FOR A SERVICE  IN  A  REGION,  THE
COMMISSIONER  SHALL  ESTABLISH  A RATE ON RECOMMENDATION OF THE ADVISORY
COMMITTEE WHICH SHALL BE APPLICABLE IN THE REGION FOR THE  SERVICE.  THE
COMMISSIONER SHALL ADJUST THE METHODOLOGY FOR ESTABLISHING THE AMOUNT OF
THE COMPACT SUBSIDY ONLY ON RECOMMENDATION OF THE ADVISORY COMMITTEE.
  9.  "COUNTABLE ASSET" SHALL HAVE THE SAME MEANING AS THE TERM "ASSETS"
IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (D) OF  SUBDIVISION  FIVE
OF SECTION THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW APPLICABLE
TO  TRANSFERS  MADE  AFTER  AUGUST TENTH, NINETEEN HUNDRED NINETY-THREE,
EXCEPT AS OTHERWISE PROVIDED HEREIN OR BY RULES ESTABLISHED PURSUANT  TO
THIS TITLE.  COUNTABLE ASSET DOES NOT INCLUDE INCOME.
  10.  "COUNTABLE  INCOME" MEANS INCOME REQUIRED TO BE CONSIDERED IN THE
CASE OF A PERSON APPLYING FOR MEDICAID PURSUANT TO SECTION THREE HUNDRED
SIXTY-SIX OF THE SOCIAL SERVICES LAW, EXCEPT AS OTHERWISE PROVIDED HERE-

S. 4064--B                          3

IN OR BY RULES ESTABLISHED PURSUANT TO THIS TITLE. THE FOLLOWING  HEALTH
CARE  EXPENDITURES SHALL BE EXCLUDED FROM COUNTABLE INCOME: EXPENDITURES
FOR MEDICARE  SUPPLEMENTAL  INSURANCE  POLICIES  MEETING  THE  STANDARDS
ESTABLISHED  PURSUANT  TO SECTION THREE THOUSAND TWO HUNDRED EIGHTEEN OF
THE INSURANCE LAW, EXPENDITURES FOR A MEDICARE  PRESCRIPTION  DRUG  PLAN
APPROVED  PURSUANT  TO  PROCEDURES ESTABLISHED BY THE U.S. DEPARTMENT OF
HEALTH AND HUMAN SERVICES, AND PREMIUMS FOR THE PURCHASE  OF  LONG  TERM
CARE INSURANCE.
  11. "DIRECTOR" MEANS THE DIRECTOR OF THE STATE OFFICE FOR THE AGING.
  12.  "FEDERAL ACT" MEANS THE HEALTH INSURANCE PORTABILITY AND ACCOUNT-
ABILITY ACT OF 1996 OR ANY  SUCCESSOR  THERETO,  AND  RULES  PROMULGATED
THEREUNDER.  THE  FOLLOWING  TERMS SHALL HAVE THE SAME MEANINGS AS UNDER
THE FEDERAL ACT: "QUALIFIED LONG TERM CARE SERVICES";  "LICENSED  HEALTH
CARE  PRACTITIONER";  "ACTIVITIES  OF  DAILY  LIVING";  "CHRONICALLY ILL
PERSON."  ANY PROVISION OF ANY OTHER LAW TO THE  CONTRARY  NOTWITHSTAND-
ING,  THE  DEPARTMENT OF HEALTH SHALL NOT BE AUTHORIZED TO ISSUE, ENACT,
PROMULGATE, OR ENFORCE ANY REQUIREMENT, RULE, REGULATION  OR  DEFINITION
THAT IS MORE RESTRICTIVE THAN THE MEANINGS ASCRIBED TO SUCH TERMS PURSU-
ANT TO THE FEDERAL ACT.  IN ADDITION:
  (A)  THE  FOREGOING  TO  THE  CONTRARY  NOTWITHSTANDING AND SOLELY FOR
PURPOSES OF DETERMINING  WHETHER  A  PARTICIPANT  OR  A  BENEFICIARY  IS
SUFFERING  FROM  "SEVERE  COGNITIVE  IMPAIRMENT," THE COMMISSIONER SHALL
REQUIRE THAT SUCH CONDITION BE CHARACTERIZED BY A DETERIORATION OR IRRE-
VERSIBLE LOSS IN INTELLECTUAL CAPACITY THAT REQUIRES SUBSTANTIAL  SUPER-
VISION TO ASSURE THE SAFETY OF THE PARTICIPANT OR OF OTHERS, AND THAT IT
SHALL  BE  ESTABLISHED  BY CLINICAL EVIDENCE AND STANDARDIZED TESTS THAT
RELIABLY MEASURE: SHORT-TERM OR  LONG-TERM  MEMORY;  ORIENTATION  AS  TO
PEOPLE,  PLACE OR TIME; DEDUCTIVE OR ABSTRACT REASONING; AND JUDGMENT AS
IT RELATES TO SAFETY AWARENESS.  THE MEANS OF DETERMINATION AS TO WHETH-
ER A PERSON HAS SUFFERED SEVERE COGNITIVE IMPAIRMENT  SHALL  INSOFAR  AS
PRACTICAL  BE  THE  SAME  AS  THOSE  USED PURSUANT TO THE FEDERAL ACT TO
DETERMINE SEVERE COGNITIVE IMPAIRMENT.    "SUBSTANTIAL  SUPERVISION"  AS
USED  IN THIS TITLE MEANS CONTINUAL OVERSIGHT THAT MAY INCLUDE CUEING BY
VERBAL PROMPTING, GESTURES OR OTHER DEMONSTRATIONS  BY  ANOTHER  PERSON,
AND  THAT IS NECESSARY TO PROTECT THE PATIENT FROM THREATS TO HIS OR HER
HEALTH OR SAFETY.
  (B) "LICENSED HEALTH CARE PRACTITIONER" SHALL BE LIMITED TO  A  PHYSI-
CIAN,  AS  DEFINED IN SECTION 1861(R)(1) OF THE SOCIAL SECURITY ACT OR A
REGISTERED PROFESSIONAL NURSE, PROVIDED THAT SUCH PERSON IS NOT A FAMILY
MEMBER AND FURTHER PROVIDED THAT  SUCH  INDIVIDUAL  SHALL  BE  LICENSED,
REGISTERED, OR CERTIFIED TO WORK IN NEW YORK.
  (C)  ANY LIMITATIONS IMPOSED BY THE FOREGOING TO THE CONTRARY NOTWITH-
STANDING, "QUALIFIED LONG TERM CARE SERVICES" SHALL INCLUDE ANY EXPENSES
FOR LONG TERM MEDICAL CARE AND SERVICES WHICH ARE OR, IN THE CASE OF  AN
INDIVIDUAL WHO IS NOT A TAXPAYER, WHICH WOULD BE DEDUCTIBLE FROM FEDERAL
GROSS  INCOME FOR SUCH TAXPAYER OR INDIVIDUAL AS LONG TERM CARE SERVICES
PURSUANT TO THE INTERNAL REVENUE CODE, AND BOTH MEDICAL AND  NON-MEDICAL
SERVICES,  INCLUDING  HOME  MODIFICATION  AND  THE PROVISION OF SERVICES
COORDINATION REQUIRED PURSUANT  TO  THE  PLAN  OF  CARE  PREPARED  BY  A
LICENSED  HEALTH CARE PRACTITIONER IN ORDER TO MAINTAIN A PARTICIPANT OR
BENEFICIARY IN HIS OR HER OWN HOME, AND SUCH ADDITIONAL SERVICES AS  MAY
BE  APPROVED  BY  THE  COMMISSIONER  UPON RECOMMENDATION OF THE ADVISORY
COMMITTEE, SO LONG AS THE COMMISSIONER SHALL BE SATISFIED THAT INCLUSION
OF SUCH ADDITIONAL SERVICES DOES NOT PREVENT RECEIPT OF  FEDERAL  FINAN-
CIAL  PARTICIPATION  UNDER  THE  MEDICAL ASSISTANCE PROGRAM OR UNDER THE
COMPACT.

S. 4064--B                          4

  13. "FULFILLED PLEDGE" MEANS A PLEDGE AMOUNT THAT HAS BEEN FULLY PAID.
ONLY PAYMENTS MADE BY A PARTICIPANT, OR  BY  ANY  PERSON  OR  ENTITY  ON
BEHALF  OF  SUCH  PARTICIPANT  SHALL BE COUNTED AS ELIGIBLE PAYMENTS FOR
FULFILLING A PLEDGE. ELIGIBLE  PAYMENTS  SHALL  INCLUDE  REASONABLE  AND
NECESSARY  PAYMENTS FOR QUALIFIED LONG TERM CARE SERVICES, AND ANY ADDI-
TIONAL EXPENSES FOR SERVICES AS MAY BE APPROVED BY THE COMMISSIONER UPON
RECOMMENDATION OF THE  ADVISORY  COMMITTEE.  SUCH  PAYMENTS  SHALL  ALSO
INCLUDE   PAYMENTS  FOR  QUALIFIED  LONG  TERM  CARE  SERVICES  FOR  THE
THREE-MONTH PERIOD PRIOR TO AN INDIVIDUAL BECOMING A PARTICIPANT. COUNT-
ABLE PAYMENTS MADE FOR A QUALIFIED LONG TERM CARE SERVICE IN  FULFILLING
A  PLEDGE  SHALL  NOT BE GREATER THAN THE AMOUNT USUALLY AND CUSTOMARILY
CHARGED FOR SUCH SERVICE BY A PROVIDER TO A NON-MEDICAID RECIPIENT.
  14. "PLAN OF CARE" MEANS A WRITTEN, INDIVIDUALIZED PLAN FOR  CARE  AND
SUPPORT SERVICES DEVELOPED BY A LICENSED HEALTH CARE PRACTITIONER FOR AN
INDIVIDUAL  SEEKING  TO ENROLL IN THE COMPACT AND AT OTHER SUCH TIMES AS
PROVIDED HEREIN. THE PLAN OF CARE SHALL BE DEVELOPED AS A RESULT  OF  AN
ASSESSMENT AND SHALL INCORPORATE ANY INFORMATION PROVIDED BY AN INDIVID-
UAL'S  PERSONAL  PHYSICIAN OR, AS APPROPRIATE, OTHER PHYSICIANS TREATING
THE INDIVIDUAL. IT SHALL FAIRLY, ACCURATELY, AND  APPROPRIATELY  ADDRESS
THE  INDIVIDUAL'S  LONG  TERM  CARE AND SUPPORT SERVICE NEEDS, AND SHALL
SPECIFY THE TYPE, FREQUENCY, AND DURATION OF ALL  SERVICES  REQUIRED  TO
MEET  THOSE  NEEDS  AND  THE  PROVIDERS  APPROPRIATE  TO  FURNISH  THOSE
SERVICES. A PLAN OF CARE SHALL BE COMPLETED AT THE SAME TIME THE ASSESS-
MENT IS PERFORMED, AND SHALL BE UPDATED ANNUALLY ON  THE  BASIS  OF  THE
ANNUAL ASSESSMENT OR WHENEVER A CHANGE IN THE CONDITION OF THE BENEFICI-
ARY  OR  PARTICIPANT  WARRANTS  AN  UPDATE. THE COST OF THE PLAN OF CARE
SHALL BE PAID BY AN INDIVIDUAL SEEKING TO ENROLL IN THE COMPACT.
  15. "PLEDGE AMOUNT" MEANS THE AMOUNT PLEDGED BY A PARTICIPANT FOR  THE
COST  OF  QUALIFIED  LONG TERM CARE SERVICES. THE PLEDGE AMOUNT SHALL BE
THE LESSER OF: (A) THE "MAXIMUM  PLEDGE  AMOUNT,"  WHICH  SHALL  BE  THE
AMOUNT  EQUAL  TO THIRTY-SIX MONTHS OF PAYMENT FOR NURSING HOME SERVICES
IN THE REGION IN WHICH THE PARTICIPANT RESIDES,  AS  APPLICABLE  AT  THE
TIME OF APPLICATION TO THE COMPACT; OR
  (B) THE "DOLLAR PLEDGE AMOUNT" WHICH SHALL BE AN AMOUNT EQUAL TO FIFTY
PERCENT  OF  A  PARTICIPANT'S COUNTABLE ASSETS. IN THE CASE OF A PARTIC-
IPANT WHOSE COUNTABLE ASSETS ARE LESS THAN FORTY THOUSAND  DOLLARS,  THE
DOLLAR  PLEDGE  AMOUNT  SHALL  BE  LIMITED  TO THE AMOUNT IN EXCESS OF A
DEDUCTIBLE AMOUNT OF TWENTY THOUSAND DOLLARS, AND THE COMMISSIONER SHALL
CALCULATE SUCH DOLLAR  PLEDGE  AMOUNT  BY  SUBTRACTING  SUCH  DEDUCTIBLE
AMOUNT  OF  TWENTY  THOUSAND  DOLLARS  FROM  THE PARTICIPANT'S COUNTABLE
ASSETS AND THE REMAINDER AMOUNT SHALL EQUAL THE  DOLLAR  PLEDGE  AMOUNT;
PROVIDED  THAT THE COMMISSIONER SHALL ANNUALLY INCREASE OR DECREASE SUCH
FORTY THOUSAND DOLLAR ASSET  AMOUNT  AND  SUCH  TWENTY  THOUSAND  DOLLAR
DEDUCTIBLE  AMOUNT  AT  THE  SAME  PERCENTAGE  RATE  AS  THE INCREASE OR
DECREASE IN THE REGIONAL RATE FOR NURSING HOME SERVICES FOR  THE  REGION
IN WHICH THE ELIGIBLE INDIVIDUAL RESIDES.
  16.  "REGION" MEANS THE FOLLOWING REGIONS: LONG ISLAND, NEW YORK CITY,
NORTHERN METROPOLITAN NEW YORK, NORTHEASTERN  NEW  YORK,  UTICA  REGION,
CENTRAL NEW YORK, ROCHESTER REGION AND WESTERN NEW YORK.
  17. "REGIONAL RATE" MEANS THE RATE SET ANNUALLY BY THE COMMISSIONER AT
EQUAL TO THE AVERAGE OF ALL RATES, EXCLUSIVE OF MEDICAID RATES, PAID FOR
THE  SAME  OR  SIMILAR  SERVICES WITHIN A REGION. THE COMMISSIONER SHALL
COMPUTE AND ANNUALLY UPDATE REGIONAL RATES FOR EACH REGION OF THE  STATE
FOR  ANY  YEAR  NOT  LATER  THAN  THE  LAST WEEK OF DECEMBER OF THE YEAR
PRECEDING SUCH YEAR.

S. 4064--B                          5

  S 262. COMPACT FOR LONG TERM CARE CREATED; PURPOSES. THE  COMPACT  FOR
LONG  TERM CARE IS HEREBY CREATED. ITS PURPOSE SHALL BE TO PROVIDE COOR-
DINATED PUBLIC AND PRIVATE COVERAGE FOR THE EXPENSES OF PROVIDING QUALI-
FIED LONG TERM CARE SERVICES TO ELIGIBLE INDIVIDUALS PURSUANT TO A  PLAN
OF CARE, A PURPOSE HEREBY DECLARED TO BE IN EVERY RESPECT AN APPROPRIATE
PUBLIC  PURPOSE  CONDUCTED FOR THE BENEFIT OF THE PEOPLE OF THE STATE OF
NEW YORK.
  S 263. REQUIREMENT FOR CONSULTATION. ANY PROVISION OF ANY OTHER LAW TO
THE CONTRARY NOTWITHSTANDING, AND IN ADDITION TO ANY  OTHER  REQUIREMENT
IMPOSED  BY THIS TITLE, THE COMMISSIONER SHALL CONSULT WITH THE DIRECTOR
AND WITH THE SUPERINTENDENT OF INSURANCE PRIOR TO  TAKING  ANY  MATERIAL
ACTION  CONCERNING  POLICY  OR  PROGRAM MATTERS REQUIRED OR PERMITTED BY
THIS TITLE, PROVIDED HOWEVER THAT THE FAILURE TO  RESPOND  TIMELY  TO  A
REQUEST  FOR  CONSULTATION AND ADVICE SHALL NOT IMPAIR OR INVALIDATE ANY
SUCH ACTION TAKEN BY THE COMMISSIONER.
  S 264. IMPLEMENTATION. ANY PROVISION OF ANY OTHER LAW TO THE  CONTRARY
NOTWITHSTANDING,  THE  COMMISSIONER  IS  HEREBY  AUTHORIZED TO AND SHALL
IMPLEMENT THE COMPACT FOR LONG TERM  CARE  PROGRAM  AUTHORIZED  BY  THIS
TITLE AND SHALL SUBMIT SUCH WAIVER APPLICATIONS AND/OR STATE PLAN AMEND-
MENTS  AS  MAY  BE NECESSARY FOR SUCH IMPLEMENTATION, PROVIDED THAT SUCH
PROGRAM AND THE PROVISIONS OF THIS TITLE SHALL BE  IMPLEMENTED  ONLY  IF
AND  FOR SO LONG AS THE COMMISSIONER SHALL BE SATISFIED THAT THEY DO NOT
PREVENT RECEIPT OF FEDERAL FINANCIAL  PARTICIPATION  UNDER  THE  MEDICAL
ASSISTANCE PROGRAM OR UNDER THE COMPACT. IN APPLYING FOR THE WAIVER, THE
COMMISSIONER  SHALL  CONSULT  WITH  THE  ADVISORY  COMMITTEE  CONCERNING
SUBMISSION OF APPROPRIATE CRITERIA FOR ASSURING THAT A SERVICE IS  PROP-
ERLY PROVIDED AND MEETS APPROPRIATE STANDARDS OF QUALITY AND COST.
  S  265. SELECTION OF PROGRAM MANAGEMENT ENTITY. 1. THE COMMISSIONER IS
HEREBY AUTHORIZED TO AND SHALL CONTRACT WITH A PROGRAM MANAGEMENT ENTITY
TO ADMINISTER THE COMPACT. THE PROCESS FOR SELECTING A  PROGRAM  MANAGE-
MENT  ENTITY  TO  MANAGE THE COMPACT PROGRAM SHALL BE GOVERNED SOLELY BY
THIS TITLE.
  2. INSOFAR AS PERMITTED UNDER ANY FEDERAL WAIVERS OR STATE PLAN AMEND-
MENTS REQUIRED FOR IMPLEMENTATION, THE COMPACT SHALL  BE  MANAGED  BY  A
PROGRAM MANAGEMENT ENTITY CONTRACTED TO AND SELECTED BY THE COMMISSIONER
BY A REQUEST FOR PROPOSALS OR A REQUEST FOR QUALIFICATIONS ISSUED PURSU-
ANT TO THIS TITLE. SUCH ENTITY SHALL BE RESPONSIBLE FOR COORDINATING AND
MANAGING  ALL  ASPECTS  OF  THE  COMPACT  PROGRAM  AND LIAISING WITH THE
DEPARTMENT OF HEALTH, INDIVIDUALS, INSURANCE COMPANIES AND  OTHER  ENTI-
TIES   TO  ASSURE  APPROPRIATE  COLLECTION  AND  VERIFICATION  OF  DATA,
COLLECTION OF PAYMENTS REQUIRED TO BE MADE TO THE STATE PURSUANT TO THIS
TITLE, VERIFICATION OF ASSESSMENTS AND CLAIMS TRACKING, AND OTHER  SIMI-
LAR ADMINISTRATIVE RESPONSIBILITIES. THE PROGRAM MANAGEMENT ENTITY SHALL
NOT  BE AN INSURANCE ENTITY OFFERING AN INSURANCE PLAN UNDER THE COMPACT
OR, UNLESS REQUIRED BY FEDERAL LAW OR REGULATION OR AS  A  CONDITION  OF
FEDERAL  APPROVAL  OF  ANY WAIVERS OR STATE PLAN AMENDMENTS NECESSARY TO
IMPLEMENT THE COMPACT, A STATE AGENCY OR A  COVERED  AUTHORITY  AS  SUCH
TERMS ARE DEFINED IN SECTION TWO-A OF THE STATE FINANCE LAW.
  3. THE COMMISSIONER, AFTER CONSULTATION WITH THE DIRECTOR OF THE DIVI-
SION OF THE BUDGET, SHALL WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE OF
THIS  SECTION, REPORT TO THE GOVERNOR AND THE LEGISLATURE WITH RECOMMEN-
DATIONS FOR THE IMPLEMENTATION OF THE  SELECTION  PROCESS.  SUCH  REPORT
SHALL DETAIL:
  (A) THE CRITERIA TO BE USED IN SELECTING THE ENTITY;
  (B) THE PROCESS TO BE USED IN THE SELECTION, INCLUDING THE ISSUANCE OF
REQUESTS FOR PROPOSALS, REQUESTS FOR QUALIFICATIONS OR OTHER MEANS;

S. 4064--B                          6

  (C)  THE  NAMES OF ANY ENTITIES ENGAGED TO DEVELOP CRITERIA AND ASSIST
IN THE SELECTION;
  (D)  TIMELINESS  FOR  THE  SELECTION  OF  THE  ENTITY  AND ISSUANCE OF
CONTRACTS;
  (E) MARKETING PLANS FOR THE PROGRAM;
  (F) MEANS TO MAKE THE SELECTION PROCESS AS TRANSPARENT AS POSSIBLE;
  (G) MEANS BY WHICH TRADE AND COMPETITIVE SECRETS SHALL BE PROTECTED;
  (H) MEANS BY WHICH INDIVIDUAL IDENTIFYING INFORMATION RELATING TO  ANY
PATIENT  OR CONSUMER ACQUIRED BY THE PROGRAM SHALL BE KEPT CONFIDENTIAL;
AND
  (I) ANY OTHER INFORMATION THE DIRECTOR OF THE DIVISION OF  THE  BUDGET
OR THE COMMISSIONER SHALL DEEM PERTINENT.
  IN  PREPARING  THE  REPORT, THE DIRECTOR OF THE DIVISION OF THE BUDGET
AND THE COMMISSIONER SHALL CONSULT WITH THE ADVISORY COMMITTEE  AND  THE
SUPERINTENDENT  OF INSURANCE, AND SHALL ADDITIONALLY CONVENE AN ADVISORY
GROUP OF INSURERS AUTHORIZED TO WRITE LONG TERM CARE INSURANCE  IN  THIS
STATE  TO  PROVIDE  COMMENTS  ON  THE REPORT, OR IF CONVENING SUCH GROUP
SHALL PROVE IMPRACTICABLE OR INAPPROPRIATE, SHALL SHARE THE REPORT  WITH
SUCH INSURERS AND INCLUDE ANY WRITTEN COMMENTS RECEIVED FROM SUCH INSUR-
ERS AND THE ADVISORY COMMITTEE WHEN THE REPORT IS ISSUED TO THE GOVERNOR
AND THE LEGISLATURE.
  4. AFTER CONSIDERATION OF ANY COMMENTS THEY MAY RECEIVE CONCERNING THE
REPORT,  THE  COMMISSIONER  AND/OR  THE  DIRECTOR OF THE DIVISION OF THE
BUDGET, AS APPROPRIATE, SHALL PROMULGATE RULES AND REGULATIONS GOVERNING
THE SELECTION PROCESS FOR A PROGRAM MANAGEMENT ENTITY.  SUCH  RULES  AND
REGULATIONS  SHALL  REFLECT THE RECOMMENDATIONS IN THE REPORT INSOFAR AS
PRACTICABLE AND ANY RECOMMENDATIONS RECEIVED BY THE COMMISSIONER AND THE
DIRECTOR OF THE DIVISION OF THE BUDGET. THE  PROGRAM  MANAGEMENT  ENTITY
SHALL  BE  SELECTED  THROUGH  ISSUANCE  OF A REQUEST FOR PROPOSALS OR IF
APPROPRIATE AND APPROVED BY THE DIRECTOR OF THE DIVISION OF THE  BUDGET,
BY  ISSUANCE  OF  A  REQUEST  FOR  QUALIFICATIONS,  AND SUCH REQUEST FOR
PROPOSALS OR REQUEST FOR QUALIFICATIONS SHALL INCORPORATE  THE  CRITERIA
AND  OTHER CONDITIONS AGREED UPON AS A RESULT OF THE PROCESS REQUIRED IN
THIS SECTION.
  S 266. PARTICIPATION AND PLEDGE. 1. AN INDIVIDUAL WHO MEETS THE CRITE-
RIA FOR BECOMING A PARTICIPANT SHALL BE ENROLLED IN THE COMPACT PROGRAM.
IN MEETING SUCH CRITERIA, THE INDIVIDUAL SHALL HAVE THE  OPTION  AT  THE
TIME  OF  APPLICATION  TO PLEDGE EITHER THE MAXIMUM PLEDGE AMOUNT OR THE
DOLLAR PLEDGE AMOUNT.
  (A) AN INDIVIDUAL WHO ELECTS TO PLEDGE THE MAXIMUM PLEDGE AMOUNT SHALL
PAY OR HAVE PAID ON HIS OR HER BEHALF BY ANY PERSON OR ENTITY AN  AMOUNT
FOR  THE  PURCHASE OF QUALIFIED LONG TERM CARE SERVICES THAT IS EQUAL TO
THIRTY-SIX MONTHS OF PAYMENT AT  THE  REGIONAL  RATE  FOR  NURSING  HOME
SERVICES  IN  THE REGION IN WHICH THE PARTICIPANT RESIDES AS OF THE DATE
THE INDIVIDUAL APPLIES TO BECOME A PARTICIPANT.
  (B) AN INDIVIDUAL WHO ELECTS TO PLEDGE THE DOLLAR PLEDGE AMOUNT  SHALL
PAY  OR HAVE PAID ON HIS OR HER BEHALF BY ANY PERSON OR ENTITY AN AMOUNT
FOR THE PURCHASE OF QUALIFIED LONG TERM CARE SERVICES THAT IS  EQUAL  TO
FIFTY  PERCENT  OF  A  PARTICIPANT'S COUNTABLE ASSETS.   SUCH INDIVIDUAL
SHALL SUBMIT: (I) A VERIFIED STATEMENT OF COUNTABLE ASSETS UNDER PENALTY
OF PERJURY LISTING ALL COUNTABLE CURRENT ASSETS HELD BY  THE  INDIVIDUAL
AT  THE  TIME  OF APPLICATION AND ANY ASSET TRANSFERS FOR LESS THAN FULL
VALUE DURING THE FIVE YEARS PRECEDING SUCH DATE OF APPLICATION, (II) THE
INDIVIDUAL'S FIVE MOST RECENT YEARS OF  STATE  AND  FEDERAL  INCOME  TAX
RETURNS,  AND  (III)  ADDITIONAL DOCUMENTATION AS THE PROGRAM MANAGEMENT
ENTITY, WITH THE APPROVAL OF THE COMMISSIONER UPON RECOMMENDATION OF THE

S. 4064--B                          7

ADVISORY COMMITTEE, SHALL DEEM  REASONABLE  AND  APPROPRIATE  TO  VERIFY
ASSETS,  THE  VALUES  OF  SUCH  ASSETS,  AND  THE VALIDITY OF THE PLEDGE
AMOUNT.
  (C)  DOCUMENTATION  CONCERNING  THE  PLEDGE AMOUNT, THE RESULTS OF THE
ASSESSMENT AND EVIDENCE OF A FULFILLED PLEDGE SHALL BE SUBMITTED TO  THE
PROGRAM MANAGEMENT ENTITY IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER.
  (D)  THE FOREGOING PROVISIONS OF THIS SECTION TO THE CONTRARY NOTWITH-
STANDING, THE PLEDGE AMOUNT MAY BE ADJUSTED IN THE EVENT THAT  AN  INDI-
VIDUAL  IS  SUBJECT  TO EXTRAORDINARY CIRCUMSTANCES, AS THE COMMISSIONER
SHALL DETERMINE, BUT THE  DESCRIPTION  OR  DEFINITION  OF  EXTRAORDINARY
CIRCUMSTANCES SHALL BE ESTABLISHED ONLY UPON RECOMMENDATION OF THE ADVI-
SORY COMMITTEE.
  2.  A  PARTICIPANT  WHO  FULFILLS  HIS OR HER PLEDGE SHALL BE DEEMED A
BENEFICIARY AND SHALL BE ELIGIBLE FOR THE COMPACT SUBSIDY. A PARTICIPANT
WHO FAILS TO FULFILL HIS OR HER PLEDGE SHALL NOT BE ELIGIBLE TO BECOME A
BENEFICIARY, BUT SHALL NOT SURRENDER ELIGIBILITY TO APPLY  FOR  MEDICAID
OR  ELIGIBILITY  TO  APPLY  FOR  THE COMPACT SUBSIDY IF SUCH PARTICIPANT
SHALL LATER BECOME ELIGIBLE.
  3. NOTWITHSTANDING  ANY  SIMILARITY  IN  ELIGIBILITY  REQUIREMENTS  OR
COMMONALITY  IN  THE  DEFINITIONS  OF  ASSET, INCOME OR OTHER ITEMS, AND
EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, A PARTICIPANT  OR  BENEFICI-
ARY,  AS THE CASE MAY BE, SHALL BE EXEMPT FROM THE RESOURCE TESTS, LIENS
AND OTHER REQUIREMENTS AND IMPOSITIONS THAT WOULD OTHERWISE BE  APPLICA-
BLE TO PERSONS APPLYING FOR OR RECEIVING MEDICAID.
  4.  THE  PURCHASE OF QUALIFIED LONG TERM CARE SERVICES FOR THE PURPOSE
OF FULFILLING THE PLEDGE SHALL BE RESTRICTED TO THE PURCHASE  OF  QUALI-
FIED  LONG  TERM  CARE  SERVICES  IN THE STATE SO LONG AS THE INDIVIDUAL
MEETS THE REQUIREMENTS OF THIS TITLE  WITH  RESPECT  TO  FULFILLING  THE
PLEDGE,  AND  PROVIDED  FURTHER  THAT A BENEFICIARY MAY ONLY RECEIVE THE
COMPACT SUBSIDY FOR SERVICES RECEIVED WITHIN THIS STATE.
  5. COUNTABLE PAYMENTS MADE FOR A QUALIFIED LONG TERM CARE  SERVICE  IN
FULFILLING  A  PLEDGE  SHALL  NOT BE GREATER THAN THE AMOUNT USUALLY AND
CUSTOMARILY CHARGED FOR SUCH SERVICE BY A  PROVIDER  TO  A  NON-MEDICAID
RECIPIENT  AND  SHALL INCLUDE REASONABLE AND NECESSARY EXPENSES PAID FOR
SUCH SERVICES, PROVIDED, HOWEVER THAT THE COMMISSIONER,  ON  RECOMMENDA-
TION OF THE ADVISORY COMMITTEE, MAY ESTABLISH CRITERIA FOR ASSURING THAT
A SERVICE IS PROPERLY PROVIDED AND MEETS APPROPRIATE STANDARDS OF QUALI-
TY  AND  COST.  THE  PROGRAM  MANAGEMENT  ENTITY  SHALL BE AUTHORIZED TO
UTILIZE SUCH CRITERIA IN ESTABLISHING PARAMETERS FOR PROPER  AND  APPRO-
PRIATE  PAYMENT FOR SERVICES AND ASSURANCES OF QUALITY. THE COMMISSIONER
SHALL REQUIRE SUBMISSION TO THE PROGRAM MANAGEMENT  ENTITY  OF  PERIODIC
UPDATES OF PAYMENTS MADE TOWARD FULFILLING THE PLEDGE AND REVIEW OF SUCH
PAYMENTS  BY  THE PROGRAM MANAGEMENT ENTITY FOR ELIGIBILITY. THE PROGRAM
MANAGEMENT ENTITY SHALL ADVISE THE PARTICIPANT OF ANY  INELIGIBILITY  OF
ANY SUCH PAYMENTS.
  6.  THE COMMISSIONER SHALL ESTABLISH A SEAMLESS PROCESS FOR TRANSITION
OF AN INDIVIDUAL FROM PARTICIPANT TO BENEFICIARY  WHEN  SUCH  INDIVIDUAL
HAS  FULFILLED THE REQUIREMENTS ESTABLISHED PURSUANT TO THIS TITLE. SUCH
SEAMLESS PROCESS MAY INCLUDE, FOR EXAMPLE, APPLICATION  TO  RECEIVE  THE
PUBLIC  SUBSIDY  AS  A  BENEFICIARY AT THE SAME TIME THAT THE INDIVIDUAL
ENROLLS AS A PARTICIPANT IN THE COMPACT, SO  THAT  WHEN  THE  PLEDGE  IS
FULFILLED,  THE  INDIVIDUAL  AUTOMATICALLY  TRANSITIONS TO THE STATUS OF
BENEFICIARY ELIGIBLE FOR THE COMPACT SUBSIDY. INSOFAR AS  FEASIBLE,  THE
TRANSITION SHOULD BE MANAGED BY THE PROGRAM MANAGEMENT ENTITY.

S. 4064--B                          8

  S  267.  BENEFITS OF PARTICIPATION.  1. A BENEFICIARY WHO FULFILLS THE
PLEDGE SHALL BE ENTITLED TO PRESERVE HIS OR HER RESOURCES AND  SHALL  BE
ELIGIBLE TO RECEIVE THE COMPACT SUBSIDY.
  2.  A BENEFICIARY SHALL NOT BE REQUIRED TO SUBMIT TO RESOURCE REQUIRE-
MENTS OR LIMITATIONS, OR TO THE RECOVERY OF PAYMENTS MADE BY  THE  STATE
FROM  THE  ESTATES OF SUCH INDIVIDUALS, OR TO THE IMPOSITION OF LIENS ON
THE HOMES OF PERSONS, SUCH AS THOSE WHICH ARE IMPOSED  ON  BENEFICIARIES
OF  THE  MEDICAID PROGRAM PURSUANT TO SECTION THREE HUNDRED SIXTY-SIX OR
SECTION THREE HUNDRED SIXTY-NINE OF  THE  SOCIAL  SERVICES  LAW,  UNLESS
OTHERWISE PROVIDED IN OR PURSUANT TO THIS TITLE.
  3.  A  BENEFICIARY  SHALL  BE ELIGIBLE TO HAVE THE SUBSIDY PAID TO THE
PROVIDER OF SERVICES FOR THE COSTS OF QUALIFIED LONG TERM CARE  SERVICES
FROM ANY WILLING PROVIDER SELECTED BY SUCH BENEFICIARY.
  4. A BENEFICIARY SHALL BE ELIGIBLE TO RECEIVE QUALIFIED LONG TERM CARE
SERVICES AT A RATE CHARGED BY A PROVIDER OF SERVICES WHICH IS NO GREATER
THAN THE COMPACT RATE.
  5.  A BENEFICIARY SHALL NOT BE RESPONSIBLE FOR PAYMENT FOR SUCH QUALI-
FIED LONG TERM CARE SERVICES OF ANY AMOUNT GREATER THAN  THE  DIFFERENCE
BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY.
  6.  A BENEFICIARY SHALL ANNUALLY REMIT A PARTICIPATION FEE TO MAINTAIN
ELIGIBILITY IN THE COMPACT, EQUAL TO TWENTY-FIVE PERCENT OF SUCH BENEFI-
CIARY'S COUNTABLE INCOME.  SUCH FEE SHALL BE REMITTED TO THE COMMISSION-
ER OR, IF SO DIRECTED BY THE COMMISSIONER,  TO  THE  PROGRAM  MANAGEMENT
ENTITY  FOR  TRANSMITTAL  TO  THE  COMMISSIONER. THE COMMISSIONER, AFTER
CONSULTATION WITH THE ADVISORY COMMITTEE, SHALL MAKE PROVISION TO  ALLOW
A  BENEFICIARY  TO  MAKE  PAYMENTS  ON  A MONTHLY OR OTHER BASIS, AT THE
OPTION OF THE BENEFICIARY.
  7. A BENEFICIARY SHALL RETAIN A PROTECTED AMOUNT OF INCOME DURING  THE
PERIOD IN WHICH THE BENEFICIARY IS RECEIVING THE COMPACT SUBSIDY, AS SET
FORTH IN THIS TITLE.
  8.  A BENEFICIARY SHALL BE ELIGIBLE TO HAVE THE ANNUAL COMPACT SUBSIDY
PAID FOR NON-INSTITUTIONAL SERVICES FROM ONE OR MORE PROVIDERS FOR UP TO
AN AMOUNT THAT IS LESS THAN OR EQUAL TO  THE  ANNUAL  REGIONAL  MEDICAID
RATE  COMPUTED  FOR  NURSING  HOME  SERVICES FOR THE REGION IN WHICH THE
BENEFICIARY RESIDES.
  S 268. PROTECTED INCOME. 1. THE COMMISSIONER, AFTER CONSULTATION  WITH
THE  ADVISORY COMMITTEE, SHALL ESTABLISH PROVISIONS TO WAIVE ALL OR PART
OF THE PARTICIPATION FEE AND ALL OR PART OF THE REQUIREMENT THAT A BENE-
FICIARY PAY ANY DIFFERENCE BETWEEN THE  COMPACT  RATE  AND  THE  COMPACT
SUBSIDY  IF  THE  BENEFICIARY'S  COUNTABLE  INCOME  IN  ANY MONTH, AFTER
DEDUCTION OF THE PARTICIPATION FEE AND PAYMENT OF THE DIFFERENCE BETWEEN
THE COMPACT RATE AND THE COMPACT SUBSIDY AMOUNT WHICH THE BENEFICIARY IS
REQUIRED TO PAY FOR SERVICES, SHALL BE LESS THAN THE FOLLOWING PROTECTED
INCOME AMOUNTS:
  (A) FOR AN UNMARRIED BENEFICIARY RECEIVING CARE  IN  AN  INSTITUTIONAL
SETTING  SUCH AS A NURSING HOME, ADULT HOME, ASSISTED LIVING FACILITY OR
OTHER SIMILAR FACILITY, AN AMOUNT EQUAL TO THE  INSTITUTIONAL  PROTECTED
AMOUNT;
  (B)  FOR  AN  UNMARRIED  BENEFICIARY RECEIVING CARE AT HOME, AN AMOUNT
EQUAL TO THE MINIMUM MONTHLY MAINTENANCE NEEDS ALLOWANCE;
  (C) FOR A MARRIED COUPLE OF WHOM ONE IS A BENEFICIARY  RECEIVING  CARE
IN AN INSTITUTIONAL SETTING SUCH AS A NURSING HOME, ADULT HOME, ASSISTED
LIVING FACILITY OR OTHER SIMILAR FACILITY, AN AMOUNT EQUAL TO THE INSTI-
TUTIONAL PROTECTED AMOUNT FOR THE BENEFICIARY AND AN AMOUNT EQUAL TO THE
MINIMUM  MONTHLY MAINTENANCE NEEDS ALLOWANCE FOR THE SPOUSE WHO IS NOT A
BENEFICIARY;

S. 4064--B                          9

  (D) FOR A MARRIED COUPLE OF WHOM ONE IS A BENEFICIARY  RECEIVING  CARE
AT  HOME,  AN AMOUNT EQUAL TO ONE AND ONE-HALF TIMES THE MINIMUM MONTHLY
MAINTENANCE NEEDS ALLOWANCE;
  (E)  FOR  A  MARRIED  COUPLE, BOTH OF WHOM ARE BENEFICIARIES RECEIVING
CARE IN AN INSTITUTIONAL SETTING SUCH AS A  NURSING  HOME,  ADULT  HOME,
ASSISTED  LIVING  FACILITY OR OTHER SIMILAR FACILITY, AN AMOUNT EQUAL TO
AN INSTITUTIONAL PROTECTED AMOUNT FOR EACH BENEFICIARY; AND
  (F) FOR A MARRIED COUPLE, BOTH OF  WHOM  ARE  BENEFICIARIES  RECEIVING
CARE  AT  HOME,  AN  AMOUNT  EQUAL TO ONE AND ONE-HALF TIMES THE MINIMUM
MONTHLY MAINTENANCE NEEDS ALLOWANCE.
  2. THE COMMISSIONER SHALL ANNUALLY ADJUST SUCH INSTITUTIONAL PROTECTED
AMOUNT BY THE PERCENTAGE INCREASE OR DECREASE  IN  THE  COST  OF  LIVING
INDEX,  USING  THE YEAR IN WHICH THIS TITLE SHALL HAVE BECOME LAW AS THE
BASE YEAR.
  3. AS USED IN THIS SECTION, "MINIMUM MONTHLY MAINTENANCE NEEDS  ALLOW-
ANCE"  HAS THE SAME MEANING AS SUCH TERM IN PARAGRAPH (H) OF SUBDIVISION
TWO OF SECTION THREE HUNDRED SIXTY-SIX-C OF THE SOCIAL SERVICES LAW  AND
"INSTITUTIONAL  PROTECTED  AMOUNT" MEANS THE SUM OF ONE HUNDRED DOLLARS,
WHICH AMOUNT SHALL BE ADJUSTED BY THE COMMISSIONER ANNUALLY BY THE  SAME
PERCENTAGE  AS  THE  PERCENTAGE  INCREASE  IN THE FEDERAL CONSUMER PRICE
INDEX.
  4. WHEN MAKING THE COMPUTATION TO DETERMINE IF A BENEFICIARY'S  INCOME
WOULD  FALL  BELOW  THE APPROPRIATE PROTECTED INCOME AMOUNT, THE COMMIS-
SIONER SHALL SUBTRACT FROM THE BENEFICIARY'S  MONTHLY  COUNTABLE  INCOME
THE DIFFERENCE BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY THAT THE
BENEFICIARY  IS  REQUIRED TO PAY, AND THEN THE PARTICIPATION FEE. IF THE
REMAINING COUNTABLE INCOME AFTER  SUCH  SUBTRACTION  IS  LESS  THAN  THE
PROTECTED  AMOUNT  APPROPRIATE  TO  SUCH  BENEFICIARY,  THE COMMISSIONER
SHALL,  AFTER  CONSULTATION  WITH  THE  ADVISORY  COMMITTEE,   ESTABLISH
PROVISIONS  FOR:  (A) A REDUCTION IN THE AMOUNT OF THE PARTICIPATION FEE
TO BE PAID BY THE BENEFICIARY, (B) A REDUCTION IN PAYMENT  FOR  SERVICES
BY  THE  BENEFICIARY  OF  ANY  DIFFERENCE  TO BE PAID BY THE BENEFICIARY
BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY, AND (C) THE PERIOD  OF
TIME  DURING  WHICH REDUCTION OR REDUCTIONS SHALL BE EFFECTIVE, IN ORDER
TO ASSURE THAT THE BENEFICIARY SHALL ALWAYS RETAIN THE PROTECTED  AMOUNT
OF INCOME. ANY SUCH REDUCTION SHALL NOT BE EFFECTIVE FOR A PERIOD GREAT-
ER THAN TWELVE MONTHS IN ANY THIRTY-SIX MONTH PERIOD.
  5.  ANY OTHER PROVISION OF THIS TITLE TO THE CONTRARY NOTWITHSTANDING,
THE COMMISSIONER MAY ADDITIONALLY,  AFTER  CONSULTATION  WITH  AND  UPON
RECOMMENDATION  OF  THE  ADVISORY  COMMITTEE, ESTABLISH AS AN ADDITIONAL
BASIS FOR A REDUCTION OF THE PAYMENT FOR SERVICES BY THE BENEFICIARY  OF
ANY  DIFFERENCE  BETWEEN THE COMPACT RATE AND THE COMPACT SUBSIDY AND OF
THE PARTICIPATION FEE TO BE PAID BY THE BENEFICIARY, A  FINDING  THAT  A
BENEFICIARY  LACKS  THE RESOURCES AFTER PAYMENT OF NECESSARY EXPENSES TO
REMAIN IN HIS OR HER PLACE OF RESIDENCE AFTER PAYMENT  OF  SUCH  PARTIC-
IPATION  FEE  AND/OR  PAYMENT  FOR SERVICES, IRRESPECTIVE OF WHETHER THE
BENEFICIARY'S COUNTABLE INCOME EXCEEDS THE PROTECTED INCOME AMOUNT.  THE
ADVISORY  COMMITTEE  SHALL PROVIDE THE COMMISSIONER WITH A DEFINITION OF
NECESSARY EXPENSES AS USED IN THIS SECTION  PRIOR  TO  THE  COMMISSIONER
TAKING  ANY  ACTION AUTHORIZED BY THIS SUBDIVISION. INSOFAR AS PRACTICA-
BLE, SUCH DEFINITION SHALL BE QUANTIFIABLE, AND THE  COMMISSIONER  SHALL
ESTABLISH  A  FORMULA  BY  RULE AND REGULATION FOR DETERMINING NECESSARY
EXPENSES BASED ON SUCH DEFINITION AND FOR DETERMINING WHETHER A  BENEFI-
CIARY  LACKS  THE  RESOURCES AFTER PAYMENT OF SUCH NECESSARY EXPENSES TO
REMAIN IN HIS OR HER PLACE OF RESIDENCE.

S. 4064--B                         10

  S 269. IMPOSITION OF LIEN IN CERTAIN CASES. NOTHING CONTAINED IN  THIS
TITLE  SHALL  PREVENT  THE  IMPOSITION OF A LIEN OR RECOVERY AGAINST THE
PROPERTY OF AN INDIVIDUAL ON ACCOUNT OF EXPENSES INCORRECTLY PAID  UNDER
THE COMPACT SUBSIDY.
  S  270. PROHIBITED ACTS. NO PERSON ENGAGED IN THE DEVELOPMENT, MARKET-
ING, ADVERTISING OR SALE OF ANY INSURANCE PLAN DESIGNED TO  SATISFY  THE
PLEDGE AMOUNT SHALL:
  1. GIVE LEGAL ADVICE OR OTHERWISE ENGAGE IN THE PRACTICE OF LAW.
  2. ASSUME, USE OR ADVERTISE THE TITLE OF LAWYER OR ATTORNEY AT LAW, OR
EQUIVALENT  TERMS  IN  THE  ENGLISH  LANGUAGE  OR ANY OTHER LANGUAGE, OR
REPRESENT OR ADVERTISE OTHER TITLES OR CREDENTIALS,  INCLUDING  BUT  NOT
LIMITED TO "NOTARY PUBLIC", "ACCREDITED REPRESENTATIVE OF THE DEPARTMENT
OF  HEALTH"  OR  "COMPACT CONSULTANT", THAT COULD CAUSE AN INDIVIDUAL TO
BELIEVE THAT THE PERSON POSSESSES  SPECIAL  PROFESSIONAL  SKILLS  OR  IS
AUTHORIZED TO PROVIDE ADVICE ON MATTERS RELATED TO THE COMPACT; PROVIDED
THAT  A  NOTARY  PUBLIC  LICENSED  BY THE SECRETARY OF STATE MAY USE THE
TITLE "NOTARY PUBLIC".
  3. STATE OR IMPLY THAT THE PERSON CAN OR WILL  OBTAIN  SPECIAL  FAVORS
FROM  OR HAS SPECIAL INFLUENCE WITH THE DEPARTMENT OF HEALTH, THE ADMIN-
ISTRATIVE ENTITY OR ANY OTHER GOVERNMENTAL ENTITY.
  4. DEMAND  OR  RETAIN  ANY  FEES  OR  COMPENSATION  FOR  SERVICES  NOT
PERFORMED OR COSTS THAT ARE NOT ACTUALLY INCURRED.
  5.  ADVISE,  DIRECT  OR  PERMIT  A  CUSTOMER  TO ANSWER QUESTIONS ON A
GOVERNMENT DOCUMENT, OR IN A DISCUSSION WITH A GOVERNMENT OFFICIAL, IN A
SPECIFIC WAY WHERE SUCH PERSON KNOWS OR HAS REASONABLE CAUSE TO  BELIEVE
THAT THE ANSWERS ARE FALSE OR MISLEADING.
  6.  DISCLOSE  ANY  INFORMATION TO, OR FILE ANY FORMS OR DOCUMENTS WITH
THE DEPARTMENT OF HEALTH, ANY OTHER STATE DEPARTMENT OR THE  ADMINISTRA-
TIVE ENTITY WITHOUT THE KNOWLEDGE OR CONSENT OF THE CUSTOMER.
  7. FAIL TO PROVIDE AN INDIVIDUAL WITH COPIES OF DOCUMENTS FILED WITH A
GOVERNMENTAL  ENTITY OR REFUSE TO RETURN ORIGINAL DOCUMENTS SUPPLIED BY,
PREPARED ON BEHALF OF OR PAID FOR BY THE INDIVIDUAL, UPON THE REQUEST OF
THE INDIVIDUAL.  ORIGINAL  DOCUMENTS  MUST  BE  RETURNED  PROMPTLY  UPON
REQUEST, EVEN IF THERE IS A FEE DISPUTE WITH THE INDIVIDUAL.
  8.  MAKE  ANY  MISREPRESENTATION OR FALSE STATEMENT, DIRECTLY OR INDI-
RECTLY.
  9. MAKE ANY GUARANTEE OR PROMISE TO AN INDIVIDUAL, UNLESS THERE  IS  A
BASIS  IN  FACT FOR SUCH REPRESENTATION, AND THE GUARANTEE OR PROMISE IS
IN WRITING.
  S 271. FRAUDULENT PRACTICES. 1. ANY APPLICANT  WHO  IS  FOUND  BY  THE
COMMISSIONER, AFTER NOTICE AND A HEARING, TO HAVE KNOWINGLY MADE A FALSE
STATEMENT OR REPRESENTATION CONCERNING A FACT MATERIAL TO THE FULFILLING
OF  A  PLEDGE  AMOUNT,  AS  PROVIDED  IN  THIS  ARTICLE, OR DELIBERATELY
CONCEALED SUCH A FACT, SHALL BE DISQUALIFIED FROM  THE  COMPACT  PROGRAM
PROVIDED  FOR IN THIS ARTICLE. SUCH INDIVIDUAL SHALL NOT BE DEEMED TO BE
A PARTICIPANT OR BENEFICIARY OR TO HAVE  FULFILLED  HIS  OR  HER  PLEDGE
AMOUNT,  BUT  SHALL  NOT  SURRENDER  HIS OR HER ELIGIBILITY TO APPLY FOR
MEDICAID.
  2. NO PERSON SHALL KNOWINGLY MAKE A FALSE STATEMENT OR  REPRESENTATION
OF  A  MATERIAL FACT, OR DELIBERATELY CONCEAL A MATERIAL FACT, OR OTHER-
WISE SEEK BENEFITS BY IMPERSONATION OR OTHER FRAUDULENT DEVICE, IN THEIR
WRITTEN APPLICATION FOR BENEFITS UNDER THIS TITLE.
  3. NO PERSON SHALL, WITH INTENT TO DEFRAUD, PRESENT FOR  ALLOWANCE  OR
PAYMENT  ANY  FRAUDULENT  CLAIM  FOR  FURNISHING SERVICES OR MERCHANDISE
UNDER THIS TITLE, OR KNOWINGLY SUBMIT FALSE INFORMATION FOR THE  PURPOSE
OF  OBTAINING GREATER COMPENSATION THAN THAT TO WHICH SUCH INDIVIDUAL IS

S. 4064--B                         11

LEGALLY ENTITLED FOR  FURNISHING  SERVICES  OR  MERCHANDISE  UNDER  THIS
TITLE,  OR KNOWINGLY SUBMIT FALSE INFORMATION FOR THE PURPOSE OF OBTAIN-
ING AUTHORIZATION FOR FURNISHING  SERVICES  OR  MERCHANDISE  UNDER  THIS
TITLE.
  4.  ANY  PERSON  WHO  RECEIVES A BENEFIT PROVIDED FOR UNDER THIS TITLE
BASED UPON AN APPLICATION WHICH VIOLATES SUBDIVISION  TWO  OR  THREE  OF
THIS  SECTION  SHALL  BE GUILTY OF A CLASS A MISDEMEANOR. SUCH A FINDING
SHALL NOT PREVENT AN ACTION TO RECOVER THE VALUE OF THE BENEFIT PROVIDED
FOR UNDER THIS TITLE AGAINST THE INDIVIDUAL FOUND TO HAVE VIOLATED  THIS
SECTION.
  S  271-A.  PAYMENTS AND DEFAULTS. 1. PAYMENTS TO SERVICE PROVIDERS FOR
SERVICES PROVIDED TO PARTICIPANTS SHALL BE  MADE  BY  OR  ON  BEHALF  OF
PARTICIPANTS OR A PERSON OR ENTITY ACTING ON BEHALF OF THE PARTICIPANT.
  2.  PAYMENTS  TO  SERVICE PROVIDERS FOR SERVICES PROVIDED TO BENEFICI-
ARIES SHALL BE MADE BY THE  PROGRAM  MANAGEMENT  ENTITY.  A  BENEFICIARY
SHALL  BE RESPONSIBLE TO PAY ANY DIFFERENCE BETWEEN THE COMPACT RATE AND
THE COMPACT SUBSIDY  TO  THE  PROGRAM  MANAGEMENT  ENTITY.  PAYMENTS  TO
SERVICES  PROVIDERS  SHALL  BE  MADE NO LESS FREQUENTLY THAN PAYMENTS TO
PROVIDERS BY MEDICAID PURSUANT TO SECTION THREE HUNDRED  SIXTY-SEVEN  OF
THE SOCIAL SERVICES LAW.
  3. A BENEFICIARY WHO KNOWINGLY FAILS TO PAY THE DIFFERENCE BETWEEN THE
COMPACT  RATE  AND THE COMPACT SUBSIDY AS REQUIRED IN THIS TITLE, UNLESS
SUCH BENEFICIARY IS EXCUSED PURSUANT TO THE HARDSHIP PROVISIONS OF  THIS
TITLE, SHALL BE LIABLE TO THE PROGRAM MANAGEMENT ENTITY, WHICH MAY EXER-
CISE  ANY  AND  ALL  APPROPRIATE REMEDIES FOR COLLECTION OF THE DEBT.  A
DEBT UNPAID FOR A PERIOD OF NINETY DAYS, EXCEPT IN  THE  CASE  IN  WHICH
HARDSHIP  HAS  BEEN  DETERMINED,  SHALL RESULT IN SUCH BENEFICIARY BEING
DECLARED IN DEFAULT AND NO LONGER ENROLLED IN THE COMPACT.
  4. A PARTICIPANT WHO HAS FULFILLED HIS OR HER PLEDGE SHALL BE PRESUMED
ELIGIBLE TO RECEIVE SERVICES AS A BENEFICIARY FOR A PERIOD OF SIXTY DAYS
FROM THE DATE OF  DETERMINATION.  IF  A  PARTICIPANT  DETERMINED  TO  BE
PRESUMPTIVELY  ELIGIBLE  TO RECEIVE THE COMPACT SUBSIDY AS A BENEFICIARY
IS SUBSEQUENTLY DETERMINED TO BE INELIGIBLE  FOR  SUCH  ASSISTANCE,  THE
COMMISSIONER  MAY  RECOUP  FROM  SUCH  INDIVIDUAL  ANY SUMS EXPENDED FOR
ASSISTANCE DURING THE PERIOD OF PRESUMED ELIGIBILITY.
  5. A PARTICIPANT WHO KNOWINGLY DEFAULTS ON PAYMENT OF THE PLEDGE, OR A
BENEFICIARY WHO KNOWINGLY DEFAULTS ON PAYMENT OF THE DIFFERENCE  BETWEEN
THE COMPACT RATE AND THE COMPACT SUBSIDY, AND WHO IS THEREFORE NO LONGER
ENROLLED  IN THE PROGRAM, SHALL NOT BE ELIGIBLE TO RECEIVE PROTECTION OF
ASSETS OR INCOME OTHERWISE AFFORDED TO  PARTICIPANTS  AND  BENEFICIARIES
UNDER  THE  COMPACT.  NOTHING CONTAINED IN THIS TITLE SHALL BE DEEMED TO
SHIELD OR OTHERWISE EXCUSE A BENEFICIARY OR A PARTICIPANT  FROM  PAYMENT
OF A DEBT LAWFULLY INCURRED TO A SERVICE PROVIDER.
  6. UPON RECOMMENDATION OF THE ADVISORY COMMITTEE, THE COMMISSIONER MAY
ESTABLISH  RULES, INCLUDING REQUIREMENTS FOR WRITTEN AGREEMENTS, GOVERN-
ING THE PAYMENT AND COLLECTION OF DEBT BY PARTICIPANTS AND BENEFICIARIES
TO SERVICE PROVIDERS AND TO THE PROGRAM MANAGEMENT  ENTITY  AS  WELL  AS
NOTIFICATION GUIDELINES TO THE BENEFICIARY, OR A PERSON OR ENTITY ACTING
ON BEHALF OF THE BENEFICIARY TO ENSURE THAT PAYMENTS MISSED IN ERROR CAN
BE CORRECTED WITHOUT PUNISHMENT TO THE BENEFICIARY.
  S  272.  APPEALS.  1. ANY PERSON OR AN INDIVIDUAL AUTHORIZED TO ACT ON
BEHALF OF ANY SUCH PERSON MAY APPEAL TO THE COMMISSIONER FROM  DECISIONS
OF THE PROGRAM MANAGEMENT ENTITY UPON GROUNDS SPECIFIED IN THIS SECTION.
ANY APPEAL PURSUANT TO THIS SECTION SHALL BE REQUESTED WITHIN SIXTY DAYS
AFTER THE DATE OF THE ACTION OR FAILURE TO ACT COMPLAINED OF.

S. 4064--B                         12

  2.  THE  COMMISSIONER SHALL SPECIFY THE GROUNDS AND THE FORUM FOR SUCH
APPEALS IN REGULATIONS.
  (A)  SUCH  GROUNDS  AND FORUMS SHALL INCLUDE PROVISION OF FAIR HEARING
FOR THE FOLLOWING AND SIMILAR ISSUES: (I) COMPUTATION OF  THE  VALUE  OF
ASSETS  OR  INCOME;  (II)  WHETHER  EXPENSES  ARE  ELIGIBLE EXPENSES FOR
PAYMENT OF THE PLEDGE, AND  WHETHER  THE  PLEDGE  WAS  FULFILLED;  (III)
AMOUNT  OF  PARTICIPATION  FEE  OR  CO-PAY; (IV) DENIAL OF PAYMENT FOR A
SERVICE PROVIDED TO A BENEFICIARY.
  (B) SUCH GROUNDS AND FORUMS SHALL ALSO  INCLUDE  PROVISION  FOR  THIRD
PARTY  REVIEW AND ARBITRATION FOR SUCH ISSUES AS: (I) THE ASSESSMENT AND
PLAN OF CARE; (II) PAYMENTS TO PROVIDERS; AND (III) QUALITY OF  PROVIDER
SERVICES.
  3.  DECISIONS  OF  THE  COMMISSIONER PURSUANT TO THIS SECTION SHALL BE
BINDING UPON THE PROGRAM MANAGEMENT  ENTITY.  SUCH  GROUNDS  FOR  APPEAL
SHALL  NOT  INCLUDE  DENIALS FOR ISSUES AND CIRCUMSTANCES RELATED TO THE
LANGUAGE, PROCESSING OR APPROVAL OF COVERAGE  UNDER  A  LONG  TERM  CARE
INSURANCE  POLICY WHICH ARE OTHERWISE THE SUBJECT OF EXTERNAL APPEALS OF
ADVERSE DETERMINATIONS OF HEALTH CARE PLANS  PURSUANT  TO  SECTIONS  TWO
HUNDRED  ONE, THREE HUNDRED ONE, ELEVEN HUNDRED NINE, THIRTY-TWO HUNDRED
ONE,  THIRTY-TWO  HUNDRED   SIXTEEN,   THIRTY-TWO   HUNDRED   SEVENTEEN,
THIRTY-TWO HUNDRED SEVENTEEN-A, THIRTY-TWO HUNDRED TWENTY-ONE, FORTY-TWO
HUNDRED  THIRTY-FIVE,  FORTY-THREE  HUNDRED  THREE,  FORTY-THREE HUNDRED
FOUR,  FORTY-THREE  HUNDRED  FIVE,   FORTY-THREE   HUNDRED   TWENTY-ONE,
FORTY-THREE  HUNDRED  TWENTY-TWO  AND  FORTY-THREE  HUNDRED TWENTY-FOUR,
ARTICLE FORTY-SEVEN AND ARTICLE FORTY-NINE  OF  THE  INSURANCE  LAW  AND
CHAPTER  FIVE HUNDRED EIGHTY-SIX OF THE LAWS OF NINETEEN HUNDRED NINETY-
EIGHT.
  4. ANY AGGRIEVED PARTY TO AN APPEAL, OTHER THAN THE PROGRAM MANAGEMENT
ENTITY, MAY APPLY FOR REVIEW AS PROVIDED IN ARTICLE SEVENTY-EIGHT OF THE
CIVIL PRACTICE LAW AND RULES.
  S 273. TREATMENT OF ASSETS. 1. A PARTICIPANT'S HOMESTEAD SHALL NOT  BE
DEEMED  A  COUNTABLE ASSET IF THE HOMESTEAD WAS PURCHASED MORE THAN FIVE
YEARS PRIOR TO THE DATE THAT AN INDIVIDUAL APPLIES TO BECOME  A  PARTIC-
IPANT  IN  THE  COMPACT. A HOMESTEAD PURCHASED WITHIN FIVE YEARS OF SUCH
DATE SHALL BE DEEMED A COUNTABLE  ASSET,  UNLESS  SUCH  HOMESTEAD  IS  A
REPLACEMENT  FOR  A HOMESTEAD SOLD WITHIN ONE YEAR PRIOR TO THE PURCHASE
DATE, IN WHICH CASE AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN  THE  SALE
PRICE  OF  THE OLD HOMESTEAD AND THE PURCHASE PRICE OF THE NEW HOMESTEAD
SHALL BE DEEMED A COUNTABLE ASSET. AS USED IN THIS SECTION,  "HOMESTEAD"
MEANS  THE  PRIMARY  RESIDENCE  OCCUPIED BY A BENEFICIARY OR PARTICIPANT
AND/OR MEMBERS OF HIS OR HER FAMILY.  FAMILY  MEMBERS  MAY  INCLUDE  THE
BENEFICIARY'S  OR  PARTICIPANT'S SPOUSE, MINOR CHILDREN, CERTIFIED BLIND
OR CERTIFIED DISABLED CHILDREN, A CARETAKER CHILD, AND  OTHER  DEPENDENT
RELATIVES.  HOMESTEAD SHALL BE DEEMED TO MEAN AND INCLUDE THE HOME, LAND
AND INTEGRAL PARTS SUCH AS GARAGES AND OUTBUILDINGS, AND MAY BE A CONDO-
MINIUM, COOPERATIVE APARTMENT OR MANUFACTURED HOME.  HOMESTEAD SHALL NOT
BE  DEEMED  TO  MEAN  AND  INCLUDE VACATION HOMES, SUMMER HOMES OR OTHER
PREMISES NOT USED AS A PRIMARY RESIDENCE. THE FOREGOING TO THE  CONTRARY
NOTWITHSTANDING, TO THE EXTENT THAT A HOMESTEAD PURCHASED MORE THAN FIVE
YEARS  PRIOR  TO THE DATE THAT AN INDIVIDUAL APPLIES TO BECOME A PARTIC-
IPANT IN THE COMPACT IS DEEMED A RESOURCE UNDER THE RULES OF  THE  PART-
NERSHIP FOR LONG-TERM CARE ESTABLISHED PURSUANT TO SECTION THREE HUNDRED
SIXTY-SEVEN-F  OF  THE  SOCIAL  SERVICES  LAW, IT SHALL ALSO BE DEEMED A
RESOURCE UNDER THE COMPACT.
  2. ANY OTHER PROVISION OF ANY OTHER  LAW  OR  OF  THIS  TITLE  TO  THE
CONTRARY  NOTWITHSTANDING, THE COMMISSIONER, ACTING ON RECOMMENDATION OF

S. 4064--B                         13

THE ADVISORY COMMITTEE, MAY EXEMPT CERTAIN INCOME AND  RESOURCES  OF  AN
INDIVIDUAL  AND OF THE INDIVIDUAL'S SPOUSE FROM INCLUSION AS A COUNTABLE
ASSET.
  3.  (A)  WITH  RESPECT  TO  ANNUITIES, (I) THE PRINCIPAL AMOUNT OF ANY
ANNUITY SHALL BE DEEMED A COUNTABLE ASSET IF SUCH ANNUITY  IN  PERMANENT
PAYOUT  STATUS WAS PURCHASED WITHIN FIVE YEARS OF THE DATE AN INDIVIDUAL
APPLIES TO BECOME  A  PARTICIPANT,  PROVIDED  HOWEVER  THAT  ANY  PAYOUT
AMOUNTS SHALL NOT BE TREATED AS INCOME FOR PURPOSES OF THE INCOME CALCU-
LATION;  (II)  THE PRINCIPAL AMOUNT OF ANY ANNUITY SHALL NOT BE DEEMED A
COUNTABLE ASSET IF A LEVEL PAYMENT SCHEDULE HAS BEEN IN FORCE FOR  THREE
YEARS  OR  MORE  PRIOR  TO  THE  DATE  AN INDIVIDUAL APPLIES TO BECOME A
PARTICIPANT, AND NEITHER THE INDIVIDUAL NOR  A  PERSON  ACTING  ON  SUCH
INDIVIDUAL'S  BEHALF  HAS  THE  ABILITY TO WITHDRAW AMOUNTS IN EXCESS OF
SCHEDULED PAYMENTS, PROVIDED HOWEVER  THAT  IN  SUCH  CASE,  ANY  PAYOUT
AMOUNTS  SHALL  BE  COUNTED  AS INCOME FOR PURPOSES OF THE INCOME CALCU-
LATION; AND (III) AN ANNUITY NOT IN PERMANENT  PAYOUT  STATUS  FOR  FIVE
YEARS PRIOR TO THE DATE AN INDIVIDUAL APPLIES TO BECOME A PARTICIPANT IN
THE COMPACT PROGRAM SHALL BE DEEMED A COUNTABLE ASSET.
  (B)  THE  VALUE  OF AN ASSET TRANSFERRED INTO AN IRREVOCABLE TRUST FOR
LESS THAN FULL CONSIDERATION WITHIN FIVE YEARS  PRIOR  TO  THE  DATE  OF
APPLICATION TO THE COMPACT PROGRAM SHALL BE DEEMED A COUNTABLE ASSET.
  (C)  PRE-PAID  FUNERALS  PURCHASED  FOR  AN  INDIVIDUAL  WHO BECOMES A
PARTICIPANT OR A BENEFICIARY, A SPOUSE OR FOR CHILDREN WITH DISABILITIES
SHALL NOT BE INCLUDED AS A COUNTABLE ASSET, IF MADE PRIOR TO THE DATE ON
WHICH THE PARTICIPANT FULFILLS THE PLEDGE AMOUNT.
  (D) THE VALUE OF ANY DEBTS, INCLUDING BUT NOT LIMITED  TO  OUTSTANDING
DEBT  ON  CREDIT  CARDS,  AUTO PAYMENTS, MONTHLY MORTGAGE PAYMENTS, HOME
EQUITY LOANS, REVERSE MORTGAGES AND ANY OTHER SUCH SIMILAR DEBT  INSTRU-
MENTS  SHALL  BE  DEDUCTED WHEN CALCULATING THE TOTAL VALUE OF COUNTABLE
ASSETS.
  (E) THE PRINCIPAL AMOUNT OF A MORTGAGE ON A  HOMESTEAD  SHALL  NOT  BE
DEDUCTED  IF  THE  HOMESTEAD  IS  NOT DEEMED A COUNTABLE ASSET, PROVIDED
HOWEVER THAT PAYMENTS MADE TO REDUCE  OR  ELIMINATE  ANY  SUCH  MORTGAGE
SHALL  BE DEDUCTED WHEN CALCULATING THE TOTAL VALUE OF COUNTABLE ASSETS.
IF THE HOMESTEAD IS DEEMED A COUNTABLE ASSET, THE  PRINCIPAL  AMOUNT  OF
THE  MORTGAGE  SHALL  BE  DEDUCTED  WHEN  CALCULATING THE TOTAL VALUE OF
COUNTABLE ASSETS.
  (F) IN ADDITION TO THE FOREGOING, THE FOLLOWING SHALL NOT  BE  CONSID-
ERED AS INCOME OR ASSETS:
  (I)  ANY GIFT OR GIFTS MADE BY AN INDIVIDUAL OR AN INDIVIDUAL'S SPOUSE
THAT TOTAL LESS THAN TWELVE THOUSAND DOLLARS IN ANY CALENDAR  YEAR.  THE
COMMISSIONER SHALL ANNUALLY ADJUST SUCH AMOUNT BY THE SAME PERCENTAGE AS
THE PERCENTAGE INCREASE IN THE FEDERAL CONSUMER PRICE INDEX;
  (II) EXPENDITURES TO AN EDUCATIONAL INSTITUTION OR MEDICAL FACILITY ON
BEHALF  OF  A  SPOUSE  OR  CHILD,  PROVIDED  HOWEVER THAT THESE SHALL BE
REASONABLE EXPENDITURES FOR THE PURPOSE OF MEDICAL TREATMENT  OR  EDUCA-
TION;
  (III) GIFTS THAT QUALIFY AS A CHARITABLE DEDUCTION ON THE INDIVIDUAL'S
FEDERAL INCOME TAX RETURN; AND
  (IV)  THE  AMOUNT  RECEIVED FROM A REVERSE MORTGAGE IF EXPENDED WITHIN
THIRTY DAYS OF THE TIME IN WHICH RECEIVED.  AN  AMOUNT  FROM  A  REVERSE
MORTGAGE  THAT  IS  HELD FOR LONGER THAN SUCH THIRTY DAY PERIOD SHALL BE
CONSIDERED AS COUNTABLE INCOME, UNLESS USED FOR  THE  PURCHASE  OF  LONG
TERM CARE SERVICES AS DEFINED IN THIS TITLE.

S. 4064--B                         14

  (G)  THE  COMMISSIONER,  AFTER CONSULTING WITH THE ADVISORY COMMITTEE,
SHALL ESTABLISH CRITERIA TO DETERMINE  WHETHER  EXPENDITURES  AND  GIFTS
MADE PURSUANT TO THIS SUBDIVISION ARE DISALLOWABLE TRANSACTIONS.
  S  274.  SPECIAL  PROVISIONS REGARDING COUPLES. 1. THE REQUIREMENTS OF
THIS TITLE CONCERNING DISCLOSURE OF ASSETS SHALL BE DEEMED TO  MEAN  AND
INCLUDE  DISCLOSURE  OF  ALL  ASSETS,  INCLUDING ALL ASSETS OF A MARRIED
COUPLE, WITHOUT DISTINCTION AS  TO  OWNERSHIP  BY  OR  BETWEEN  SPOUSES.
NOTWITHSTANDING  THE FOREGOING, IF THERE IS A PRE OR POST-NUPTIAL AGREE-
MENT WHICH HAS BEEN EFFECTIVE THREE OR MORE YEARS PRIOR TO THE  DATE  OF
ENROLLMENT IN THE COMPACT PROGRAM, THE VALUE OF THE ASSETS OF THE SPOUSE
NOT  ENROLLED  IN  THE COMPACT SHALL NOT BE DEEMED A COUNTABLE ASSET AND
SHALL NOT REQUIRE DISCLOSURE TO THE COMMISSIONER OR  PROGRAM  MANAGEMENT
ENTITY.
  2.  IF  ONE  SPOUSE  ENROLLS IN THE COMPACT PROGRAM AND THE OTHER DOES
NOT, AND
  (A) THE ENROLLING SPOUSE BECOMES A BENEFICIARY AFTER MEETING THE MAXI-
MUM PLEDGE AMOUNT, THE COUPLE'S ASSETS SHALL BE  EXEMPT  FROM  CONSIDER-
ATION AS A COUNTABLE ASSET.
  (B)  THE  ENROLLING  SPOUSE  BECOMES  A  PARTICIPANT PLEDGING A DOLLAR
PLEDGE AMOUNT, ONE-HALF OF THE TOTAL VALUE OF THE COUPLE'S ASSETS  SHALL
BE  EXCLUDED  FROM  CONSIDERATION  AS A COUNTABLE ASSET BEFORE ANY OTHER
CALCULATIONS AS TO THE AMOUNT REQUIRED TO MEET A DOLLAR PLEDGE AMOUNT.
  (C) THE NON-ENROLLING SPOUSE SUBSEQUENTLY APPLIES TO BECOME A  PARTIC-
IPANT  IN  THE  COMPACT,  SUCH  INDIVIDUAL MAY PLEDGE EITHER THE MAXIMUM
PLEDGE AMOUNT OR THE DOLLAR PLEDGE AMOUNT. FOR PURPOSES  OF  DETERMINING
THE  DOLLAR  PLEDGE  AMOUNT  IN  SUCH CASE, THE COUNTABLE ASSETS OF SUCH
INDIVIDUAL SHALL MEAN, BEFORE ANY OTHER CALCULATIONS AS  TO  THE  AMOUNT
REQUIRED  TO  MEET  A  DOLLAR  PLEDGE  AMOUNT,  AN AMOUNT EQUAL TO FIFTY
PERCENT OF THE REMAINING ASSETS OF THE  COUPLE  LESS  ANY  AMOUNT  STILL
REQUIRED TO MEET THE PLEDGE AMOUNT OF THE INITIAL ENROLLING SPOUSE.
  3.  A  TRANSFER OR BEQUEST OF A PROTECTED AMOUNT SHALL NOT BE DEEMED A
COUNTABLE ASSET OF THE NON-ENROLLING SPOUSE, NOR SHALL INCOME OR  GROWTH
ON  SUCH INCOME BE COUNTED IF SUCH INCOME WAS PART OF A PROTECTED AMOUNT
AND HAS BEEN KEPT IN A SEPARATE ACCOUNT. FOR PURPOSES OF THIS SECTION, A
PROTECTED AMOUNT IS THE AMOUNT REMAINING AFTER A PLEDGE HAS BEEN MET.
  4. A SURVIVING SPOUSE WHO APPLIES TO BECOME A PARTICIPANT, OR WHO IS A
PARTICIPANT OR BENEFICIARY IN THE COMPACT PROGRAM SHALL NOT BE  REQUIRED
TO  EXERCISE  A  RIGHT OF ELECTION UNDER SECTION 5-1.1-A OF THE ESTATES,
POWERS AND TRUSTS LAW.
  S 275. ADVISORY COMMITTEE. 1. THE COMMISSIONER SHALL CONVENE AN  ADVI-
SORY  COMMITTEE  TO THE COMPACT PROGRAM, CONSISTING OF ELEVEN PERSONS AS
FOLLOWS: TWO FROM THE ELDER LAW SECTION OF THE NEW YORK STATE BAR  ASSO-
CIATION  TO INCLUDE THE CHAIR OF SUCH SECTION OR A DESIGNEE APPOINTED BY
THE CHAIR WHO SHALL SERVE EX OFFICIO; TWO FROM STATEWIDE ADVOCACY GROUPS
PRIMARILY CONCERNED WITH SENIOR ISSUES; FOUR FROM PROVIDERS OF SERVICES,
INCLUDING TWO REPRESENTING INSTITUTIONAL PROVIDERS OF SERVICES  AND  TWO
REPRESENTING NON-INSTITUTIONAL PROVIDERS; TWO FROM INSURERS SELLING LONG
TERM CARE INSURANCE IN THE STATE WHO SHALL BE PERSONS WITH AT LEAST FIVE
YEARS EXPERIENCE IN THE DEVELOPMENT OF LONG TERM CARE INSURANCE PRODUCTS
AND  WHO  ARE OR WHO SHALL HAVE BEEN, SO FAR AS SHALL BE PRACTICABLE, IN
EXECUTIVE POSITIONS; AND ONE WITH AT LEAST FIVE YEARS ACTUARIAL  EXPERI-
ENCE  IN  LONG  TERM  CARE  INSURANCE  MATTERS. MEMBERS SHALL RECEIVE NO
COMPENSATION FOR THEIR SERVICES, BUT SHALL BE ALLOWED THEIR  ACTUAL  AND
NECESSARY EXPENSES INCURRED IN PERFORMANCE OF THEIR DUTIES HEREUNDER.
  2.  THE PURPOSE OF SUCH ADVISORY COMMITTEE SHALL BE TO PROVIDE ADVICE,
CONSULTATION AND  RECOMMENDATIONS  ON  SPECIFIC  ISSUES  CONCERNING  THE

S. 4064--B                         15

COMPACT PROGRAM AND ON THE FURTHER DEVELOPMENT OF THE PROGRAM, INCLUDING
BUT  NOT  LIMITED  TO  SUCH ISSUES AS THE DEFINITION OF HARDSHIP AND THE
TREATMENT OF PERSONS EXPERIENCING HARDSHIP UNDER THE COMPACT, THE TREAT-
MENT  OF  ASSETS  OF PERSONS WHO ARE LIVING SEPARATELY BUT NOT DIVORCED,
LOSS OF INCOME OR ASSETS AFTER A PARTICIPANT  HAS  AGREED  TO  A  PLEDGE
AMOUNT, SPOUSAL PROTECTIONS, AND ANY OTHER ISSUES WHICH THE COMMISSIONER
OR  THE  ADVISORY  COMMITTEE  SHALL DEEM NECESSARY OR APPROPRIATE TO THE
OPERATION OF THE COMPACT.  THE  ADVISORY  COMMITTEE  SHALL  ADDITIONALLY
CONSIDER  ISSUES  RELATED  TO  CONTINUITY  OF  CARE BY PROVIDERS AND ANY
ISSUES RELATED TO SHIFTING OR FAILING TO PROVIDE  SERVICES  OR  DROPPING
PARTICIPANTS FROM COVERAGE WHEN THEY BECOME BENEFICIARIES. IN PROMULGAT-
ING  REGULATIONS  PURSUANT TO THIS TITLE, THE COMMISSIONER SHALL CONSULT
THE ADVISORY COMMITTEE, PROVIDED HOWEVER THAT FAILURE TO RESPOND  TIMELY
BY  THE ADVISORY COMMITTEE SHALL NOT BE DEEMED A DEFECT IN THE PROMULGA-
TION OF SUCH REGULATIONS. THE ADVISORY COMMITTEE MAY REQUEST  AND  SHALL
RECEIVE  FROM  THE COMMISSIONER SUCH DATA AND ANALYSIS, OR MAY MAKE SUCH
ANALYSIS OF SUCH DATA, AS SHALL ENABLE IT TO FULFILL ITS MISSION  PURSU-
ANT TO THIS TITLE.
  3.  THE COMMITTEE SHALL ANNUALLY, OR MORE OFTEN IF THE COMMITTEE SHALL
SO DECIDE, REVIEW THE METHODOLOGY FOR SETTING THE AMOUNT OF THE  COMPACT
SUBSIDY  AND  SHALL  MAKE SUCH RECOMMENDATIONS FOR CHANGE TO THE COMMIS-
SIONER AS IT SHALL DEEM APPROPRIATE AND IN KEEPING WITH THE  SPIRIT  AND
INTENT OF THIS TITLE.
  4.  THE COMMITTEE SHALL ANNUALLY, OR MORE OFTEN IF THE COMMITTEE SHALL
SO DECIDE, REVIEW THE CONDUCT OF PROVIDERS OF  SERVICE  TO  PARTICIPANTS
AND  BENEFICIARIES  AND MAY RECOMMEND TO THE COMMISSIONER THE ESTABLISH-
MENT OF REQUIREMENTS CONCERNING SUCH CONDUCT TO PREVENT ABUSES.  IF  THE
COMMITTEE  SHALL  MAKE  SUCH  RECOMMENDATION, THE COMMISSIONER IS HEREBY
AUTHORIZED TO AND SHALL PRESCRIBE SUCH REQUIREMENTS BY  RULE  AND  REGU-
LATION.
  5.  IN  ADDITION  TO  THE  ADVISORY  COMMITTEE, THE COMMISSIONER AFTER
CONSULTATION WITH THE DIRECTOR SHALL ESTABLISH  A  TEN  MEMBER  CONSUMER
ISSUES  AND  INTEGRITY  COMMITTEE, WHOSE PURPOSE SHALL BE TO EXAMINE THE
IMPLEMENTATION AND EFFECTIVENESS OF THE COMPACT WITH RESPECT TO CONSUMER
ISSUES.  MEMBERS OF THE COMMITTEE SHALL INCLUDE PERSONS  WITH  DISABILI-
TIES,  SENIORS, ADVOCATES FOR PERSONS WITH DISABILITIES AND SENIORS, AND
INDIVIDUALS FROM THE ACADEMIC COMMUNITY WITH EXPERTISE IN LONG TERM CARE
POLICY, HEALTH POLICY AND SOCIAL POLICY.  THE  COMMITTEE  SHALL  ADDRESS
ISSUES  REFERRED TO IT BY THE COMMISSIONER OR BY THE ADVISORY COMMITTEE,
AND MAY ENGAGE IN STUDIES OF ISSUES AT ITS OWN DISCRETION.  THE  COMMIS-
SIONER  SHALL  DESIGNATE  A CHAIR FOR THE COMMITTEE. THE CONSUMER ISSUES
AND INTEGRITY COMMITTEE SHALL MEET IN A PUBLIC  SETTING  AT  LEAST  FOUR
TIMES  PER YEAR AND AT SUCH OTHER TIMES AS THE COMMISSIONER OR THE CHAIR
OF THE COMMITTEE SHALL DEEM APPROPRIATE.
  S 276. REQUIREMENT FOR CONFIDENTIALITY. EXCEPT AS  OTHERWISE  PROVIDED
IN  THIS  SECTION,  ALL  INFORMATION GATHERED FROM AN INDIVIDUAL SEEKING
ENROLLMENT IN THE  COMPACT  PROGRAM  SHALL  BE  CONFIDENTIAL,  WITH  THE
FOLLOWING EXCEPTIONS:
  1.  REQUESTS  FOR  INFORMATION  BASED UPON LEGITIMATE CRIMINAL JUSTICE
PURPOSES, AS SUCH TERM SHALL BE DEFINED IN REGULATION BY THE COMMISSION-
ER;
  2. JUDICIAL SUBPOENAS;
  3. REQUESTS FOR INFORMATION BY THE VICTIM OR CLAIMANT OR  HIS  OR  HER
AUTHORIZED REPRESENTATIVE; AND
  4.  FOR  PURPOSES  NECESSARY AND PROPER FOR THE ADMINISTRATION OF THIS
TITLE.

S. 4064--B                         16

  ANY PERSON WHO KNOWINGLY AND INTENTIONALLY PERMITS THE RELEASE OF  ANY
SUCH DATA AND INFORMATION NOT PERMITTED BY THIS TITLE SHALL BE GUILTY OF
A CLASS A MISDEMEANOR. THE COMMISSIONER SHALL PROMULGATE RULES AND REGU-
LATIONS  INSURING  THE  TIMELINESS,  COMPLETENESS,  CONFIDENTIALITY  AND
DISPOSITION OF SUCH DATA AND INFORMATION.
  S  277.  EDUCATION  AND INFORMATION. THE PROGRAM MANAGEMENT ENTITY, IN
CONSULTATION WITH THE SUPERINTENDENT OF INSURANCE, THE DIRECTOR AND  THE
COMMISSIONER,  IS  HEREBY AUTHORIZED AND DIRECTED, WITHIN AMOUNTS APPRO-
PRIATED THEREFOR  AND  OTHER  FUNDS  MADE  AVAILABLE  PURSUANT  TO  THIS
SECTION,  TO  ESTABLISH AN EDUCATION AND OUTREACH PROGRAM CONCERNING THE
COMPACT PROGRAM OR TO COORDINATE SUCH  EDUCATION  AND  OUTREACH  PROGRAM
WITH ANY SIMILAR PUBLICLY SPONSORED PROGRAM FOR THE PURPOSE OF INFORMING
AND  EDUCATING  THE GENERAL PUBLIC OF THE AVAILABILITY AND ADVANTAGES OF
THE COMPACT PROGRAM BY MEANS INCLUDING BUT NOT LIMITED TO THE FOLLOWING:
EDUCATIONAL AND INFORMATIONAL MATERIALS IN PRINT, AUDIO,  VISUAL,  ELEC-
TRONIC  OR  OTHER  MEDIA;  PUBLIC SERVICE ANNOUNCEMENTS, ADVERTISEMENTS,
MEDIA CAMPAIGNS, WORKSHOPS, MASS MAILINGS, CONFERENCES OR PRESENTATIONS;
ESTABLISHMENT OF A TOLL-FREE TELEPHONE HOTLINE AND  ELECTRONIC  SERVICES
TO  PROVIDE  INFORMATION; AND MEETINGS CONDUCTED BY ARRANGEMENT WITH THE
COMMISSIONER AND THE DIRECTOR WITH ESTATE PLANNERS, ELDER LAW  ATTORNEYS
AND  OTHER  PROFESSIONALS CONCERNING LONG TERM CARE INSURANCE, INCLUDING
THOSE POLICIES AVAILABLE THROUGH THE  PARTNERSHIP  FOR  LONG  TERM  CARE
PROGRAM.  IN  EXERCISING  ANY  POWERS  UNDER  THIS  SECTION, THE PROGRAM
MANAGEMENT ENTITY MAY CONSULT WITH APPROPRIATE AGENCIES,  ORGANIZATIONS,
CONSUMERS  AND  PROVIDERS  OF  LONG TERM CARE INSURANCE OR ORGANIZATIONS
REPRESENTING THEM. IN ADDITION TO STATE FUNDS APPROPRIATED FOR  PROGRAMS
UNDER THIS SECTION, THE COMMISSIONER AND THE DIRECTOR MAY ACCEPT FUNDING
FROM  PUBLIC  SOURCES  FOR PROGRAMS UNDER THIS SECTION AND MAY UNDERTAKE
JOINT OR COOPERATIVE PROGRAMS WITH  OTHER  PUBLIC  AGENCIES  OR  PRIVATE
NOT-FOR-PROFIT  CORPORATIONS  WHICH ARE NEITHER PROVIDERS NOR REGULATORS
OF LONG TERM CARE INSURANCE OR AFFILIATES OR UNITS OF SUCH  AGENCIES  OR
CORPORATIONS.
  S  2.  The  insurance law is amended by adding a new section 3229-a to
read as follows:
  S 3229-A. LONG TERM CARE INSURANCE PLANS QUALIFYING TO PROVIDE  COVER-
AGE  UNDER  THE  NEW  YORK  STATE  COMPACT FOR LONG TERM CARE. ANY OTHER
PROVISION OF ANY OTHER LAW TO  THE  CONTRARY  NOTWITHSTANDING,  ANY  TAX
QUALIFIED  LONG  TERM  CARE INSURANCE PLANS MAY BE USED TO MAKE PAYMENTS
FOR SERVICES PROVIDED TO  ALLOW  PARTICIPANTS  TO  MEET  PLEDGE  AMOUNTS
PURSUANT TO THE NEW YORK STATE COMPACT FOR LONG TERM CARE PROGRAM ESTAB-
LISHED  PURSUANT  TO  TITLE  FOUR  OF  ARTICLE TWO OF THE ELDER LAW. THE
SUPERINTENDENT SHALL ADDITIONALLY APPROVE INSURANCE PLANS  THAT  PROVIDE
OR  INCLUDE  TOTAL BENEFITS IN AN AMOUNT WHICH WILL ALLOW THE INDIVIDUAL
TO MEET THE  PARTICIPATION  FEE  AND  THE  CO-PAY  REQUIREMENTS  OF  THE
COMPACT.  FOR PURPOSES OF THIS SECTION, THE TERM "TAX QUALIFIED" HAS THE
SAME MEANING AS UNDER SECTION 7702B(B) OF THE INTERNAL REVENUE  CODE  OF
1986, AS AMENDED.
  S 3. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect,  impair  or  invalidate  the
remainder thereof, but shall be confined in its operation to the clause,
sentence,  paragraph,  section  or part thereof directly involved in the
controversy in which such judgment shall have been rendered.
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have become a law.