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NOVEMBER DRA UPDATE-Indiana Rules Implementing the Federal Deficit Reduction Act Delayed, May Be Revised

Severns & Stinson continues to work with elder law colleagues and other senior rights organizations in advocating the withdrawal or revision of the Indiana Family and Social Services Administration’s (FSSA) current proposed rules punitively implementing the Federal Deficit Reduction Act of 2005 (DRA). These rules which seek to retroactively penalize ordinary gift transactions, certain business transactions, and family caregivers, among other provisions, were first published by the FSSA
in August.

FSSA held a hearing for public comments on September 19, 2008. Scott Severns and Jeff Stinson attended the hearing. Mr. Severns, along with several other elder law attorneys testified as to the punitive effect of these rules. Representatives from several senior rights organizations and nursing homes testified in opposition to the rules.

FSSA has since delayed implementation of its proposed rules until it can properly review all oral and written comments submitted on the rules.

Recently, Scott Severns assisted with the preparation of comments and attended a meeting of the Select Joint Commission on Medicaid Oversight of the Indiana General Assembly on October 22, 2008. Keith Huffman, an elder law attorney from Bluffton, Indiana and current President of the Indiana Chapter of the National Academy of Elder Law Attorneys, testified as to the harsh effect these rules will have on senior and disabled Hoosiers. Mitch Roob, Secretary of FSSA, also testified at the hearing. He stated that the savings from the implementation of DRA are minimal and that it is not one of his favorite laws. Further, Roob testified that the agency is open to declaring an exception for small gifts to family and charities, open to guidance on Personal Services agreements, and willing to consider how much flexibility the State may have in the timing of the changes. Chairperson Crawford ended the hearing with a call for laws passed by the General Assembly to implement the DRA, rather than agency rules.

Although the effective date in the proposed rules is December 1, 2008, FSSA has indicated that the effective date of the rules will not be until sometime in 2009. Severns Associates will continue to work with its elder law colleagues and a coalition of other groups representing the interests of senior and disabled Hoosiers in advocating for a common sense DRA law or rule without the significant punitive provisions contained in the proposed rules. Severns & Stinson continues to seek the support of its clients and friends to join it in its effort to bring common sense rules to Indiana. We ask that you contact your legislators and express your support for changes to the current proposed rules.

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Information and articles from our website are presented as a public service by Severns & Stinson. We help our clients protect their assets and their rights to health care and long-term care. This article is general in nature and is not to be taken as legal advice to any particular person. Consult an attorney for specific legal advice for your circumstance.