Human services: medical services; certain personal service agreements; allow. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 112l.
If passed, SB 739 will affect how the state’s Department of Health and Human Services (DHHS) evaluates personal service agreements. The bill outlines that the DHHS will not default to categorizing services provided under these agreements by family members or household members as gratuitous, thereby waiving the divestment penalty typically associated with asset transfer for medical assistance eligibility. This change is anticipated to facilitate smoother access to necessary medical assistance for individuals requiring in-home services without the fear of losing their assets.
Senate Bill 739 seeks to amend the Social Welfare Act of 1939 by introducing regulations surrounding personal services agreements in Michigan. The bill defines two types of agreements: qualified personal services agreements and affirmed personal services agreements. Both of these agreements involve arrangements between individuals or their authorized representatives and members of their household or family for the provision of services, such as household maintenance, meal preparation, and personal care. Payments for these services, provided they meet certain criteria, are not considered divestments of assets, which can impact individuals seeking medical assistance under state programs.
While proponents argue that this legislation promotes greater financial flexibility for families caring for their loved ones, critics may express concerns about potential abuse of the system. They may argue that the lack of stringent regulations surrounding personal services agreements could lead to fraudulent claims regarding services rendered or valuations of market rates. Thus, the bill could stimulate debate regarding appropriate oversight of personal service arrangements to prevent potential exploitation in circumstances where individuals are vulnerable.