MaineCare Rule #306A - Mortuary Trust Allowance Changes

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The adopted rule updated the MaineCare Eligibility Manual, Part 16, Section 4.6 consistent with amendments made by Resolves 2023, Ch. 34, Resolve to Update Allowable Limits on Mortuary Trusts for the Purposes of MaineCare Eligibility.

The adopted rule updated Section 4.6(A)(2) to “Prepaid burial contracts (mortuary trusts) established on or after March 1, 2006 but prior to April 1, 2024 are excluded as long as either the contract is less than or equal to the statewide average for burial and funeral costs of $12,000. If the contract is for more than $12,000 then the estate of the Medicaid recipient must be named the beneficiary of any funds remaining after payment of funeral and burial charges.”

The adopted rule updated Section 4.6(A)(3) as “Prepaid burial contracts (mortuary trusts) established on or after April 1, 2024, that are irrevocable, are excluded so long as either the contract is less than or equal to the statewide average for burial and funeral costs of $18,000. If the contract is for more than the excluded amount, then the estate of the Medicaid recipient must be named the beneficiary of any funds remaining after payment of funeral and burial charges. Effective January 1, 2025, the excluded contract amount will increase annually, by the same percentage as the percentage increase of the Consumer Price Index for the preceding year. The Consumer Price Index is updated periodically in the Federal Register by the U.S. Department of Labor under the authority of 49 U.S.C. § 33105(c). The Consumer Price Index is found at https://www.bls.gov/cpi. To calculate the increased excluded contract amount, the Department shall multiply the current excluded amount by the percentage increase of the Consumer Price Index, for the preceding year, and then add that amount to the current excluded contract amount, with effective dates of January 1, and posted online at https://www.maine.gov/dhhs/ofi/programs-services/health-care-assistance.

The adopted rule changes are effective retroactive to April 1, 2024. Retroactive rulemaking is permissible under 22 M.R.S. § 42(8) as these updates provide a benefit to recipients and applicants.

In addition, the adopted rule corrected a typographical error in Section 4.25 to “For settlements associated with the replacement of an excluded asset, see Section 4.43 of this Part.”

This rule will not have an adverse impact on municipalities or small businesses.

Statutory Authority: 22 M.R.S. §§ 42(1) and (8); 3173; 3174-AA

Effective Date: August 18, 2024

Adopted

Office: Office for Family Independence

Routine technical

Email: Adam.Hooper@maine.gov

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