Bill would change 'spenddown' limit before Medical Assistance kicks in

Rebecca Preston of Hopkins wanted to look into the eyes of the representatives she testified before Thursday, but couldn’t due to a traumatic brain injury.

She was injured when a drunk driver T-boned her car more than a decade ago, Preston explained to the House Health and Human Services Reform Committee. She lives on her own with some help, but struggles to make ends meet because of policies that require her to spend nearly 30 percent of her Social Security Disability Insurance income before she can receive state Medical Assistance.

Currently, people who are blind, disabled, or are seniors and receive any income above the federal poverty line must pay for their own medical expenses until they are 20 percent below that threshold.

Rep. Nick Zerwas

HF225 would change the required “spenddown” limit so Medical Assistance would kick in at the federal poverty line. Sponsored by Rep. Nick Zerwas (R-Elk River), the bill was approved and referred to the House Health and Human Services Finance Committee. Its companion, SF250, sponsored by Sen. Paul Utke (R-Park Rapids), awaits action by the Senate Human Services Reform Finance and Policy Committee.

“The goal … is to change Medical Assistance policy so that people … can keep more of their own income,” Zerwas said. “Every month you have to spend down to $792 a month and then, only then, can you start trying to pay for the things you need to live. … It’s really heartbreaking public policy we have,”

In addition to increasing the limit, the bill would protect more of an individual’s assets. Although the “spenddown” limit was increased by 5 percent in 2015, assets were not addressed at the time, Zerwas said.

“The state is the one that’s actually stopping me and all the other disabled people from being able to live on our own,” testified Rik Seiler. He received a traumatic brain injury when struck by a car while assisting a 19-year-old after witnessing her car crash.

The change to spenddown limits is not included in Gov. Mark Dayton’s proposed biennial budget. Zerwas urged the committee not to make the issue partisan.

Rep. Peggy Flanagan (DFL-St. Louis Park) noted that bills adjusting spenddown limits had been proposed by both Republicans and Democrats in the past.

“It feels like I’m being penalized for working hard my whole life and paying into Social Security,” Preston said. “It makes no sense that I’m expected to live below the poverty level to get the help I need to stay independent.”