The bill amends the Social Welfare Act by adding Section 112l, which establishes guidelines for personal services agreements between individuals or their legally authorized representatives and service providers, including household members and relatives. It introduces two types of agreements: "qualified personal services agreements" and "affirmed personal services agreements." Payments made under these agreements are not considered divestments, provided they are at fair market value. Additionally, the bill outlines criteria for determining whether payments under personal services agreements are exempt from divestment penalties, emphasizing that the Department of Health and Human Services cannot presume these services are gratuitous.

The bill defines key terms such as "personal services agreement," "qualified personal services agreement," and "affirmed personal services agreement," detailing the requirements for each type. For instance, a qualified personal services agreement must be in writing, signed, and dated before services are rendered, while an affirmed personal services agreement can be oral or written but must also meet specific criteria. The legislation aims to clarify the treatment of payments for personal services in the context of medical assistance eligibility, ensuring that individuals can receive necessary support without facing penalties for asset transfers.

Statutes affected:
Senate Introduced Bill: 400.1, 400.119
As Passed by the Senate: 400.1, 400.119