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 non-qualified agreements are also exempt from divestment penalties, based on the individual's intent and purpose for asset transfer.

The bill further clarifies the definitions of key terms such as "personal services agreement," "qualified personal services agreement," and "affirmed personal services agreement." It specifies the requirements for these agreements, including the necessity for written documentation, descriptions of services, and payment conditions. The Department of Health and Human Services is instructed not to presume that services provided under these agreements are gratuitous, thereby protecting individuals from divestment penalties when they comply with the outlined criteria.

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