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 gratuitous, thereby protecting individuals from divestment penalties when applying for medical assistance.

The bill defines key terms related to personal services agreements, including the requirements for both qualified and affirmed agreements, such as the necessity for written documentation, descriptions of services, and payment conditions. It also clarifies that the Department of Health and Human Services cannot presume that services provided under these agreements are gratuitous, thus ensuring that individuals are not unfairly penalized when seeking assistance. Overall, the legislation aims to facilitate access to necessary services for individuals while maintaining compliance with medical assistance eligibility requirements.

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