KRS 205.6322: Cabinet to seek to prohibit sheltering of assets in long-term-care cases.

The Cabinet for Health and Family Services shall seek to prohibit the sheltering of assets

in medical assistance long-term-care cases by promulgation of administrative regulations,

pursuant to KRS Chapter 13A, that establish the following:

(1) Consideration of assets placed in Medicaid -qualifying trusts as a prohibited transfer

of resources, to the extent prohibited by federal law;

(2) Revision of Medicaid policy to provide that assets funding the purchase of an

annuity shall be treated as a transfer of res ources unless the annuity is actuarially

sound as defined in administrative regulations promulgated by the cabinet pursuant

to KRS Chapter 13A;

(3) Revision of Medicaid policy to treat income -producing property as an available

resource to the extent allowed by federal law;

(4) Review of Medicaid eligibility procedures and operation to improve eligibility

verification and detection of fraud and abuse; and

(5) Review of the feasibility of instituting a photographic identification card, possibly

in conjunction with other entitlement programs, to reduce fraud and abuse through

misuse of Medicaid identification cards.