On February 24, Arcare served as an expert on pooled trusts in front of the Iowa Legislature. Our testimony was in support of a new law that would basically negate Section 633C.2 of the existing Iowa law regulating medical assistance trusts.
633C.2 Disposition of medical assistance special needs trusts.
Regardless of the terms of a medical assistance special needs trust, any income received or asset added to the trust during a one-month period shall be expended as provided for medical assistance income trusts under section 633C.3, on a monthly basis, during the life of the beneficiary. Any increase in income or principal retained in the trust from a previous month may be expended, during the life of the beneficiary, only for reasonable and necessary expenses of the trust, not to exceed ten dollars per month without court approval, for special needs of the beneficiary attributable to the beneficiary’s disability and approved by the district court, for medical care or services that would otherwise be covered by medical assistance under chapter 249A, or to reimburse the state for medical assistance paid on behalf of the beneficiary.
This restrictive clause hinders persons with disability to benefit from distributions currently allowed through special needs trusts by federal regulation.
To view the complete testimony, click here.