A:
This law does not have any affect on DDD clients’
responsibility to contribute to the cost of their daily
care. If, however, a person is DDD eligible but also was
hospitalized at a State or County psychiatric facility,
no lien may be placed against that person for the cost of
care at the psychiatric facility.
Q:
If the lien has been removed, why do we have continuing
debt?
A:
There are some things to be aware of with respect to the
State’s interpretation of this new law. First, although
the lien against an individual is now removed, certain individual’s
debt for the cost of care will still remain. In practical
terms this means that the lien will be removed but the obligation
to repay the debt remains. In order to prove that the lien
has been removed, you will need to obtain a “discharge
document” from the state.
Q:
What if my family member comes into money?
A:
With regard to continuing debt, and in cases where a client
comes into money, there are a few options to resolve a debt
with the State. One such option is to propose a compromise,
indicating what you would be willing to pay the State for
forgiveness of the institutional debt and a complete release
of any pre-existing lien. Often, as part of the compromise
process, the creation of a special needs trust will be approved
to deposit a portion of the assets into for the future use
of the person with the disability.
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