Bill > HB5405

This bill amends Michigan's social welfare act to establish clear guidelines for personal services agreements (PSAs) in the context of medical assistance programs. The bill defines two types of personal services agreements: "qualified" and "affirmed" PSAs, which allow individuals or their legal representatives to enter into service agreements with household members, family, relatives, or other persons for various supportive services like home maintenance, meal preparation, transportation, and assistance with daily living activities. Under this legislation, payments made through these agreements will not be considered "divestments" (improper transfer of resources) if they meet specific criteria, such as being at or below fair market value and having documented terms. The bill requires that PSAs describe the type, frequency, and duration of services, and allows payments to be made before, during, or after services are rendered. Additionally, the department of health and human services is prohibited from presuming that services provided under these agreements are gratuitous, and individuals can establish that asset transfers were made for purposes other than qualifying for medical assistance. This bill aims to provide more flexibility and clarity for individuals seeking to arrange personal care services while maintaining eligibility for medical assistance programs.

Health and Social Services

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5405