AB282,2,52 49.45 (17m) Exemption from third-party liability. The department shall
3request and implement any waiver of federal Medicaid laws or state Medical
4Assistance plan amendment necessary to exempt from third-party liability for
5payments under Medical Assistance the accounts under s. 71.10 (10).

AB282,2,97 49.475 (1) (f) (intro.) "Third party" means an entity that by statute, rule, or
8contract is responsible for payment of a claim for a health care item or service, except
9an account under s. 71.10 (10). "Third party" includes all of the following:

AB282,3,411 71.05 (6) (a) 25. Except as provided in subd. 26., any accumulated interest,
12dividends, or other gain that accrues from an account described under s. 71.10 (10)

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1during the taxable year in which a withdrawal occurs from such an account if any
2amount of the money or other assets in the account is withdrawn by, or at the
3direction of, a sponsor or beneficiary for any reason other than the payment of health
4care expenses, as defined in s. 71.10 (10) (a) 3., for the account beneficiary.

AB282,3,86 71.05 (6) (a) 26. Upon the termination of an account under s. 71.10 (10) (d), any
7amount in the account that is returned to a sponsor, as defined in s. 71.10 (10) (a) 4.,
8or that passes to the estate of a beneficiary, as defined in s. 71.10 (10) (a) 1.

AB282,3,1310 71.05 (6) (b) 48. An amount of up to $2,000 each year for each beneficiary, up
11to a total deposit of $4,000 each year, that is deposited by a sponsor into an account
12described under s. 71.10 (10), and any interest, dividends, or other gain that accrues
13in the account if the interest, dividends, or other gain is redeposited into the account.

AB282,3,1815 71.07 (5) (a) 9. The amount claimed as a deduction for unreimbursed medical
16expenses under section 213 (a) of the Internal Revenue Code to the extent that the
17funds used to pay for the unreimbursed expenses for which the deduction was
18claimed were withdrawn from an account described under s. 71.10 (10).

AB282,3,2120 71.10 (4) (k) Any amount of money or other assets computed under s. 71.83 (1)
21(ch).

AB282,3,2423 71.10 (10) Parental assistance health care expenses. (a) Definitions. In this
24subsection:

AB282,4,2

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11. "Beneficiary" means a parent of a sponsor for whom an account is established
2under this section.

AB282,4,53 2. "Financial institution" means any bank, savings bank, savings and loan
4association, or credit union that is authorized to do business under state or federal
5laws relating to financial institutions.

AB282,4,76 3. "Health care expenses" means expenses incurred by a beneficiary for any of
7the following:

AB282,4,88 a. Medical or dental care expenses.

AB282,4,99 b. Prescription drugs.

AB282,4,1210 c. Care that is provided to a beneficiary in the beneficiary's home or in
11institutional or community-based settings and that is convalescent or custodial care
12or care for a chronic condition or terminal illness.

AB282,4,1413 4. "Sponsor" means an adult child who establishes an account under this
14subsection.

AB282,4,1915 (b) Establishment of account. A sponsor may establish an account for health
16care expenses, for his or her parent, in a financial institution. Except as provided in
17par. (d), amounts deposited into such an account and any interest, dividends, or other
18gain that accrues on amounts deposited into the account may be used only to pay
19health care expenses of a beneficiary.

AB282,5,220 (c) Payment of claims. If a beneficiary incurs costs for health care expenses,
21the beneficiary, the sponsor, or the entity providing the goods or services to the
22beneficiary may submit a form, created by the department of revenue, that
23summarizes the costs incurred and payment and beneficiary information, along with
24a copy of the bill, or a copy of the receipt if the beneficiary or sponsor has paid for the
25health care expenses, to the financial institution at which the account created under

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1this subsection is established. The financial institution shall pay the bill, or
2reimburse the beneficiary or sponsor, if sufficient funds to do so are in the account.

AB282,5,53 (d) Termination of account. 1. Upon the death of all beneficiaries of an account,
4the account shall terminate and any amount remaining in the account shall be
5returned to the sponsor if he or she is still alive.

AB282,5,86 2. Upon the death of all beneficiaries of an account, the account shall terminate
7and any amount remaining in the account shall pass to the beneficiary's estate if no
8sponsor of the account is alive.

AB282,5,1910 71.83 (1) (ch) Parental assistance health care expenses account withdrawals.
11If a sponsor, as defined under s. 71.10 (10) (a) 4., or beneficiary, as defined under s.
1271.10 (10) (a) 1., is required to add any amount to federal adjusted gross income
13under s. 71.05 (6) (a) 25., the sponser or beneficiary shall also pay an amount equal
14to 10 percent of any accumulated interest, dividends, or other gain that has accrued
15beginning on the date on which the account was opened and ending on the date on
16which the withdrawal from the account occurs that results in the sponsor or
17beneficiary adding an amount under s. 71.05 (6) (a) 25. The department of revenue
18shall assess, levy, and collect the penalty under this paragraph as it assesses, levies,
19and collects taxes under this chapter.