Detox - Revenue Recap 7-26-17

Are counties treating DETOX as medical care to this purpose?

Lisa Stadler

Accounting and Collections Supervisor

Rice County Social Services

507-384-6438

The Minnesota Department of Revenue would like to notify your agency about a 2016 legislative change that clarifies the income calculation and income thresholds that are used to evaluate whether a medical care debt may be submitted for Revenue Recapture.

Minnesota Statute § 270A.03, subd. 5, part (b) was amended to clarify:

• Calculation of income includes the income of the debtor’s spouse
• Debtor’s spouse is considered a dependent
• Income levels have increased

This change is effective retroactively for debts incurred after December 31, 2014.

Please see the updates below that are underlined.

(b) A debt does not include any legal obligation to pay a claimant agency for medical care, including hospitalization if the income of the debtor at the time when the medical care was rendered does not exceed the following amount:

(1) for an unmarried debtor, an income of $12,560 or less;

(2) for a debtor with one dependent, an income of $16,080 or less;

(3) for a debtor with two dependents, an income of $19,020 or less;

(4) for a debtor with three dependents, an income of $21,580 or less;

(5) for a debtor with four dependents, an income of $22,760 or less; and

(6) for a debtor with five or more dependents, an income of $23,730 or less.

For purposes of this paragraph, "debtor" means the individual whose income, together with the income of the individual's spouse, other than a separated spouse, brings the individual within the income provisions of this paragraph. For purposes of this paragraph, a spouse, other than a separated spouse, shall be considered a dependent.

Please contact the Revenue Recapture Program if you have additional questions. We can be reached at 651-556-3037 or email us at revenue.recapture@state.mn.us.

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