(1) As used in this section:
(a) “Person with a serious mental illness” means a person who is diagnosed by a psychiatrist, a licensed clinical psychologist or a certified nonmedical examiner as having dementia, schizophrenia, bipolar disorder, major depression or other affective disorder or psychotic mental disorder other than a disorder caused primarily by substance abuse.
(b) “Public institution” means:
(A) A state hospital as defined in ORS 162.135;
(B) A local correctional facility as defined in ORS 169.005;
(C) A Department of Corrections institution as defined in ORS 421.005; or
(D) A youth correction facility as defined in ORS 162.135.
(2) Except as provided in subsection (6) of this section, the Department of Human Services shall suspend the medical assistance of a person with a serious mental illness when:
(a) The person receives medical assistance because of a serious mental illness; and
(b) The person becomes an inmate residing in a public institution.
(3) The department shall continue to determine the eligibility of the person as categorically needy as defined in ORS 414.025.
(4) Upon notification that a person described in subsection (2) of this section is no longer an inmate residing in a public institution, the department shall reinstate the person’s medical assistance if the person is otherwise eligible for medical assistance.
(5) This section does not extend eligibility to an otherwise ineligible person or extend medical assistance to a person if matching federal funds are not available to pay for medical assistance.
(6) Subsection (2) of this section does not apply to a person with a serious mental illness residing in a state hospital as defined in ORS 162.135 who is under 22 years of age or who is 65 years of age or older. [2005 c.494 §2; 2007 c.70 §193]
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