IL SB2832

Requires financial institutions (banks, savings banks, credit unions, savings associations) to furnish financial records to the Department of Healthcare and Family Services at no cost to verify assets for Medicaid applicants and recipients determined to be aged, blind, or disabled.

Amends the Illinois Banking Act, Illinois Savings and Loan Act of 1985, Savings Bank Act, and Illinois Credit Union Act to permit financial institutions to disclose customer financial records pursuant to authorization by medical assistance applicants/recipients for federal asset verification requirements under Social Security Act Section 1940 (42 U.S.C. 1396w).

Defines "financial institution" to include banks, savings banks, card issuers, industrial loan companies, trust companies, savings associations, building and loan associations, credit unions, and consumer finance institutions.

Protects financial institutions from liability for disclosing information to state agencies in accordance with this requirement, provided the action does not constitute gross negligence or willful misconduct.

Adds Section 11-5.1 to the Illinois Public Aid Code establishing eligibility verification procedures for medical assistance, including income verification by July 1, 2011 and residency verification, with electronic data sharing authorized with Social Security Administration and other state agencies.