MEDICARE PROVISION OPPOSED; A PROVISION IN THE NEW HEALTH-CARE BILL PENALIZES SENIORS FOR SEEKING MEDICAID AFTER PASSING ON THEIR SAVINGS TO OTHERS.(A SECTION)

Byline: Jeannie Kever REGIONAL REPORTER

******** CORRECTION ********The following correction was published on Monday, November 11, 1996. A story that was published Sunday focused on a Medicaid provision in the federal health-care bill. The story should have had a headline that referred to Medicaid. The headline that appeared referred to Medicare.

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Talk about the recently passed federal health-care bill focused on allowing people to keep their insurance when they change jobs, and letting new mothers and their babies stay in the hospital for 48 hours.

Few people noticed the provision that said senior citizens could be hauled off to jail for giving away their money and then asking the government to pay their nursing home bills.

Now advocates for the elderly hope to get that provision repealed.

"This legislation makes criminals out of elderly Americans who have worked hard all their lives and played by the rules," said Charlotte Bray, staff counsel to the state Department of Elder Affairs.

Beginning Jan. 1, it will be a crime to ask Medicaid to pay your nursing home bills if you have transferred assets to anyone within …