13RS HB314
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HB314

13RS

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HB 314/FN (BR 1090) - R. Damron, S. Westrom

     AN ACT relating to treatment of a life insurance policy for Medicaid eligibility.
     Create a new section of KRS Chapter 205 to authorize the Cabinet for Health and Family Services to treat the value of life insurance owned by an applicant or recipient as an asset if the life insurance is in force and the applicant meets the state's requirements for nursing home or nursing facility level of care; provide that the value of the policy shall not be used to determine the applicant or recipient's eligibility for Medicaid if the applicant enters into a life settlement contract as prescribed by the section; provide that an owner of a life insurance policy in the face amount of at least ten thousand dollars ($10,000) may enter into a life settlement contract pursuant to KRS 304.15-700 to KRS 304.15-720 in exchange for periodic payments to the Medicaid program to be used solely for Medicaid coverage of long-term-care services for the owner of the policy; require that the life settlement contract provides that the lesser of five percent of the policy or five $5,000 is reserved as a death benefit, that the balance of payments unpaid at the owner's death be paid to the owner's estate or a named beneficiary, that a schedule be included evidencing the total amount and the number and amount of each payment, require that all proceeds of the contract be held in an irrevocable trust or federally insured account; require the life settlement provider to file all advertisements with the Department of Insurance; require the Department for Medicaid Services to provide written notice to each applicant for Medicaid as part of the application of the options to enter a life settlement contract; require the Department of Insurance to promulgate jurisdictionally appropriate administrative regulations to implement the section; and require the Department for Medicaid Services to seek any required state plan amendments or federal waivers; create a new section of KRS 304.15-700 to KRS 304.15-720 in the insurance code, relating to life settlements, to conform.

HB 314 - AMENDMENTS


     HCS/FN - Amend Section 1 to add a certificate holder of a group life insurance policy and to increase the death benefit reserve from $5,000 to $10,000; clarify that nothing in this section will prevent conversion of a life insurance policy to a long-term care policy.
     HFA (1, J. Fischer) - Direct the Legislative Research Commission to direct the Interim Joint Committee on Banking and Insurance to study the issue of Medicaid asset liability requirements and the use of life insurance policy assets.
     HFA (2, J. Fischer) - Direct the Legislative Research Commission to direct the Interim Joint Committee on Banking and Insurance to study the issue of Medicaid asset liability requirements and the use of life insurance policy assets.
     HFA (3/Title, J. Fischer) - Make title amendment.
     HFA (4, R. Damron) - Amend Section 1 to clarify that life settlement contracts are not the only method for a life insurance policy to be excluded as an asset for Medicaid eligibility.
     HFA (5, J. Fischer) - Create a new section of KRS Chapter 205, relating to Medicaid, to permit irrevocable assignment of a life insurance policy to the state for purposes of qualification for Medicaid for a person who is 55 years of age or older or who is permanently institutionalized, to the extent of Medicaid benefits provided and premiums or expenses paid by the department to the insurer that issued the policy, with reversion to the beneficiary named by the recipient of any life insurance policy proceeds that exceed the amount of Medicaid benefits provided to the recipient.
     HFA (6, J. Fischer) - Create a new section of KRS Chapter 205, relating to Medicaid, to permit irrevocable assignment of a life insurance policy to the state for purposes of qualification for Medicaid for a person who is 55 years of age or older or who is permanently institutionalized, to the extent of Medicaid benefits provided and premiums or expenses paid by the department to the insurer that issued the policy, with reversion to the beneficiary named by the recipient of any life insurance policy proceeds that exceed the amount of Medicaid benefits provided to the recipient.

     Feb 11-introduced in House
     Feb 12-to Health & Welfare (H)
     Feb 19-posted in committee
     Feb 25-taken from Health & Welfare (H); 1st reading; returned to Health & Welfare (H)
     Feb 26-reported favorably, 2nd reading, to Rules with Committee Substitute
     Feb 27-posted for passage in the Regular Orders of the Day for Thursday, February 28, 2013; floor amendments (2) and (4) filed to Committee Substitute, floor amendments (1) and (3-title) filed
     Mar 1-floor amendment (6) filed to Committee Substitute, floor amendment (5) filed
     Mar 4-3rd reading, passed 91-3 with Committee Substitute, floor amendments (4) and (6)
     Mar 5-received in Senate; taken from Committee on Committees (S); 1st reading; returned to Committee on Committees (S)
     Mar 6-taken from Committee on Committees (S); 2nd reading; returned to Committee on Committees (S)

Vote History
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