Bill > S730

This bill amends Massachusetts Medicaid law to clarify and expand life insurance exemptions by defining key terms and establishing new rules for determining asset calculations. Specifically, the bill distinguishes between term life insurance (which remains fully excluded from Medicaid asset calculations) and permanent life insurance policies with cash surrender value (CSV). For permanent life insurance policies, the bill creates a new $10,000 face value exemption that applies to the combined total of all whole life, universal life, and other cash value policies owned by a Medicaid applicant or recipient. The exemption will be automatically adjusted for inflation every five years based on the Consumer Price Index, with adjustments rounded to the nearest $100. To ensure transparency and accountability, the bill also requires the Medicaid office to submit a comprehensive report every three years to legislative committees, evaluating the financial impact of the increased exemption, including its effects on beneficiary access to life insurance and funeral cost coverage. This modification aims to provide more clarity and flexibility for Medicaid participants while maintaining the program's financial integrity.

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https://malegislature.gov/Bills/194/S730