Bill > H1095

This bill amends Massachusetts Medicaid law by increasing and clarifying the exemption for life insurance policies when determining Medicaid eligibility. The bill defines key terms such as Cash Surrender Value (CSV) as the amount available in cash upon cancelling an insurance policy, Term Life Insurance as a policy providing coverage for a set period without accumulating cash value, and Permanent Life Insurance as whole life or universal life policies that build cash value over time. Specifically, the bill establishes a $10,000 face value exemption for permanent life insurance policies, which will be adjusted for inflation every five years based on the Consumer Price Index (CPI), with adjustments rounded to the nearest $100. Term life insurance policies will continue to be fully excluded from Medicaid asset calculations. The legislation also requires the Medicaid office to submit a report every three years to legislative committees evaluating the financial impact of this exemption increase, including any effects on beneficiary access to life insurance and funeral cost coverage. This change aims to provide more financial flexibility for Medicaid recipients by allowing them to maintain a slightly higher value of life insurance without jeopardizing their benefits.

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https://malegislature.gov/Bills/194/H1095