Louisiana 2013 Regular Session

Louisiana House Bill HB545

Introduced

4/8/13

Introduced

4/8/13

Refer

4/8/13

Refer

4/8/13

Caption

Provides for an alternative long-term care benefit option for Medicaid applicants with life insurance policies who enter into certain viatical settlement contracts

Impact

The implications of HB 545 on state laws center around the treatment of viatical settlements in the context of Medicaid eligibility. Traditionally, applicants were required to surrender life insurance policies with cash value to qualify for Medicaid benefits; this bill alters that requirement by allowing policyholders to maintain their policies and instead leverage them for immediate healthcare funding. By achieving this, the bill could potentially reduce the financial burden on the state Medicaid system, delaying claims on state resources.

Summary

House Bill 545 introduces an alternative long-term care benefit option for Medicaid applicants who hold life insurance policies. The bill enables these individuals to enter into viatical settlement contracts, allowing them to sell their life insurance policies in exchange for payments made directly to healthcare providers for services eligible under Medicaid. This approach is intended to help policyholders utilize their resources efficiently while deferred or avoiding entry into the Medicaid system altogether. The proceeds from these settlements are protected under specific conditions to ensure they are used for healthcare needs.

Sentiment

General sentiment towards HB 545 appears to be favorable among proponents, who view it as a creative solution to address the financial challenges faced by Medicaid applicants. The ability to utilize life insurance for immediate long-term care needs could enhance access to necessary healthcare services. However, there are underlying concerns about how well this system will be regulated and whether it could inadvertently complicate the financial landscape for vulnerable populations relying on Medicaid.

Contention

A notable point of contention surrounding HB 545 includes discussions on the regulatory framework necessary to oversee viatical settlements adequately. Critics argue that without stringent oversight, the interests of vulnerable policyholders may be jeopardized. Additionally, there are concerns regarding the potential misuse of settlement proceeds and ensuring that the funding genuinely supports healthcare needs rather than other expenses.

Latest HB545 Activity

Companion Bills

No companion bills found.

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