HLS 14RS-5409 ORIGINAL
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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 210
BY REPRESENTATIVE TALBOT
INSURANCE/LIFE: Requests the Department of Insurance to study an alternative long-
term care benefit option for Medicaid applicants with life insurance policies who
enter into certain viatical settlement contracts
A CONCURRENT RESOLUTI ON1
To urge and request the Department of Insurance, in consultation with the Department of2
Health and Hospitals, to study an alternative long-term care benefit option for3
Medicaid applicants with life insurance policies who enter into certain viatical4
settlement contracts and to report its findings to the legislative committees on5
insurance. 6
WHEREAS, Senate Concurrent Resolution No. 104 of the 2012 Regular Session of7
the Legislature established an advisory work group within the Department of Insurance, with8
the assistance of the Department of Health and Hospitals, to examine options that may be9
available to allow an insured under a life insurance policy to fund long-term care benefits;10
and 11
WHEREAS, such work group considered a number of options, including enacting12
legislation on this subject, and the feasibility of such options but did not recommend13
specific action; and14
WHEREAS, such legislation, House Bill No. 545 of the 2013 Regular Session of the15
Legislature and House Bill No. l201 of the 2014 Regular Session of the Legislature, was16
introduced but did not proceed beyond the House Committee on Insurance; and17 HLS 14RS-5409 ORIGINAL
HCR NO. 210
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WHEREAS, an aging population of "baby boomers" who began reaching the age1
of sixty-five on January 1, 2011, presents the potential for enormous burdens on the2
Medicaid system that currently provides substantial last-resort funding for both facility and3
community-based long-term care; and 4
WHEREAS, it is feasible that the proceeds of life insurance policies of such5
individuals could be utilized to supplement the state's expenditures for long-term care if a6
mechanism could be found to access those proceeds; and 7
WHEREAS, a statutory and regulatory framework, similar to what governs the8
viatical settlement industry, could be designed to assure the protection of consumers who9
choose to settle their insurance policies in order to obtain a payment source for their long-10
term care; and11
WHEREAS, other states are currently considering legislation to enact such a12
statutory and regulatory framework, particularly one which will assure the protection of the13
interests of both consumers and the state; and 14
WHEREAS, this issue is especially timely not only because of the size of the state's15
rapidly aging population but also because it is anticipated that the younger members of this16
population will have longer life expectancies and life insurance policies of greater value. 17
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby 18
urge and request the Department of Insurance, in consultation with the Department of Health19
and Hospitals, to study an alternative long-term care benefit option for Medicaid applicants20
with life insurance policies who enter into certain viatical settlement contracts.21
BE IT FURTHER RESOLVED that the Department of Insurance, in consultation22
with the Department of Health and Hospitals, shall submit its findings from the study in the23
form of a report to the House Committee on Insurance and the Senate Committee on24
Insurance on or before January 15, 2015.25
BE IT FURTHER RESOLVED that such a study include a review of other states to26
determine what actions, particularly the consideration or enactment of legislation, have been27
taken on this subject by any other state.28
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the29
commissioner of insurance and the secretary of the Department of Health and Hospitals. 30 HLS 14RS-5409 ORIGINAL
HCR NO. 210
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Talbot HCR No. 210
Urges and requests the Department of Insurance, in consultation with the Department of
Health and Hospitals, to conduct a study of an alternative long-term care benefit option for
Medicaid applicants with life insurance policies who enter into certain viatical settlement
contracts and to report findings and recommendations to the legislative committees on
insurance on or before Jan. 1, 2015.