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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 210
BY REPRESENTATIVE TALBOT
A CONCURRENT RESOLUTI ON
To urge and request the Department of Insurance, in consultation with the Department of
Health and Hospitals, to study an alternative long-term care benefit option for
Medicaid applicants with life insurance policies who enter into certain viatical
settlement contracts and to report its findings to the legislative committees on
insurance.
WHEREAS, Senate Concurrent Resolution No. 104 of the 2012 Regular Session of
the Legislature established an advisory work group within the Department of Insurance, with
the assistance of the Department of Health and Hospitals, to examine options that may be
available to allow an insured under a life insurance policy to fund long-term care benefits;
and
WHEREAS, such work group considered a number of options, including enacting
legislation on this subject, and the feasibility of such options but did not recommend
specific action; and
WHEREAS, an aging population of "baby boomers" who began reaching the age
of sixty-five on January 1, 2011, presents the potential for enormous burdens on the
Medicaid system that currently provides substantial last-resort funding for both facility and
community-based long-term care; and
WHEREAS, it is feasible that the proceeds of life insurance policies of such
individuals could be utilized to supplement the state's expenditures for long-term care if a
mechanism could be found to access those proceeds; and
WHEREAS, a statutory and regulatory framework, similar to what governs the
viatical settlement industry, could be designed to assure the protection of consumers who
choose to settle their insurance policies in order to obtain a payment source for their long-
term care; and ENROLLEDHCR NO. 210
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WHEREAS, other states are currently considering legislation to enact such a
statutory and regulatory framework, particularly one which will assure the protection of the
interests of both consumers and the state; and
WHEREAS, this issue is especially timely not only because of the size of the state's
rapidly aging population but also because it is anticipated that the younger members of this
population will have longer life expectancies and life insurance policies of greater value.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
urge and request the Department of Insurance, in consultation with the Department of Health
and Hospitals, to study an alternative long-term care benefit option for Medicaid applicants
with life insurance policies who enter into certain viatical settlement contracts.
BE IT FURTHER RESOLVED that the Department of Insurance, in consultation
with the Department of Health and Hospitals, may submit its findings from the study in the
form of a report to the House Committee on Insurance and the Senate Committee on
Insurance on or before January 15, 2015.
BE IT FURTHER RESOLVED that such a study include a review of other states to
determine what actions, particularly the consideration or enactment of legislation, have been
taken on this subject by any other state.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
commissioner of insurance and the secretary of the Department of Health and Hospitals.
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE