83R6743 KKR-F
By: Eiland H.B. No. 2383
A BILL TO BE ENTITLED
AN ACT
relating to the consideration of a life insurance policy in
determining eligibility for medical assistance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 32, Human Resources Code,
is amended by adding Section 32.02613 to read as follows:
Sec. 32.02613. EXCLUSION OF LIFE INSURANCE POLICIES UNDER
CERTAIN CIRCUMSTANCES. (a) In determining eligibility and need of
a person for medical assistance, the department shall treat a life
insurance policy owned by the person in the manner provided by this
section.
(b) The department may not consider as assets or resources
of a person who meets the state's nursing home level of care the
value of a life insurance policy that is in force and owned by the
person if the person enters into a life settlement contract in
accordance with this section. In this subsection, "value" means
the total amount of guaranteed periodic payments a person is
entitled to receive under Subsection (c).
(c) The owner of a life insurance policy with a face amount
of more than $10,000 may enter into a life settlement contract under
Chapter 1111A, Insurance Code, in exchange for guaranteed periodic
payments to the state to be used only for the provision of Medicaid
long-term care services to the owner of the policy.
(d) In addition to the requirements under Chapter 1111A,
Insurance Code, a life settlement contract entered into as provided
by Subsection (b) must:
(1) provide that the lesser of five percent of the face
amount of the life insurance policy or $5,000 is reserved as a death
benefit payable to the owner's estate or a named beneficiary;
(2) provide that the balance of payments required
under the contract that are unpaid on the death of the owner must be
paid to the owner's estate or a named beneficiary;
(3) include a schedule evidencing the total amount
payable, the number of payments, and the amount of each payment
required to be paid under the life settlement contract; and
(4) require that all proceeds of the life settlement
contract be held in an irrevocable state or federally insured
account.
(e) The department must provide as part of the application
for medical assistance written notice of the option to enter into a
life settlement contract as provided in this section.
(f) The executive commissioner of the Health and Human
Services Commission in consultation with the commissioner of
insurance shall adopt rules necessary to implement this section.
SECTION 2. Not later than January 1, 2014, the executive
commissioner of the Health and Human Services Commission shall
adopt rules necessary to implement Section 32.02613, Human
Resources Code, as added by this Act.
SECTION 3. The change in law made by this Act applies only
to a determination of eligibility of a person for medical
assistance benefits made on or after January 1, 2014. A
determination of eligibility made before January 1, 2014, is
governed by the law in effect on the date the determination was
made, and the former law is continued in effect for that purpose.
SECTION 4. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.