Introduced Version






HOUSE BILL No. 1618

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 12-15.

Synopsis: Medicaid payments for life insurance premiums. Allows the state to use federal or state Medicaid funds for life insurance expenditures for a Medicaid recipient or applicant who assigns the life insurance policy to the state or makes the state a beneficiary of the life insurance policy. Provides that the value of a life insurance policy that is assigned to the state or makes the state a beneficiary shall be disregarded in determining the applicant's or recipient's eligibility for Medicaid.

Effective: July 1, 2003.





Brown T, Denbo




    January 16, 2003, read first time and referred to Committee on Insurance, Corporations and Small Business.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1618



    A BILL FOR AN ACT to amend the Indiana Code concerning Medicaid.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 12-15-1-20; (03)IN1618.1.1. -->     SECTION 1. IC 12-15-1-20 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 20. To the extent allowed by federal law, the office may use federal or state funds under the Medicaid program to pay the premiums and other expenses related to a life insurance policy that:
        (1) is owned by an applicant or a recipient; and
        (2) either:
            (A) is assigned to the state; or
            (B) makes the state a beneficiary in an irrevocable election.

SOURCE: IC 12-15-3-1; (03)IN1618.1.2. -->     SECTION 2. IC 12-15-3-1 , AS AMENDED BY P.L.128-1999, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. (a) Except as provided in subsection (b) and section 7 of this chapter, an applicant for or recipient of Medicaid is ineligible for assistance if the total cash value of money, stock, bonds, and life insurance owned by:
        (1) the applicant or recipient is more than one thousand five

hundred dollars ($1,500) for assistance to the aged, blind, or disabled; or
        (2) the applicant or recipient and the applicant's or recipient's spouse is more than two thousand two hundred fifty dollars ($2,250) for medical assistance to the aged, blind, or disabled.
    (b) In the case of an applicant who is an eligible individual, a Holocaust victim's settlement payment received by the applicant or the applicant's spouse may not be considered when calculating the total cash value of money, stock, bonds, and life insurance owned by the applicant or the applicant's spouse.

SOURCE: IC 12-15-3-2; (03)IN1618.1.3. -->     SECTION 3. IC 12-15-3-2 , AS AMENDED BY P.L.128-1999, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) Except as provided in section 7 of this chapter, if the parent of an applicant for or a recipient of assistance to the blind or disabled who is less than eighteen (18) years of age owns money, stock, bonds, and life insurance whose total cash value is more than one thousand five hundred dollars ($1,500), the amount of the excess shall be added to the total cash value of money, stock, bonds, and life insurance owned by the applicant or recipient to determine the recipient's eligibility for Medicaid under section 1 of this chapter.
    (b) However, a Holocaust victim's settlement payment received by the parent of an applicant for or a recipient of assistance may not be added to the total cash value of money, stock, bonds, and life insurance owned by the applicant or recipient to determine the recipient's eligibility for Medicaid under section 1 of this chapter.
SOURCE: IC 12-15-3-5; (03)IN1618.1.4. -->     SECTION 4. IC 12-15-3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. Except as provided in section 7 of this chapter, the office may set the total cash value of money, stock, bonds, and life insurance that an applicant for or a recipient of Medicaid may own without being ineligible for Medicaid in cases not described in section 1 of this chapter.
SOURCE: IC 12-15-3-7; (03)IN1618.1.5. -->     SECTION 5. IC 12-15-3-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) The total value of a life insurance policy owned by an applicant or a recipient may not be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid if the applicant or recipient:
        (1) makes an irrevocable election to name the state as the beneficiary of the life insurance policy; or
        (2) assigns the insurance policy to the state.
    (b) The state has an insurable interest in an applicant or recipient who assigns a life insurance policy to the state or names

the state as beneficiary of the life insurance policy under this section.