205.631 Life settlement proceeds for long-term care services not considered as

382 words·~2 min read·/ky/205-631

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

resource or asset for Medicaid eligibility -- Notice of exhaustion of proceeds --

Medicaid and applied income payments to begin immediately upon exhaustion

of life settlement proceeds -- Administrative regulations.

(a)To the extent allowable under state or federal law, the proceeds of a life

settlement received pursuant to KRS 304.15-726 shall not be considered as a

resource or asset in determining a Medicaid applicant's or recipient's eligibility

for Medicaid and shall only be used as allowed for long-term-care services in

accordance with KRS 304.15-726.

(b)No state or federal Medicaid funds may be used for the recipient's care until

available proceeds from the life settlement are utilized for the recipient's care,

excluding the amount retained for final expenses in accordance with KRS

304.15-726.

(c)The recipient, as defined in KRS 304.15-726, shall provide notice, in a

manner prescribed by the cabinet, that the life settlement proceeds in the

irrevocable account established pursuant to KRS 304.15-726 are exhausted or

will become exhausted on a specified date.

(2)The cabinet shall ensure that Medicaid and applied income payments shall begin on

the day following exhaustion of the life settlement proceeds if notice is provided to

the cabinet as required by subsection (1)(c) of this section.

(3)The cabinet may promulgate administrative regulations defining a service or support

deemed a long-term-care service for the purposes of KRS 304.15-726. The cabinet

shall promulgate an administrative regulation prescribing the manner in which a

recipient, as defined in KRS 304.15-726, shall provide notice to the cabinet in

accordance with subsection (1)(c) of this section.

(4)The cabinet shall provide to all applicants as part of the application for enrollment

in the Medicaid program:

(a)Written notice of the options provided in KRS 304.15-726; and

(b)Information about options that do not allow a life insurance policy to be

considered as an asset or resource in determining eligibility for medical

assistance.

(5)The cabinet shall provide information about the options in KRS 304.15-726 to other

state and local, public and private agencies and organizations in cooperation with

one

(1)or more nonprofit organizations, pursuant to an agreement between the state

and each nonprofit organization. Costs for materials and distribution of information

required by this subsection shall not be the responsibility of the state, unless

required by law.