For the third consecutive term, a bill which would have eased restrictions on the life settlement industry in Massachusetts will not be adopted by the State’s Legislature.
Massachusetts House Bill 508 would have allowed an individual with a life insurance policy of $10,000 or more to enter into a life settlement contract in exchange for direct payments to nursing home, assisted living, and home health care providers. Under the bill, proceeds from these life settlement contracts would not have been considered an asset or resource in determining Medicaid eligibility and would have been fully spent down before any State or Federal Medicaid funds were to be used. Additionally, the bill would have required the State’s Department of Health and Human Services to inform Medicaid applicants about life settlements as an option during the Medicaid application process.
This session, the bill received a “study” order from a legislative committee, effectively ensuring that the bill will not reach the House and Senate floors before formal legislative sessions end on July 31st.