Legislators in Texas have recently passed House Bill 2383, allowing state residents to utilize proceeds from a Medicaid Life Settlement to help pay for current long-term care services. Some Life Settlement Companies are now positioning to help Americans deal with current and overwhelming healthcare costs.
Without objection from Governor Rick Perry, the Medicaid Life Settlement bill will become Texas law and take full effect in September 2013. The bill and the entire notion of Medicaid Life Settlements will enable life insurance policy holders to convert their life insurance policy into a Medicaid Life Settlement Plan where the proceeds are paid directly to your chosen care provider and for current long-term care expenses.
Residents of most states must essentially give up their life insurance policy when qualifying for Medicaid. Life insurance is a non qualified asset for Medicaid purposes and this Medicaid life settlement bill impacts an increasingly large amount of the population when you consider that over a third of all Medicaid applicants have a life insurance policy.
While the passing of the Texas Medicaid life settlement law is groundbreaking, Texas is not that far ahead of many other states. Other Medicaid life settlement bills are being processed in California, Kentucky, Florida, Louisiana, Montana, North Carolina and New Jersey. Several Medicaid life settlement laws should be passed this year and there is talk of consumer disclosure and protection measures in a lot of other states. Under new laws, thousands of Americans will be able to salvage thousands of dollars in hidden value, by converting a life insurance policy that may otherwise have just been abandoned; into a Medicaid life settlement which could potentially provide thousands of dollars to pay for long term care.
It is already perfectly legal to convert your life insurance policy into a Medicaid life settlement in all states. The pending laws and bills go more to the essence of how the plan needs to be administered as well as consumer disclosures and protection measures. Awareness is the largest issue. Seniors unwittingly and routinely abandon life insurance policies with no cash value because their premiums are increasing or the life insurance policy is no longer needed.
Anyone over the age of 65 should have their life insurance policy evaluated before canceling or surrendering the life insurance coverage. Seniors are shocked to learn that a life insurance policy with no cash surrender value may indeed qualify for a Medicaid life settlement.