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Betty's Corner


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Bill to Help Seniors Fund Medicaid Long-Term Care Using Life Settlements

The Lifeline Program Enables Seniors to Pay Healthcare Costs with Life Insurance

www.lifehealth.com


older manATLANTA–()–The life settlement industry recently came full circle when Texas legislators passed a bill enabling state residents to use the proceeds of a life settlement to help fund Medicaid long-term care expenses. According to executives at the Lifeline Program, the industry, originally founded to help individuals in deep financial straits, is once again assisting Americans facing seemingly insurmountable healthcare costs.

Lifeline Program President and CEO Wm. Scott Page recently appeared on Fox Business Network’s Varney & Co. to discuss the new law and pointed out that the new legislation has the potential to save states millions of dollars per year in Medicaid costs as seniors will be able to delay their entry into state-funded healthcare programs.

Texas takes an innovative step forward

Texas Gov. Rick Perry this week received House Bill 2383, which allows state residents to use life settlements to help pay for Medicaid long-term care services. Unless he vetoes the bill, it will become law and take effect in September. The bill enables the holder of a life insurance policy with a face amount more than $10,000 to sell it through a life settlement, and then use the proceeds to pay for long-term care services. The state Medicaid program will not consider life settlement proceeds when determining eligibility for Medicaid nursing home benefits.

In most states, if a resident wants to apply for Medicaid, he or she must surrender their life insurance policy. The new bill impacts a large number of people when one considers that 38 percent of all Medicaid applicants have a life insurance policy

In most states, if a resident wants to apply for Medicaid, he or she must surrender their life insurance policy. The new bill impacts a large number of people when one considers that 38 percent of all Medicaid applicants have a life insurance policy (U.S. Government Accountability Office, 2007).

“This legislation creates a way for individuals to fund some long-term care costs from the proceeds of the sale of their life insurance,” said Page. “Currently, they have to surrender their policies and receive nothing in return. Under the new law, many individuals will receive thousands of dollars that they can use to pay private medical providers of their choosing. It’s groundbreaking legislation.”

Texas isn’t alone. Similar bills have been filed in California, Kentucky, Florida, Louisiana, Montana, North Carolina and New Jersey and may be passed in the near future.

The Lifeline Program is a life settlement provider in Atlanta, Ga. Founded in 1989, the company assists baby boomers, seniors and their families by purchasing unwanted or underperforming life insurance policies for immediate cash. The Lifeline Program actively educates and partners with insurance agencies, estate planners, financial planners and broker-dealers to establish life settlement business lines. For more information on The Life-Changing Solution offered through life settlements, contact Stephen Terrell of The Lifeline Program at 770-724-7300 or visit www.thelifeline.com.


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