|
House Bill 2383 |
House Author: Eiland et al. |
|
Effective: 6-14-13 |
Senate Sponsor: Duncan |
House Bill 2383 amends the Human Resources Code to authorize the owner of a life insurance policy with a face amount of more than $10,000 to enter into a life settlement contract under the Life Settlements Act for the benefit of a recipient of long-term care services and supports in exchange for direct payments to a health care provider or, if services are provided under the Medicaid program, to the state. The bill sets out minimum requirements relating to use of contract proceeds and provision of services under a life settlement contract, and requirements for a person who enters into a contract with an owner of a life insurance policy and for a life settlement contract provider who enters into life settlement contracts with owners of life insurance policies. The bill establishes guidelines for claims against a life settlement contract provider with whom an owner of a life insurance policy enters into a life settlement contract and authorizes the Texas Department of Insurance to conduct periodic market examinations of such providers. The bill exempts certain life insurance policies subject to a life settlement contract from certain antifraud initiative requirements relating to measures for resolving material inconsistencies between medical records and insurance applications if the contract has been in force at least five years.
House Bill 2383 requires the Health and Human Services Commission (HHSC) to educate applicants for Medicaid long-term care services and supports about options for life insurance policies and specifies that entering into a life settlement contract is not the sole method by which the owner of a life insurance policy may avoid having the policy considered as an asset or resource in determining Medicaid eligibility. The bill requires the executive commissioner of HHSC to adopt rules to implement the bill's provisions and prohibits the implementation of a provision on determination that such implementation is not cost-effective or feasible.