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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of a life insurance policy in |
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determining eligibility for medical assistance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 32, Human Resources Code, |
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is amended by adding Section 32.02613 to read as follows: |
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Sec. 32.02613. EXCLUSION OF LIFE INSURANCE POLICIES UNDER |
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CERTAIN CIRCUMSTANCES. (a) In determining eligibility and need of |
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a person for medical assistance, the department shall treat a life |
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insurance policy owned by the person in the manner provided by this |
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section. |
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(b) The department may not consider as assets or resources |
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of a person who meets the state's nursing home level of care the |
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value of a life insurance policy that is in force and owned by the |
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person if the person enters into a life settlement contract in |
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accordance with this section. In this subsection, "value" means |
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the total amount of guaranteed periodic payments a person is |
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entitled to receive under Subsection (c). |
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(c) The owner of a life insurance policy with a face amount |
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of more than $10,000 may enter into a life settlement contract under |
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Chapter 1111A, Insurance Code, in exchange for guaranteed periodic |
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payments to the state to be used only for the provision of Medicaid |
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long-term care services to the owner of the policy. |
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(d) In addition to the requirements under Chapter 1111A, |
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Insurance Code, a life settlement contract entered into as provided |
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by Subsection (b) must: |
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(1) provide that the lesser of five percent of the face |
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amount of the life insurance policy or $5,000 is reserved as a death |
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benefit payable to the owner's estate or a named beneficiary; |
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(2) provide that the balance of payments required |
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under the contract that are unpaid on the death of the owner must be |
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paid to the owner's estate or a named beneficiary; |
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(3) include a schedule evidencing the total amount |
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payable, the number of payments, and the amount of each payment |
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required to be paid under the life settlement contract; and |
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(4) require that all proceeds of the life settlement |
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contract be held in an irrevocable state or federally insured |
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account. |
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(e) The department must provide as part of the application |
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for medical assistance written notice of the option to enter into a |
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life settlement contract as provided in this section. |
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(f) The executive commissioner of the Health and Human |
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Services Commission in consultation with the commissioner of |
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insurance shall adopt rules necessary to implement this section. |
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SECTION 2. Not later than January 1, 2014, the executive |
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commissioner of the Health and Human Services Commission shall |
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adopt rules necessary to implement Section 32.02613, Human |
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Resources Code, as added by this Act. |
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SECTION 3. The change in law made by this Act applies only |
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to a determination of eligibility of a person for medical |
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assistance benefits made on or after January 1, 2014. A |
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determination of eligibility made before January 1, 2014, is |
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governed by the law in effect on the date the determination was |
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made, and the former law is continued in effect for that purpose. |
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SECTION 4. If before implementing any provision of this Act |
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a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |