West Virginia committee advances Senate Bill 6 to protect life insurance for Medicaid applicants
March 19, 2025 | 2025 Legislature WV, West Virginia
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The West Virginia Senate Banking and Insurance Committee convened on March 19, 2025, to discuss key legislative matters, primarily focusing on Senate Bill 6. The meeting centered around a committee substitute that aims to amend the treatment of life insurance policies in relation to Medicaid eligibility.
The committee substitute proposes the creation of a new section in the human resources code, which would exempt the first $25,000 of the cash value or death benefit of a life insurance policy from Medicaid eligibility calculations. This change is intended to assist low-income West Virginians who may possess small life insurance policies. Currently, individuals seeking Medicaid long-term care services often face a "spend down" process, which may require them to cancel their life insurance policies to meet eligibility requirements. By allowing this exemption, the bill seeks to help individuals retain their life insurance, thereby preventing the state from incurring funeral and burial costs when such policies are forfeited.
The fiscal note provided by the Department of Human Resources indicates that the legislation would have a minimal fiscal impact. It was noted that coverage denials due to cash surrender value are infrequent, and asset limits for Medicare premium assistance groups are relatively high, suggesting that cash value is not typically a barrier to eligibility.
During the meeting, committee members expressed support for the bill, recognizing its potential to alleviate financial burdens on vulnerable populations. Following discussions, the committee voted unanimously to adopt the committee substitute for Senate Bill 6.
Vice Chairman of the committee subsequently moved to report the committee substitute to the full Senate with a recommendation for passage, while also referring it to the Committee on Health and Human Resources for further consideration. The motion was approved without opposition, marking a significant step forward for the proposed legislation.
The committee's actions reflect a commitment to improving access to Medicaid services for West Virginians, particularly those with limited financial resources. Further discussions and evaluations will continue as the bill progresses through the legislative process.
The committee substitute proposes the creation of a new section in the human resources code, which would exempt the first $25,000 of the cash value or death benefit of a life insurance policy from Medicaid eligibility calculations. This change is intended to assist low-income West Virginians who may possess small life insurance policies. Currently, individuals seeking Medicaid long-term care services often face a "spend down" process, which may require them to cancel their life insurance policies to meet eligibility requirements. By allowing this exemption, the bill seeks to help individuals retain their life insurance, thereby preventing the state from incurring funeral and burial costs when such policies are forfeited.
The fiscal note provided by the Department of Human Resources indicates that the legislation would have a minimal fiscal impact. It was noted that coverage denials due to cash surrender value are infrequent, and asset limits for Medicare premium assistance groups are relatively high, suggesting that cash value is not typically a barrier to eligibility.
During the meeting, committee members expressed support for the bill, recognizing its potential to alleviate financial burdens on vulnerable populations. Following discussions, the committee voted unanimously to adopt the committee substitute for Senate Bill 6.
Vice Chairman of the committee subsequently moved to report the committee substitute to the full Senate with a recommendation for passage, while also referring it to the Committee on Health and Human Resources for further consideration. The motion was approved without opposition, marking a significant step forward for the proposed legislation.
The committee's actions reflect a commitment to improving access to Medicaid services for West Virginians, particularly those with limited financial resources. Further discussions and evaluations will continue as the bill progresses through the legislative process.
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