Can the state attach life insurance policies for Medicaid?
If a family member in a nursing home goes on Medicaid and all financial assets are gone, can the state attach life insurance policies? If so, do they leave the family enough for burial expenses?
Thank you both. He is evidentally going to get his wish that the nursing home take his home and assets, so we did not know where things stood with life insurance policies. We are having a meeting with the nursing home and I am so thankful for this site because it is good to know that each state handles things differently. If they end up with the policy, then I am guessing creamation with have to be the answer.
It depends on how the state manages their Medicaid program. In general, if the policy has any cash value, it is considered an asset and has to be cashed in with the cash value used in spend-down.
Most whole life policies have a cash value. While most term policies don't.
One thing to do with polices is to change the ownership of the policy from the elder or if they are married - the still in the community spouse who is not going into the NH - from them to their children. Then the policy is not their asset so not within the purview of Medicaid.
Yes and yes...at least in my state. Check with your state program to be sure about the details. You should be able to just Google 'long term medicaid' with the name of your state to find some sources of information.
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Most whole life policies have a cash value. While most term policies don't.
One thing to do with polices is to change the ownership of the policy from the elder or if they are married - the still in the community spouse who is not going into the NH - from them to their children. Then the policy is not their asset so not within the purview of Medicaid.