The proposed legislation, General Assembly Raised Bill No. 432, aims to amend eligibility criteria for various public assistance programs by disregarding the cash value of life insurance policies. Specifically, it modifies existing statutes related to Medicaid, temporary family assistance, and the state supplement program. The bill repeals certain provisions that previously limited the exclusion of life insurance cash value to policies worth less than ten thousand dollars and instead allows for the cash value of any life insurance policy to be disregarded in eligibility determinations. This change is intended to ensure that individuals are not disqualified from receiving assistance solely based on the cash value of their life insurance.

Additionally, the bill introduces new language that clarifies the treatment of life insurance policies in the context of asset calculations for public assistance programs. It specifies that the cash value of life insurance policies will not be considered when determining eligibility for these programs, thereby providing greater financial security for individuals seeking assistance. The effective date for these changes is set for July 1, 2026, and the bill aims to align state regulations with federal law while promoting equitable access to public assistance for those in need.

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Raised Bill: