This bill amends the Code of West Virginia to exempt the first $25,000 of the cash value or death benefit of a life insurance policy from being considered in Medicaid eligibility calculations. Specifically, it introduces new language stating that the cash value of a life insurance policy will not be assigned to the Department of Human Services when an individual applies for medical assistance, thereby protecting a portion of the individual's assets from being used to determine eligibility for Medicaid benefits.

In addition to this exemption, the bill outlines various procedural requirements for recipients and their legal representatives regarding claims against third parties, including notice requirements and the department's rights to subrogation. It establishes that if a recipient settles a claim with a third party, they must notify the department and retain an amount equal to the department's subrogation lien. The bill also includes provisions for judicial intervention in disputes over allocations and clarifies that the department cannot penalize pro se recipients for non-compliance with these requirements. Overall, the bill aims to provide financial protection for individuals applying for Medicaid while ensuring the department's interests are adequately represented in third-party claims.

Statutes affected:
Introduced Version: 9-5-11