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HD 3265

An Act to increase the Medicaid life insurance exemption

194th Legislature (2025-2026) Introduced by Donnie Berthiaume and 1 co-sponsor

Massachusetts bill increases the amount of life insurance assets Medicaid applicants can retain without losing eligibility, helping low-income families maintain insurance protection while accessing healthcare benefits.

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Bill Summary · HD 3265

Legislative bill overview

HD 3265 would increase the asset limit exemption for life insurance policies under Massachusetts Medicaid (MassHealth). Currently, Medicaid has strict asset limits that can disqualify applicants; this bill would allow individuals to retain more life insurance value without affecting their eligibility. The change aims to help beneficiaries maintain insurance coverage while accessing Medicaid benefits.

Why is this important

Life insurance serves as a critical financial safety net for families, particularly for low-income households. By exempting more insurance value from Medicaid asset calculations, the bill could prevent people from having to surrender or liquidate policies to qualify for healthcare benefits—a choice that currently leaves dependents vulnerable. This affects individuals applying for Medicaid and those already receiving benefits who want to maintain life insurance protection.

Potential points of contention

  • Cost to the state: Higher exemptions may increase Medicaid enrollment or reduce disenrollments, potentially increasing program expenditures, though the fiscal impact depends on the exemption amount specified
  • Equity questions: Critics may argue the exemption primarily benefits those with resources to purchase life insurance, potentially advantaging some low-income groups over others
  • Definitional concerns: The bill's effectiveness depends on how "life insurance" is defined—whether it includes whole life policies (which accumulate cash value) or only term policies, and how surrender values are assessed

Compiled from official sources — confirm details with the bill’s official record.

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