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H 1095

An Act to increase the Medicaid life insurance exemption

194th Legislature (2025-2026) Introduced by Donnie Berthiaume and 2 co-sponsors

Massachusetts bill raises the asset exemption limit for life insurance under Medicaid eligibility rules, allowing individuals to retain more life insurance while qualifying for state healthcare benefits.

Accompanied a study order, see H4931
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Bill Summary · H 1095

Legislative bill overview

H.1095 proposes to increase the asset exemption limit for life insurance policies under Massachusetts Medicaid eligibility rules. Currently, Medicaid applicants must disclose and potentially liquidate life insurance above certain thresholds; this bill would raise that exemption amount, allowing individuals to retain more life insurance value while qualifying for Medicaid benefits.

Why is this important

Medicaid asset limits directly affect who qualifies for long-term care coverage. Raising the life insurance exemption allows working and middle-class families to preserve life insurance as an inheritance tool or financial safety net without losing Medicaid eligibility. This particularly impacts elderly individuals and families planning for extended care costs.

Potential points of contention

  • Cost to state: Increasing exemptions expands Medicaid eligibility, potentially increasing state spending on long-term care services and reducing incentives for private savings.
  • Fairness concerns: Higher exemptions may benefit wealthier families with significant life insurance while doing little for those with minimal assets, raising equity questions about who truly benefits.
  • Specific exemption amount unclear: The bill title doesn't specify the new threshold amount, making it difficult to assess the actual fiscal and eligibility impact without reviewing full legislative text.

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

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