Bill
S 879
Raises Medicaid income limit to 138% FPL and counts life insurance cash surrender value as an exempt asset, with $10k individual / $20k couple resource limits (inflation-adjusted).
Status (key dates)
- Introduced: March 6, 2025 (Sen. Jason M. Lewis, Fifth Middlesex).
- Passed the Senate: May 13, 2025. Delivered to the House/Assembly and referred to committee(s); amended on third reading (879A). Hearings and committee activity occurred in spring–summer 2025.
- Administrative requirement in bill: Division must submit a State Plan Amendment (SPA) within 30 days of the bill’s effective date and promulgate implementing regulations.
Purpose
- To raise and modernize Medicaid (MassHealth) eligibility thresholds for older adults by (1) aligning the monthly income limit with 138% of the federal poverty level (FPL) and (2) increasing and clarifying the countable resource limits and certain resource exclusions for seniors.
Key provisions
- Income limit (amends G.L. c.118E, §25(1)): Eligibility monthly income may not exceed the level equivalent to 138% of the federal poverty level, with that level updated annually.
- Resource treatment (inserting new subsections after §25(5)):
- (6) Treats the cash surrender value of any life insurance owned by the applicant or spouse as an exempt resource (language specifies “without regard to the face value” of the policy or policies).
- (7) Establishes countable resource limits of $10,000 for an individual and $20,000 for a couple.
- (8) Directs that the $10,000/$20,000 resource thresholds be adjusted annually for inflation using the U.S. Dept. of Labor Consumer Price Index for All Urban Consumers (CPI‑U).
- Implementation: The Division (responsible Medicaid agency) must file a State Plan Amendment within 30 days of the bill’s effective date and promulgate regulations necessary to implement the new income and resource rules.
Who is affected
- Primary: Seniors and older adults seeking Medicaid long‑term services and supports (including nursing facility care and certain home‑ and community‑based services) whose eligibility is determined by income and asset/resource tests.
- Secondary: The state Medicaid program (administration, eligibility staff), providers of long‑term care, and families assisting elders with finances and planning.
Likely impact
- Expands eligibility for some seniors by: (a) raising the income eligibility threshold to 138% FPL; (b) increasing the resource ceilings to $10K/$20K; and (c) excluding life‑insurance cash surrender value from countable assets. These changes will allow more low‑ and moderate‑income seniors to qualify for Medicaid or preserve eligibility while retaining modest assets.
- Administrative impact: the Medicaid agency must update policy, submit an SPA, and issue regulations; there may be short‑term administrative costs and potential longer‑term program costs due to expanded eligibility.
Notes and caveats
- The bill text appears in the Massachusetts General Court format (G.L. c.118E). Some provided metadata (sponsors list and committee referrals) contains duplicative or inconsistent entries; the bill as presented is sponsored/introduced by Senator Jason M. Lewis and relates to Health Care Financing. Related and companion measures are listed in the docket material.
Compiled from official sources — confirm details with the bill’s official record.
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