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SB 151

Exempting life insurance cash value from Medicaid eligibility calculations

2026 Regular Session Introduced by Jason Barrett and 3 co-sponsors

West Virginia bill excludes life insurance cash surrender values from Medicaid asset limits, potentially expanding eligibility but raising program cost and equity concerns.

On 2nd reading, rereferred to Health and Human Resources
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Bill Summary · SB 151

Legislative bill overview

SB 151 would exclude the cash value of life insurance policies from asset calculations when determining Medicaid eligibility in West Virginia. Currently, Medicaid applicants must count life insurance cash value as a countable asset, which can disqualify them from receiving benefits if their total assets exceed the threshold. This bill would create a blanket exemption for all life insurance cash values regardless of policy type or amount.

Why is this important

Medicaid eligibility is means-tested, so asset limits directly affect who can access the program—a critical safety net for low-income elderly, disabled, and vulnerable populations. This change could allow more West Virginians to qualify for Medicaid coverage while protecting family life insurance policies from being forced into liquidation to pay for medical care. However, it also affects program costs and may benefit higher-income individuals with larger cash value policies.

Potential points of contention

  • Program cost and fiscal impact: Expanding eligibility typically increases state Medicaid expenditures, raising questions about how the state will fund additional coverage without reducing other benefits or raising taxes
  • Equity concerns: An unlimited exemption may disproportionately benefit wealthier individuals who can afford larger life insurance policies, while means-testing is designed to prioritize limited resources for those most in need
  • Policy design specificity: The bill lacks details on whether the exemption applies to all life insurance types (term, whole life, universal life) and whether there are reasonable limits to prevent abuse, such as caps on exempted values

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

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