(1) (a) To the extent allowable under state or federal law, the proceeds of a life settlement received pursuant to KRS § 304.15-726 shall not be considered as a resource or asset in determining a Medicaid applicant’s or recipient’s eligibility for Medicaid and shall only be used as allowed for long-term-care services in accordance with KRS § 304.15-726.
(b) No state or federal Medicaid funds may be used for the recipient’s care until available proceeds from the life settlement are utilized for the recipient’s care, excluding the amount retained for final expenses in accordance with KRS

Terms Used In Kentucky Statutes 205.631

  • Cabinet: means the Cabinet for Health and Family Services. See Kentucky Statutes 205.010
  • Federal: refers to the United States. See Kentucky Statutes 446.010
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010

304.15-726.
(c) The recipient, as defined in KRS § 304.15-726, shall provide notice, in a manner prescribed by the cabinet, that the life settlement proceeds in the irrevocable account established pursuant to KRS § 304.15-726 are exhausted or will become exhausted on a specified date.
(2) The cabinet shall ensure that Medicaid and applied income payments shall begin on the day following exhaustion of the life settlement proceeds if notice is provided to the cabinet as required by subsection (1)(c) of this section.
(3) The cabinet may promulgate administrative regulations defining a service or support deemed a long-term-care service for the purposes of KRS § 304.15-726. The cabinet shall promulgate an administrative regulation prescribing the manner in which a recipient, as defined in KRS § 304.15-726, shall provide notice to the cabinet in accordance with subsection (1)(c) of this section.
(4) The cabinet shall provide to all applicants as part of the application for enrollment in the Medicaid program:
(a) Written notice of the options provided in KRS § 304.15-726; and
(b) Information about options that do not allow a life insurance policy to be considered as an asset or resource in determining eligibility for medical assistance.
(5) The cabinet shall provide information about the options in KRS § 304.15-726 to other state and local, public and private agencies and organizations in cooperation with one (1) or more nonprofit organizations, pursuant to an agreement between the state and each nonprofit organization. Costs for materials and distribution of information required by this subsection shall not be the responsibility of the state, unless required by law.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 60, sec. 2, effective July 15, 2014.