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Hi folks,


Trying to navigate the many facets of caring for my aging father who has partial paralysis from a brain stem stroke and lives in a skilled nursing facility in Louisiana.


There is much discussion that 'Term life insurance' is not considered an asset on the medicaid eligibility side of things. BUT, I cannot find any information on what happens to term life that is paid to his beneficiaries after his death. Is the term life insurance paid out to his kids (us) taken to recover the Medicaid costs after his death?


We are trying to determine if we (the kids) should continue to pay the monthly fee for the term life insurance plan or not.


Thank you so much for any feedback.

Vegas is spot on as to term goes to beneficiary as indicated in policy.

Also for term it’s the “face value” that should be the factor for LA LTC Medicaid. State can place limits on what face value can be. If you find there’s an issue from the caseworker on its face value, post an update.
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Reply to igloo572
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You could also try calling the insurance company and see if they've ever encountered the state trying to snap up the proceeds. Let us know if you get an answer from the company.
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Reply to vegaslady
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Here are some PDFs about the Louisiana Medicaid Estate Recovery Program.   (Copy & Paste to your browser)
http://ldh.la.gov/assets/medicaid/StatePlan/Sec4/Attachment4.17.pdf

www.dhh.louisiana.gov/assets/medicaid/MedicaidEligibilityPolicy/U-0000. pdf
ESTATE RECOVERY
As required by federal regulations, the State must seek recovery of Medicaid payments for long term care facility services, home and community-based services, and related hospital and prescription drug services from the estate of an individual who was age 55 or older when such services were received.
Medicaid Estate Recovery is not a condition of eligibility. LTC and HCBS applicants/recipients shall be informed at the time of application and renewal that claims for Medicaid assistance received may be subject to recovery from their estate.

http://ldh.la.gov/index.cfm/newsroom/category/83
[Annual reports from Louisiana's Medicaid program (Bureau of Health ... on the new Medicaid Recovery Audit Contractor (RAC) program mandated by the ...]
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Reply to DeeAnna
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It could be determined by the state. Some states are more aggressive than others in recouping Medicaid monies paid out. Nursing home associations are also on board with trying to get their fees paid. As budgets at both federal and state levels tighten up even more, efforts to collect from families will become more intense. I’m not sure if I would count on getting that money. I would suggest calling your state Medicaid office and/or the insurance company.
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Reply to UsedupDIL
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The insurance money goes to the beneficiaries.
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Reply to vegaslady
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caringformypop Oct 21, 2018
Thank you so much for the response, Vegas lady! Much to navigate and it isn't ways clear.
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