An Act To Increase the Use of Long-term Care Insurance
Sec. 1. 22 MRSA §3174-WW is enacted to read:
§ 3174-WW. Alternative Long-term Care Benefits Program
There is established within the department the Alternative Long-term Care Benefits Program, referred to in this section as "the program," to provide alternatives for persons to insure the costs of their own long-term care and to alleviate some of the costs of long-term care being paid by MaineCare. The department shall administer the program as a part of MaineCare.
(1) A surety bond executed and issued by an insurer authorized to issue surety bonds in this State;
(2) A policy of errors and omissions insurance; and
(3) A deposit of cash, certificates of deposit or securities.
This bill establishes an alternative long-term care benefit program for those persons that qualify for long-term benefits under the MaineCare program. The bill allows persons otherwise eligible for long-term care benefits under MaineCare that own life insurance policies with face amounts exceeding $10,000 to enter into life settlement contracts in exchange for direct payments to a health care provider for long-term care benefits. The bill prohibits the Department of Health and Human Services from considering the value of the life settlement contract as an asset or resource in determining eligibility for MaineCare. The bill also establishes the conditions under which a life settlement contract may be used, requires certain disclosures to be made to MaineCare applicants and authorizes the Department of Health and Human Services to adopt rules after consultation with the Department of Professional and Financial Regulation, Bureau of Insurance.