{"data":{"id":"us-ky/krs-205.631","jurisdiction":"us-ky","citation":"KRS 205.631","heading":"Life settlement proceeds for long -term care services not considered as","body":"resource or asset for Medicaid eligibility -- Notice of exhaustion of proceeds --\nMedicaid and applied income payments to begin immediately upon exhaustion\nof life settlement proceeds -- Administrative regulations.\n(1) (a) To the extent allowable under state or federal law, the proceeds of a life\nsettlement received pursuant to KRS 304.15 -726 shall not be considered as a\nresource or asset in determining a Medicaid applicant's or recipient's eligibility\nfor Medicaid and shall only be used as allowed for long -term-care services in\naccordance with KRS 304.15-726.\n(b) No state or federal Medicaid funds may be used for the recipient's care until\navailable proceeds from the life settlement  are utilized for the recipient's care,\nexcluding the amount retained for final expenses in accordance with KRS\n304.15-726.\n(c) The recipient, as defined in KRS 304.15 -726, shall provide notice, in a\nmanner prescribed by the cabinet, that the life settleme nt proceeds in the\nirrevocable account established pursuant to KRS 304.15 -726 are exhausted or\nwill become exhausted on a specified date.\n(2) The cabinet shall ensure that Medicaid and applied income payments shall begin on\nthe day following exhaustion of  the life settlement proceeds if notice is provided to\nthe cabinet as required by subsection (1)(c) of this section.\n(3) The cabinet may promulgate administrative regulations defining a service or support\ndeemed a long-term-care service for the purposes of  KRS 304.15-726. The cabinet\nshall promulgate an administrative regulation prescribing the manner in which a\nrecipient, as defined in KRS 304.15 -726, shall provide notice to the cabinet in\naccordance with subsection (1)(c) of this section.\n(4) The cabinet shall provide to all applicants as part of the application for enrollment\nin the Medicaid program:\n(a) Written notice of the options provided in KRS 304.15-726; and\n(b) Information about options that do not allow a life insurance policy to be\nconsidered a s an asset or resource in determining eligibility for medical\nassistance.\n(5) The cabinet shall provide information about the options in KRS 304.15-726 to other\nstate and local, public and private agencies and organizations in cooperation with\none (1) or more nonprofit organizations, pursuant to an agreement between the state\nand each nonprofit organization. Costs for materials and distribution of information\nrequired by this subsection shall not be the responsibility of the state, unless\nrequired by law.","path":["KRS Chapter 205"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43255","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:04Z","sha256":"ea42b70678f8cb75bcd66f123d654228020832d9b3882ad5dcc2a596385cbb66","source_id":"us-ky","stale":false,"prev":"us-ky/krs-205.630","next":"us-ky/krs-205.6310"},"notice":"GroundRules: Original legal text. Not legal advice."}