Disregards the limitations on trusts if the person has purchased long-term-care-insurance with a coverage payout amount equal to the average cost of long-term care in the State of Rhode Island.

Plain-English Summary

This bill would change the rules around how Rhode Island's Medicaid program (which the state calls Medical Assistance) treats certain financial assets — specifically, money held in trusts — when determining whether someone qualifies for benefits. Under current law, Medicaid has strict limits on how much money a person can have in a trust before it affects their eligibility. This bill would create an exception to those limits for people who have already taken the step of purchasing private long-term care insurance.

To qualify for this exception, a person's long-term care insurance policy would need to have a payout amount at least equal to the average cost of long-term care in Rhode Island. In other words, if someone has planned ahead and bought an insurance policy substantial enough to cover typical nursing home or home care costs in the state, Medicaid would not count their trust assets against them when deciding if they qualify for assistance.

This bill primarily affects Rhode Island residents who have both set up a financial trust and purchased long-term care insurance as part of their retirement or elder care planning. It could allow these individuals to protect more of their assets while still being eligible for Medicaid if they need it. It may also serve as an incentive for people to purchase long-term care insurance coverage rather than relying solely on Medicaid. The bill has been referred to the House Finance Committee, where it will be reviewed before any further action is taken.