Can a nursing home refuse care if the patient has a life insurance policy over $10,000?

  • by Shae Wolf
  • Apr 17,2017
  • 7 answers

The nursing home says patients can't have a life insurance policy over $10,000, my father has $60,000 policy that he wishes to leave me & my family for taking care of him. I have been taking care of my father for over 12 years & until recently he has lived with me, but his health has taken a turn & I can no longer care for him by myself & need a nursing home to get the care he needs. Can they refuse to give him care if he has this policy? Can they make me lose the policy or take it from me?


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Insurance Answers (7)

mbrcatz 3 months ago

I think you're misunderstanding things. That whole "life insurance" bit, is only if you're trying to get welfare to PAY for the nursing home.
As long as you are willing to pay the $7000 a month yourself, the nursing home will most likely still take the patient. But WELFARE makes you spend down the assets - including life insurance, bank accounts, the house, etc - if you want WELFARE to pay for it.

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StephenWeinstein 4 months ago

If you will be paying for the care yourselves, using only your own money and his own money, with not even a penny of help from the government, then the life insurance should not be a problem.
However, if the government Medicaid program will be paying anything, even just one dollar, then its rules must be followed. They cannot provide any care at government expense until his personal assets are sufficiently depleted. It's not merely that they "can" refuse. They MUST refuse. It's against the law for them not to refuse.

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Insurance Pickle.com 4 months ago

Medicaid requirements are black and white. If there is cash value, you should be able to purchase the policy and use those funds for the care. There are look back periods for transferring it, but if you provide the cash the cancelling the policy would provide, you'd think they'd be ok with that.

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Casey Y 4 months ago

Here is the issue. He wants to "leave a little something to his kids," correct? Well, you cannot do that AND expect the government (meaning the taxpayers) to pay for their time in a nursing home.
So, either get rid of the life insurance (if there is a cash value, that is an asset and needs to be included when applying for Medicaid) or pay cash at another nursing home...a lot of cash.

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Ricki 4 months ago

What difference does the life insurance policy have?

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shipwreck 4 months ago

Ask if you can be the owner of the policy instead. It may be whole life or universal life so has a cash value. He may be the owner and the insured but if you get the policy as owner it will still insure his life with you beneficiary.
The only reason I can see they won't accept him with life insurance is if he is on Medicaid so can't own large assets. If he is private pay they have no reason to look at his financials.

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Zarnev 4 months ago

Shipwreck is correct in stating that they won't accept him if he is on Medicaid, meaning that the state welfare system is paying for the care.
If he is paying for his care either through his own funds or with a Long Term Care Insurance policy the life insurance won't matter.
However, it is considered welfare fraud if he tries to transfer ownership to anyone else unless that transfer happened more than 60 months before needing the care.

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