AN ACT DISREGARDING THE CASH VALUE OF LIFE INSURANCE POLICIES IN ELIGIBILITY DETERMINATIONS FOR CERTAIN PUBLIC ASSISTANCE PROGRAMS.

This bill modifies how life insurance policies are counted when determining eligibility for certain public assistance programs in Connecticut. It requires that the cash value of life insurance policies be excluded from asset calculations for Medicaid, cash assistance, state supplement, and temporary family assistance programs, provided the policies are not used to disqualify institutionalized individuals from Medicaid. The change applies to individuals and families applying for these programs, allowing them to retain life insurance cash value without risking their benefits. The legislation takes effect on July 1, 2026, and aligns state rules with federal law where permissible.