Consumer Protection Bill Headed To The House

INDIANAPOLIS — A House committee unanimously passed legislation Thursday that expands consumer protections, now reserved for older Hoosiers, to veterans and individuals with mental, physical or developmental disabilities as well.

The bill now moves to the full House for consideration.

But before the vote, the Commerce and Technology Committee added language meant to ensure Medicaid recipients can’t use life insurance or funeral trusts to hide cash from the state.

Currently, funeral trusts are considered an exempt resource if a person needs to apply for Medicaid. That’s so that they do not have to be buried in a “welfare type state,” said Sen. Sue Glick, R-Lagrange.

The funeral home or cemetery accepts an amount of money to fund or pay for specific services and merchandise that the family, or even the person themselves, can select ahead of time and those funds are deposited into a bank trust or they purchase an insurance policy and the money is held in a trust,” Glick said. “In either case, the funds are protected.”

But Glick said in some cases, the trusts have funds left over that are paid back to the family, rather than reimbursing Medicaid. She said that could let individuals put a large amount of money in the trust and have Medicaid pay for their healthcare, knowing the money would later be returned to their families.

Glick’s amendment is meant to clarify that excess money goes to the state for Medicaid reimbursement.

SB 307 also includes a provision regarding Indiana’s “Do Not Call” law. The language says that a person may not provide help or support to a telephone solicitor if the person knoed yhr “Do Not Call” law has been violated.

Caitlin Soard is a reporter at TheStatehouseFile.com, a news website powered by Franklin College journalism students.