Long-Term Care Bill (H.5033) Signed Into Law by Governor Healey

On September 6, 2024, Governor Healey signed into law a provision that restores the viability of pooled trusts for seniors aged 65 or older, essentially repudiating the penalty rule that MassHealth put in place last March 1. The new provision is included as Section 19 of the omnibus Long Term Care bill. It modifies G.L. c. 118E, s. 28, by adding criteria for recognizing fair market value in a self-settled pooled trust for individuals aged 65 or older. Importantly, the calculation of fair market value must include amounts that are reimbursed to the Medicaid program upon the death of the beneficiary. 

The new law technically will go into effect on December 6, 2024. The new law merely codifies the recognition of facts about pooled trusts, i.e., the extent to which they show a transfer for value, and not an uncompensated gift.