Are insurance policies considered assets as far Title 19 reimbursement?

After the death of a person who has received Title XIX funded medical assistance, the law requires that the individual's assets be used to provide repayment to the Iowa Department of Human Services (IDHS.)

Estate recovery affects recipients of Title XIX funded medical assistance who are: 55 years of age or older at the time they receive medical assistance, or under the age of 55 and a resident of a care facility who cannot reasonably expect to return home.

Proceeds from life insurance policies are generally considered the assets of the named beneficiaries. However, proceeds are considered recoverable after higher priority expenses are paid when the estate is the beneficiary, or when an insurance policy is assigned to a funeral home.

Repayment can be waived if: there is a surviving spouse; there is a child of the recipient who has a disability or is blind, or is under the age of 21; or collection of the debt would cause undue hardship.

Here is a link to a site that will explain further: http://www.ime.state.ia.us/Members/EstateRecovery.html