IL HB4979

Allows life insurance policy owners to make irrevocable assignments of their policy benefits to funeral homes for prepaid funeral or burial contracts, with insurance companies required to notify both the funeral home and policy owner within 15 business days of receiving the assignment form

Increases the exempt amount for irrevocable prepaid funeral or burial contracts from $5,874 to $7,248 for Medicaid eligibility purposes, with annual adjustments for Consumer Price Index increases; burial space purchases remain exempt regardless of value

Establishes a priority payment structure for life insurance proceeds upon death: first to the funeral home for contracted services and goods, second to the State of Illinois for medical assistance reimbursement, and third to any secondary beneficiary or the decedent's estate

Requires funeral homes receiving irrevocable assignments to maintain separate non-interest bearing accounts for insurance proceeds, keep detailed ledgers, and report annually to the Comptroller with insured names, policy numbers, contract amounts, and policy values

Permits applicants to purchase exempt prepaid funeral or burial contracts using available resources at any time before a final Medicaid eligibility determination, and requires the Department of Healthcare and Family Services to seek federal approval for implementation by January 1, 2023