MS E-500 Resources - AABD

1 MEDICAL SERVICES policy MANUAL, SECTION E E-500 Resources AABD E-500 Resources AABD E-500 Resources AABD MS Manual 10/26/15 E-500 Resources AABD Resources are generally defined as those assets, including both real and personal property, which an individual, or couple, possesses. Resources include all liquid assets as well as those assets which are not presently in liquid form. Liquid assets are those assets that can be easily converted to cash such as checking or savings accounts, certificates of deposit or life insurance policies with a cash surrender value. In order for assets to be considered as Resources , property or an interest in property must have a cash value that is available to the individual upon disposition. Countable Resources will be determined on the first day of the month.

2 When resource eligibility exists at the beginning of a month, it continues for the full month. A resource change that occurs during a month in which resource eligibility exists will not be considered for determination of countable Resources until the first of the month following the change. When an individual is ineligible at the beginning of a month due to excess Resources , ineligibility due to Resources exists for the full month. NOTE: When an individual is unaware of ownership of an asset, the asset is not counted as a resource . A discovered liquid asset will be counted as income in the month of discovery and as a resource in the months following. Non-liquid assets will be counted as a resource in the month of discovery and thereafter. Assets which have been received during the month and considered as income may not also be counted with Resources during the same month (unless the income received is given away during the month it is received - Re.)

3 MS H-323). For example, if an individual had a checking account balance of $1,950 as of June 1, the receipt of a $ SSA check during June would not cause the individual s $2,000 resource limit to be exceeded during June even if the entire check was deposited in the checking account. The individual s resource eligibility would not be affected by the receipt of income during the month. It would only be affected if the income was retained to the extent that it caused the $2,000 limit to be exceeded as of the beginning of July. SSI lump sum benefits (never counted as income) will be excluded from resource consideration for 9 full months after the month of receipt (Re. MS E-410 #3 and E-523 #6). SSA lump sum payments also have the 9 month resource exclusion, but will count as income in the month of MEDICAL SERVICES policy MANUAL, SECTION E E-501 Requests for Legal Opinions Regarding Resources E-500 Resources AABD receipt.

4 Interest earned on the excluded funds will be counted as income in the month accrued and, if retained, as a resource in the month following. Each individual must be advised of how countable Resources are determined and how resource changes can affect eligibility. NOTE: An amount up to the amount of benefits paid out by a Qualified Long Term Care Insurance Partnership policy may be used as a resource disregard when determining eligibility for Medicaid (Re. MS H-510). E-501 Requests for Legal Opinions Regarding Resources MS Manual 02/16/17 A legal opinion from the Office of Chief Counsel (OCC) will be requested when the caseworker, the Program Eligibility Coordinator, and the Program Eligibility Analysts are unsure of whether a resource should be considered or disregarded.

5 If the equity value of the questionable resource , when combined with other Resources , appears to exceed the resource limit, OCC will be contacted if: Ownership of the resource is questionable, or The applicant s right to transfer the resource is questionable. All such requests for a legal opinion will be submitted through eDoctus to The Division of Aging and Adult Services (DAAS) LTSS Support Unit according to the instructions below: 1. The cover memo will outline the issue to be determined and will include any relevant facts. Copies of any documents affecting the property such as deeds, wills and contracts must be attached. If the applicant does not have the necessary documents, he or she will be advised that it is his or her responsibility to obtain them. 2. The caseworker will scan the documents for the legal opinion request in the proper order into the eDoctus library, County Request for Medicaid Decision.

6 The proper order to scan documents into electronic record can be found on the OCC legal document review checklist. This will trigger an email message to the Program Eligibility Analysts (PEA) for the area that the county office is located in. MEDICAL SERVICES policy MANUAL, SECTION E E-502 Excess resource Determinations E-500 Resources AABD 3. The PEAs of the specified area will check the County Request for Medicaid Decision library on eDoctus to determine if the request originated in one of the counties he/she is responsible for. 4. The appropriate PEA will review the documentation based on the guidelines provided by OCC legal document checklist to ensure that the documentation is complete, in the proper order and any discrepancies have been corrected. The PEA will select the option of submitting the request to DAAS.

7 DAAS will handle all requests for LTSS categories. Non-LTSS requests will be forwarded to the DCO Medicaid Eligibility Unit for processing. 5. DAAS or DCO for non-LTSS will review and submit the request to OCC if needed. DAAS or DCO will provide an opinion on the requests that do not require an opinion from OCC. 6. Al l responses will be forwarded in an email message to the PEA and the caseworker who requested the opinion. 7. The caseworker will index the document in the client s electronic record. The DAAS or DCO Medicaid Eligibility Unit will scan the opinion into the client s electronic folder in eDoctus. E-502 Excess resource Determinations MS Manual 10/26/15 To be eligible for assistance under AABD categories the countable Resources of an individual or couple who are aged, blind or have a disability may not exceed certain limitations.

8 Refer to MS E-110 for countable resource limitations. NOTE: When one spouse enters a nursing facility (NF) and the other does not, the spousal rules at MS H-200 apply. When both spouses enter a NF, the couple s standard will apply for the month of entry, but the Resources of each will be compared to the individual standard in the month after entry into a NF. For a married couple in Waiver cases, the couple s standard will apply if both apply for Waiver services. When only one spouse applies for waiver services, the spousal rules apply. E-510 real Property MS Manual 01/01/14 real property is land, including houses or immovable objects attached permanently to land. It also includes burial plots and crypts. MEDICAL SERVICES policy MANUAL, SECTION E E-511 Evidence of Ownership E-500 Resources AABD In order for real property to be a resource , it must be convertible to cash.

9 If the individual has the right, authority, or power to liquidate the property or his share or interest in property, it is considered a resource unless otherwise excluded (Re. MS E-516). If a property right cannot be liquidated, it will not be considered a resource . Certain types of property may have special restrictions, which include the following: 1. Burial Plot - Burial Plots or crypts which are not intended for the use of the applicant/recipient or his immediate family may be a countable resource . If the deed indicates that the contract is irrevocable, the plot or crypt is not a countable resource . If any co-owner refuses to permit sale of the plot or the burial company requires the individual to move from the state in order to sell the plot, it is not a countable resource .

10 Document the file regarding restrictions with a statement from the co-owner or with a copy of the burial contract, whichever is applicable. If the deed indicates that the contract is revocable, it is a countable resource . In this case it will be necessary to contact the burial company, etc. ( , original seller of the plot) to determine the value of the specific plot. Document the file regarding value with a statement from the burial company, etc. 2. Land Held by a Member of Indian Tribe - Land which is held by an enrolled member of an Indian tribe may be excluded from Resources if it cannot be sold or transferred without the permission of other individuals, the tribe, or a Federal Agency. If permission is needed, determine whether it can be obtained. If permission to sell is granted, treat the property as a resource .