Resources Expanding Foundations NonMAGI Types of Resources and

Resources Expanding Foundations: Non-MAGI

Types of Resources and Data Entry Goal: To understand resource eligibility rules and processes Objectives: After this module participants will: Data enter different types of resources. Identify exempt resources. List references to aid in data entry.

Estates Life insurance policies Home Estate Accounts Annuities

Inheritance Home Estate Accounts Annuities

Inheritance Medicaid is not in the business of protecting inheritances!

Estate Recovery § Estate Recovery allows Medicaid to recoup expenses from an estate prior to any inheritance disbursements.

Estate Recovery Home Estate Accounts Annuities To Medicaid

Estate Recovery Allows for less harsh rules upfront Homes, vehicles etc.

Liquid Assets Bank Accounts Retirement Accounts Cash Items held as an investment Etc. Page 39

Liquid Asset-Data Entry

Liquid Asset-Data Entry

Encumbrances Page 41

Vehicle Exempt one if used for transportation Regardless of value Use FMV Bluebooks are guideline Page 42

Vehicle

Vehicle Page 43

Intent to Sell Exemption for vehicles and property Must be listed Client must accept reasonable offers Request updates/verification every 3 months

Real Property § § Primary Home Secondary properties Mineral rights Other income producing property Page 44

Primary Home § Exempt up to $552, 000 in equity § Must be living in home or “Intend to Return” § Exempt if Spouse or dependent relative live in home (no limit) § FMV

Secondary Property § Equity is countable § Intent to sell can be applied § Appraisals as guideline Page 44

Mineral Rights § § Land appraisal if land is owned Mineral rights only appraisal if not Often low due to extraction costs Income producing property exemption Page 45

Income Producing Property § Exempt up to $6000 § Non-business property § Business property producing a 6% return on the excluded value § Income is countable income

Real Property Data Entry Page 46

Real Property Data Entry

Burial Assets Burial plots, and irrevocable policies are exempt Additional $1500 set aside person as revocable Saves Medicaid burial costs later HCPF must be remainder beneficiary Page 47

Burial Asset

Life insurance Person (Applicant and Spouse If total face value of all policies are over $1500, all are countable. If total face value of all policies are $1500 or less, all are not countable. Page 48

Life Insurance Face value: Death benefit Cash Value: Investment component Cash Surrender Value: Amount received to ‘cash out’ the policy

Term Life Insurance Premium payments keep death benefit active (face value) No cash value No cash surrender value

Whole Life Insurance Also called Universal or Variable Premium goes to death benefit and an investment fund The investment fund is the cash value The cash surrender value is a separate amount

AF vs. Medicaid Countable for Both Counts for Medicaid only Exempt for both • Face Value over $50, 000 and • Purchased within 48 months • Face Value greater than $1500 but less than $50, 000 • Or >$50, 000 and purchased more than 48 months ago • Total Face Value $1500 or less

Life Insurance

Data Entry Practice Page 52 -63

Types of Resources and Data Entry Goal: To understand resource eligibility rules and processes Re-Visit Objectives: Can you? Data enter different types of resources. Identify exempt resources. List references to aid in data entry. Page 64