Medicaid Policy
Medicaid Policy
Effective Date: March 1, 2019
Sometimes a legal factor may make an otherwise available asset unavailable to an individual. Legal factors may include conditions limiting the individual's ability to sell an asset without the consent of joint owners. An asset in the process of being converted from one form to another, does not create a legal hinderance, even if the individual has not yet received cash from the sale of an available asset.
Applicants may have to take steps to make an asset available before becoming eligible. Recipients may have to take steps to access and asset to remain eligible.
If legal factors hinder making the asset available, it is exempt until it can be made available. (See 2 below). For example, a condition of ownership may prohibit selling the asset without the consent of both parties. In this case, the asset is exempt until the condition of ownership is changed or both parties consent to the sale.
If an asset is not legally available but can be made available by individual action, the individual must take steps to make it available. The two exceptions to this, are:
It is doubtful that reasonable actions will succeed. This should be confirmed by a knowledgeable source, such as a lawyer or financial institution.
The likely cost of making the asset available exceeds its value.
Note: If an asset is not counted based on "a" or "b" above, explain this in the case notes.
For applicants, the individual must take all reasonable steps to make the asset available before the application can be approved.
Notify the individual of the requirement to take steps to make the asset available and give the individual at least 10 days to respond.
If the value of the asset will cause the applicant to fail the resource limit, deny the Medicaid assistance unless the applicant can prove the asset cannot be made available.
If the applicant proves the asset cannot be made available at this time, exempt the asset until it can be made available.
The applicant can also refute the value of the asset by providing evidence of a different value.
For recipients the member must take all reasonable steps to make the asset available before any more assistance is issued.
Notify the member of the requirement to take steps to make the asset available and give the member at least 10 days to respond.
If the value of the asset causes the individual to fail the resource limit, close the case if the member has not verified the actions taken to make the asset available or otherwise prove that the asset is not available.
If the member does not take steps to make the asset available, or if the member does not follow through with the process, close the case.
If the recipient is taking steps to make the asset available, do not count the asset until the asset is actually available to the member.
Do not count the asset if the member proves it cannot be made available.