Medicaid Policy
Medicaid Policy
No Previous Policy
Exempt income (both cash and in-kind) from any source given to an individual to replace or repair a lost, damaged, or stolen exempt asset, including payments for temporary housing if the individuals home is damaged or destroyed. If the individual intends to use the money to replace or repair the asset, or to purchase temporary housing in the case of money received for that purpose, the money, and interest on the money, is exempt as a resource for nine (9) months beginning the month after it is received.
The 9-month limit can be extended if the individual has good cause for not repairing or replacing the resource. The Director or designee may grant an extension for a maximum of another nine months. Document the extension. To be eligible for this extension, three conditions must be met:
1. The individual has been unable to replace or repair the asset because of circumstances beyond his control.
2. The individual still intends to use the money to replace or repair the exempt asset.
3. The total amount of time allowed for the individual to replace or repair the asset cannot exceed 18 months.
If the individual received money for temporary housing and it has not all been used at the end of nine months, the above three conditions must be met in regard to the home. Then the individual can be granted an extension for a maximum of another nine months for the payments received to pay for temporary housing.
Count any of the funds remaining as a resource to the individual at the end of the nine-month exclusion period, or if the 18-month exclusion period in the case that an extension was granted.
Catastrophe Declared a Major Disaster by the President of the United States
An individual can receive an extension to the resource exclusion described above up to an additional 12 months under the following circumstances:
1. The damaged or destroyed exempt resource was geographically located within an area that is declared a major disaster area under an order from the President, AND
2. The individual intends to repair or replace the exempt resource, AND
3. The individual demonstrates good cause why he or she has not been able to repair or replace the excluded resource within the 18-month period defined above.
In no case will the resource exclusion period exceed 30 months beginning the month after the funds to repair or replace the exempt resource are received.
Count any remaining funds as a resource to the individual at the end of the additional exclusion period granted to the individual, and at the latest, in the 31st month after the month the funds were received.