All Medicaid Programs |
Obsolete Policy |
General Information
The equity value of a vehicle is determined by using the average trade in value (per NADA book, nada.com, or electronic interfaces) and comparing that amount to the amount still owed on the vehicle. If the value of the vehicle exceeds the amount owed, that amount is the equity value. A leased vehicle is not an asset to the lessee.
The vehicle the individual claims is used for transportation can be excluded under the following policy even if it is not currently licensed. When the vehicle the individual wants excluded is either not street legal or is not the type of vehicle usually used for regular transportation, the client must explain how the vehicle is used as regular transportation. Document its use. For example, an individual living in a mountainous area uses a 4-wheeled ATV to travel to the closest community for groceries and other needs. If the ATV is her only vehicle, or is the vehicle with the highest equity value, exclude the ATV. Evaluate each case based on the facts of the person's situation.
A vehicle may include a car, truck, motorcycle, boat, snowmobile, animal-drawn carriage, or even an animal. The client must state that the vehicle to be excluded is being used for transportation of the client, spouse or household member.
A vehicle normally used for transportation that is temporarily not operable can be the excluded vehicle.
A vehicle that has been junked, meaning the client does not intend to repair it, cannot be excluded.
A vehicle that is used only for recreational purposes cannot be the excluded vehicle. For example, do not exclude a boat used for recreation.
Medically Needy Family, Child and Pregnant Woman
Exclude up to $1,500 of the equity value of one motor vehicle used for regular transportation for the household. Count any equity value in excess of $1,500 towards the household’s asset limit.
Aged, Blind, Disabled and Long Term Care
Exclude one vehicle per household regardless of its value that is used for transportation for the client, the client's spouse or a member of the client's household. If the client owns more than one vehicle and both are used for transportation, exclude the vehicle with the highest equity value.
After excluding one vehicle, count the equity value of all other vehicles toward the asset limit. The equity value is the current market value of the vehicle minus any encumbrances against the vehicle.
For the Medicaid Work Incentive Program exempt a second vehicle that is necessary for employment of a spouse or child in the household who works. If the individual later becomes ineligible for the MWI program, but still qualifies for another A, B or D category Medicaid program, continue to exclude the second vehicle if it is still being used by a spouse or child in the home for employment. This is a lifetime exception. This exclusion ends if the spouse or child stops working.