Effective: April 1, 2013
19.10 - Excluded Assets
All health care programs exclude some assets from use in calculating a person’s total countable assets. They can be excluded in whole or in part. Some of the excluded assets are excluded indefinitely while others are excluded for only a specific period of time. Some excluded assets are excluded only if identifiable from other assets.
To determine if an excluded asset must be verified, see Verification of Assets.
Follow specific manual sections for determining how to count the following types of assets: SSI and RSDI benefits, Self-Employment Excluded Assets, Self-Support Excluded Assets, Liquid Assets, Retirement Funds and Plans, Real Property, Homestead Real Property (including proceeds from the sale of a homestead), Property Agreements, Vehicles, Annuities, Trusts, Burials and Life Insurance, Student Financial Aid, Tribal Payments, CCRC Entrance Fees, and Household Goods and Personal Effects.
Assets Without Identification Requirements.
Assets With Identification Requirements.
Additional Excluded Assets for MinnesotaCare, MA Method A.
Additional Excluded Assets for MA Method B, MA-EPD and Medicare Savings Programs (MSP).
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Some assets are excluded for all health care programs, but must be "identifiable” to be excluded for Method B, and MSP. See Assets With Identification Requirements. Follow these policies when determining if an asset is identifiable:
n Excluded funds kept in a separate fund are identifiable.
n Excluded funds that are not kept physically apart from other funds (such as, in a separate bank account) may still be identifiable. If excluded assets are co-mingled with non-excluded funds, identify the excluded assets by obtaining a complete history of account transactions back to the initial deposit of excluded funds. Use the individual's own records if possible. Accept the individual's allegation regarding the date and amount of a deposit of excluded funds if it agrees with the evidence on file for receipt of the funds.
n When withdrawals are made from an account with co-mingled funds in it, assume the non-excluded funds are withdrawn first, leaving as much of the excluded funds in the account as possible. If excluded funds are withdrawn, the excluded funds left in the account can be added to only by: deposits of subsequently received funds that are excluded under the same provision; and excluded interest. If interest on the excluded funds is excluded, the percent of an interest payment to be excluded is the same as the percent of funds in the account that is excluded at the time the interest is posted. The excluded interest is then added to the excluded funds in the account.
Assets Without Identification Requirements
Exclude the assets listed below for all Minnesota Health Care Programs (MHCP) unless otherwise noted.
Note: Exclude these assets indefinitely unless another time period is indicated.
n Adoption Assistance payments. Payments made under state or federal law for adoption assistance as assets in the month of receipt and thereafter.
n Accrued Interest. Accrued interest on assets if any excess is properly reduced at eligibility redetermination.
n Alaska Native Claims Settlement Act (ANCSA) payments. The following payments made pursuant to the ANCSA (P.L. 100-241) are excluded:
m Cash received from a native corporation (including cash dividends on stock received from a native corporation) to the extent it does not exceed $2,000 per individual per year.
m Stock (including stock issued or distributed by a native corporation as a dividend or distribution on stock).
m A partnership interest.
m Land or an interest in land (including land or an interest in land received from a native corporation as a dividend or distribution on stock).
m An interest in a settlement trust.
n Appeal Payments. Payments resulting from an appeal of public assistance benefits. Exclude these payments as assets in the month received and for three months after the month of receipt.
n Certain Assets Owned by American Indians. Exclude certain assets owned by an individual who has provided verification of their American Indian status.
In addition to the items excluded under the General Provisions, exclude the following as assets for American Indians:
m Real property Land, all buildings, structures, improvements, or other fixtures on it belonging or pertaining to the land, including mobile or manufactured homes attached to a permanent foundation on land owned by the client, all mines, minerals, fossils, and trees on or under it, and life estate and remainder interests., that is located on Indian land, or land held in trust, subject to restriction or supervision by the Secretary of the U.S. Department of the Interior. Indian land includes:
q A federally-recognized reservation, pueblo or colony.
q Former reservations located in Oklahoma.
q Alaska Native regions established by the Alaska Native Claims Settlement Act.
q Indian allotments on or near a reservation as designated by the Bureau of Indian Affairs of the Department of the Interior.
q Property located within the most recent boundaries of a prior federal reservation.
m Ownership interests in rents, leases, royalties, or usage rights related to natural resources (extraction of natural resources, harvesting timber, plants, animals, fish and shellfish).
m Ownership interests in or usage rights to items that have unique religious, spiritual, traditional, or cultural significance or rights that support subsistence or a traditional lifestyle according to tribal law or custom.
Note: If an excluded asset is sold or exchanged, the proceeds from the sale or exchange may not be excluded. Count the value of the new asset beginning the month following the month in which the original asset was sold or exchanged if it is not excluded for another reason.
n Cobell Settlement for American Indians. Payments made as income in the month received and as an asset for one year from the date of receipt. Exclude payments whether issued as lump sums or as periodic payments. This exclusion applies for 12 months beginning with the month of receipt and applies to all members of the household.
Note: Accept the verbal or written statement of applicants and enrollees of the date and amount of the excluded settlement payment.
n Crime Victim payments. Payments made to crime victims to compensate them for losses resulting from the crime.
n Disaster Assistance. Payments issued pursuant to a presidential declaration of disaster or emergency. These payments may be made by the federal government, including, but not limited to, grants from the Federal Emergency Management Agency (FEMA), states, local governments and disaster relief organizations such as the Red Cross and Salvation Army. Count disaster and emergency assistance payments that are not issued pursuant to a presidential declaration of disaster, unless they can be excluded under another provision.
n Earned Income Tax Credits (EITC).
m MinnesotaCare, Method A: Exclude in the month of receipt and the next month.
m Method B: Exclude in the month of receipt and the next nine months.
n Federal Tax Refunds. Federal tax refunds received on or after January 1, 2010, through December 31, 2012, for a period of twelve months from the month of receipt. If the client received a federal tax refund, reduce the client’s asset total by the amount of the refund regardless of whether the client has actually retained the refund. Accept the client’s statement as to the amount of the refund. Do not require the client to verify the amount of the refund.
Exception: Do not exclude federal tax refunds when determining the Community Spouse Asset Allowance in an asset assessment.
n Filipino Veterans Equity Compensation (FVEC) payments. Payments made to certain veterans under the Filipino Veterans Equity Compensation (FVEC) fund.
Exception: Do not exclude these payments as assets for MinnesotaCare for Adults Without Children.
n Foster Care payments. Payments made under state or federal law for foster care assistance as assets in the month of receipt and thereafter.
n Gifts to Children with Life Threatening Conditions. Payments made by tax-exempt organizations to or for the benefit of children under age 18 with life-threatening conditions may be excluded. These gifts include gifts to the child's parents for the child's benefit and indirect benefits to other family members, such as payment to accompany the child on a trip.
Note: Ask if the organization is a Section 501(c)(3) organization under the Internal Revenue Code of 1986 and is exempt from taxation under Section 501(a) if the tax-exempt status is unclear. Accept the organization's statement that the gift was made based on a child's life-threatening condition.
m Exclude any in-kind gift not converted to cash.
m Count as income the value of an in-kind gift converted to cash the month converted. Count as an asset any cash remaining in the following months.
m Exclude cash gifts up to $2,000 in any calendar year. Count as an asset the amount of total cash payments that exceed $2,000 each year.
Note: Multiple cash gifts in the same calendar year are added together and up to $2,000 of the total is excluded, even if none of the cash gifts exceed $2,000 individually.
n I-35W Bridge Collapse payments. Exclude the following payments made to survivors of the I-35W bridge collapse:
m Payments from the I-35W Emergency Hardship Relief Fund. These payments were limited to $20,000 per claimant for lost wages due to physical injury or death.
m Payments from the Catastrophic Survivor Compensation Fund. Settlement agreements were limited to $400,000, but survivors may also have received supplemental payments for uncompensated medical expenses and to pay for loss of future income or earning capacity.
n Income in the Month of Receipt. Income is not counted as an asset in the month of receipt. Income retained past the month of receipt may be counted as an asset.
n James Zadroga 9/11 Health and Compensation Act of 2010. Payments made to a worker or volunteer, or if deceased, his or her heir, under the World Trade Center (WTC) Litigation Settlement or distributed by the WTC Captive Insurance Company. These payments are considered disaster assistance.
n Tax Rebates. State and federal tax rebates as assets in the month received and thereafter.
Assets With Identification Requirements
Exclude the assets listed below for all Minnesota Health Care Programs (MHCP).
For Method B, MA-EPD and MSP, the assets below may be held in the same account as non-excluded funds, but the funds must be identifiable from the non-excluded funds to maintain the exclusion.
Note: Exclude the assets listed below indefinitely unless another time period is indicated.
n Agent Orange Settlement Fund payments. Payments made in connection with the case of In re Agent Orange Product Liability Litigation. Payments came from a fund created by manufacturers of Agent Orange who agreed to pay into a settlement fund. Payments began in March 1989. Qualifying veterans received at least one payment a year for the life of the program. Qualifying survivors of deceased veterans received a single lump sum payment. The settlement fund is now closed as all funds have been distributed.
n Blood Product Settlement payments. Payments made pursuant to the class settlement of Susan Walker v. Bayer Corp., et al, and to the release of any claims in that case that were entered into in lieu of class settlement.
n Child Tax Credit. Child Tax Credit (CTC) refunds or payments. Exclude for the month of receipt and:
m MinnesotaCare, MA Method A: The month following the month of receipt.
m MA Method B: Indefinitely.
n Class Action Settlement agreement in Jensen et al v. Minnesota Department of Human Services, et al. Exclude payments received by class members. Deduct funds received under this agreement from countable assets at the time of application and at each renewal.
n Corporation for National and Community Service (CNCS) payments. Payments to volunteers, including the following payments authorized under the Domestic Volunteer Services Act:
m AmeriCorps VISTA.
m University Year for VISTA (UYV).
m Urban Crime Prevention Program.
m Special Volunteer Programs under Title I.
m Senior Corp:
q Retired Senior Volunteer Program (RSVP).
q Foster Grandparent Program.
q Senior Companions.
m Demonstration Programs under Title II.
n Federal Relocation Assistance payments. Federal reimbursements from Title II of the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, the Housing and Redevelopment Act of 1965, or the Housing Act of 1965. This assistance is paid when the government requires an individual to move.
n Food and Nutrition Program payments. This includes assistance provided by:
m Programs established under the Child Nutrition Act. This includes the Women, Infants, and Children Nutrition Program (WIC) A federal program authorized by the Child Nutrition Act of 1966 to provide nutritious food and nutrition education to low-income pregnant and postpartum women and their children. and federally funded school breakfast and milk programs.
m National School Lunch program.
m Supplemental Nutrition Assistance Program (SNAP).
m Minnesota Food Assistance Program.
m Minnesota Grown Supplemental Food Program.
n Individual Development Accounts (IDA). Federal and non-federal matching funds deposited into Individual Development Accounts.
n Japanese and Aleutian Restitution payments. Reparation payments to certain United States citizens of Japanese ancestry and resident Japanese aliens and certain eligible Aleuts under Public Law 100-383.
n Low Income Home Energy Assistance Program (LIHEAP) payments. Federal block grant that provides funds to the State for energy assistance (including weatherization) to low income households.
n Nazi Persecution payments. These include:
m Austrian Reparation payments (also known as Austrian Social Insurance payments). Payments based, in whole or in part, on wage credits granted under Paragraphs 500-506 of the Austrian General Social Insurance Act.
m German Reparation payments.
m Netherlands Act (WUV) payments.
m Other payments received as a result of being a victim of Nazi persecution.
n Radiation Exposure Compensation Act payments. Payments made by the federal government under the Radiation Exposure Compensation Act (Public Law 101-426) to certain individuals (or their survivors) who were exposed to radiation from government nuclear testing and uranium mining.
n Ricky Ray Hemophilia Relief Act payments. Settlements to hemophiliacs under the Ricky Ray Hemophilia Relief Act of 1998.
n Veterans’ Children with Certain Birth Defects payments. Payments made to children of Vietnam or Korean veterans born with spina bifida, or payments made to the children of women Vietnam veterans if they have certain birth defects.
n Vietnamese Commando Compensation Act payments. Payments by the Secretary of Defense to people captured and interned by North Vietnam.
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Additional Excluded Assets for MinnesotaCare and MA Method A
In addition to the items excluded under the General Provisions, exclude the following as assets for MinnesotaCare and MA Method A:
l Court-Ordered Settlements. Court-ordered settlements up to $10,000. Exclude the first $10,000 per household indefinitely.
n Settlement funds do not have to be held in a separate account or identifiable from other assets.
n Count as an asset any amount over $10,000 if it is legally available to the applicant or enrollee. See Availability of Assets.
Note: See below for court-ordered workers’ compensation settlements.
l Home Improvement Loans. Home Improvement loans from the Minnesota Housing Finance Agency for nine months after the month of receipt.
l Proceeds from the Sale of a Homestead. Proceeds from the sale of a homestead for six months after the month of receipt. The proceeds must be kept in a separate account and the intent is to use the proceeds to buy another home.
l Real Estate Taxes and Insurance. Money held to pay real estate taxes or insurance by a homeowner. To meet the exclusion the money held must be held in a separate account and be used to pay taxes or insurance at least twice a year.
l Reimbursements for Property. Funds received to repair or replace assets. Exclude the funds for three months after the month of receipt. These funds are excluded if the following three requirements are met:
n Payments can be identified.
n Payments are made by public agencies, insurance companies, court order, or solicited through a public appeal.
n The funds are held in escrow.
l Worker’s Compensation Settlements.
n MinnesotaCare: The full amount of Worker’s Compensation settlements for MinnesotaCare whether or not they are court-ordered. Verify the settlement before excluding it when total assets would otherwise exceed the MinnesotaCare asset limit. The settlement does not have to be kept in a separate account.
n MA Method A: Court-ordered Worker’s Compensation settlements for MA Method A. The asset exclusion is limited to settlements up to $10,000. See Lump Sum Income for information on counting Worker’s Compensation settlements towards income.
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Additional Excluded Assets for MA Method B, MA-EPD and Medicare Savings Programs
l Clinical Trial Participation payments. Exclude the first $2,000 a person receives during a calendar year as compensation for participation in a clinical trial that involves the research and testing of medical treatments for a rare disease or condition. In order to qualify for the exclusion, the clinical trial must have been reviewed and approved by an institutional review board. This exclusion will be valid until October 5, 2015.
Note: The compensation does not need to be identifiable to be excluded.
l Clothing and Personal Needs Allowance. Accumulation of the clothing and personal needs allowance The amount of monthly income institutionalized clients may keep or receive for their day-to-day expenses. between annual renewals that result in excess assets for people in long-term care facilities if the excess amount is properly reduced to the asset limit at each annual renewal.
l Lump Sum Payment of RSDI and SSI. Retroactive lump sum payments of RSDI and SSI Income.
n Exclude for the month of receipt and nine months following the month of receipt.
n Past-due SSI benefits deposited into a dedicated financial account and any accrued interest or other earnings on such an account are excluded from assets indefinitely. For any month that funds other than accrued interest or other earnings on the account are commingled in this account, the exclusion does not apply to any funds in the account.
Exception: Funds, other than past-due benefits, required by a financial institution to open the dedicated account may be commingled in the account, but only until the end of the month following the month that the past-due benefits are paid. However, these funds other than past-due benefits in the account are not excluded from resources.
n Follow Supplemental Needs Trusts policy if the lump sum payment is issued under the Sullivan vs. Zebley decision, and is used to fund a supplemental needs trust.
l Proceeds from the Sale of a Homestead. Exclude the proceeds from the sale of a homestead if an individual:
n plans to use the proceeds to buy another homestead, and
n does so within three full calendar months of receiving the funds.
Note: If the individual receives the proceeds through a contract for deed or other property agreement, exclude the contract or other property agreement if the individual:
m plans to use the entire down payment and the entire principal portion of a given installment payment to buy another homestead, and
m does so within three full calendar months of receiving the down payment or installment payment.
l Real Estate Taxes, Insurance and Upkeep. Funds used to meet real estate tax, insurance, and upkeep expenses for real property that are held in a separate account.
l Reimbursements for Assets. Funds to replace lost, stolen, damaged, or destroyed assets. Exclude for the month of receipt and nine months thereafter.
Note: Continue to exclude the funds for up to nine more months if the client tries to replace the assets during that time, but cannot do so for good reason.
l Representative Payee Misuse payments. Exclude restitution payments of SSI, RSDI and Special Veterans Benefits for the Elderly due to representative payee misuse as an asset for nine months if retained after the month of receipt.
l State Annuities for Certain Veterans. A State annuity paid by a State, to a person, and/or a person’s spouse, on the basis of the State’s determination that the person is a veteran and is blind, disabled, or aged, is excluded from resources beginning with the month following the month of receipt and every month thereafter. These annuities are excluded under the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act).
Note: A State annuity payment is not a benefit issued by the Department of Veterans Affairs, such as VA compensation or VA pension.
Note: Minnesota does not currently issue annuities that would qualify for this exclusion, but other states may.
l State and Local Relocation payments. Relocation assistance is paid when the government requires an individual to move. Relocation payments from a state or local government are excluded for nine months. To be excluded these payments must be comparable to assistance provided under Title II of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970.
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Exclude assets listed in General Provisions and MA Method B, MA-EPD and Medicare Savings Programs.
In addition exclude the following:
l Medical Accounts. Medical expense accounts, un-reimbursed medical accounts and flexible spending accounts set up through an employer.
Note: Whether the account is funded by employee salary deduction, by the employer, or both is not a factor in excluding the expense account.
l Retirement Funds. Retirement funds owned by the applicant/enrollee such as IRAs, 401(k) plans, 403(b) plans, Keogh plans, and other individually owned pension and retirement funds.
l Spouse's assets.
Continue to exclude these assets if an MA-EPD enrollee stops working for any reason when determining eligibility for regular MA for up to 12 months after the person loses MA-EPD status because they stopped working.
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