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Effective: June 1, 2011 |
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19.20ar8 - Verification of Assets (Archive) |
Archived: October 1, 2011 |
Minnesota Health Care Programs may require verification of assets. This section explains when clients are required to verify assets.
Clients are responsible for providing the verification when verification is required. However, help clients to get the needed information if they are having difficulty obtaining it. Obtain the client’s written consent to request verification from a third party.
Common types of documentation to verify assets include, but are not limited to:
l Bank statements.
l Agency-initiated verification forms.
l Copies of bonds.
l Stock ownership statements.
l Copies of life insurance policies.
l Statements from insurance companies or companies providing annuities.
l Copies of burial purchase agreements.
l An estimate of fair market value from a licensed dealer.
l An estimate from a licensed appraiser.
l Contracts.
l Trust documents.
For more information on additional ways to verify assets, see the manual sections addressing specific type of assets.
Request additional information from the client if the application or renewal does not contain sufficient information to determine countable assets.
l See Obtaining Verification for policy about how to obtain verifications.
MinnesotaCare enrollees who have an asset limit (non-pregnant adults) must report assets, but may not always have to verify those assets. Review assets at application and renewal for those who are subject to an asset limit to determine if the total value of reported assets is at or below the applicable asset limit.
l Verify assets in the following two instances only:
n When a client reports or information indicates that a Continuing Care Retirement Community (CCRC) entrance fee may be available.
n When a worker’s compensation settlement causes the client to exceed the asset limit.
m Verify the amount of the worker's compensation settlement. Accept an award notice or settlement letter that documents the amount of the worker’s compensation settlement.
Note: Do not require verification of the Worker’s Compensation settlement if the applicant’s or enrollee’s total assets (including the settlement) are within the MinnesotaCare asset limit. Enter a case note to document that the Worker’s Compensation settlement amount is excluded as an asset.
m Do not verify the amount of the settlement funds the client has remaining. Accept the applicant’s or enrollee’s verbal or written statement about the amount of the settlement funds remaining.
Example:
Tim is a single adult without children applying for MinnesotaCare. He reports $17,000 in assets on his application. Included in the total are a checking account valued at $4,000 and a savings account valued at $13,000. Tim states that the savings account contains $10,000 from a Worker’s Compensation settlement. The original settlement amount was $15,000, but Tim states he used $5,000 to pay bills.
Action:
Require verification of the Worker’s Compensation settlement because it causes Tim to be over the asset limit of $10,000 for a single adult.
Tim submits a copy of the settlement letter sent to him by his attorney showing the Worker’s Compensation settlement of $15,000.
Action:
Exclude the $10,000 remaining in Tim’s savings account that is from the settlement. Count the additional $3,000 he has in his savings account and the $4,000 in his checking account. Tim’s asset total is now $7,000, which is below the MinnesotaCare asset limit. Tim is asset eligible for MinnesotaCare.
l Do not verify:
n other types of assets for clients subject to an asset limit.
Exception: Asset verification may be requested if information about a client’s assets is inconsistent with other information or documentation on file. See Inconsistent Information.
n that an asset is not available.
n excluded assets.
Note: It may be necessary to request a trust document to verify a client’s income.
l Contact the client to determine the net value of the assets if the asset total is in excess of the asset limit at application or renewal. Ask the client if any of the assets have any encumbrances not already reported. Do not require verification of encumbrances.
Clients should report changes in assets between renewals; however, do not act on these changes until renewal.
See MA Asset Verification Denial/Closure for information on how a denial or closure of MA for failure to verity assets may affect MinnesotaCare eligibility.
Example:
A married couple, Joan and Henry (ages 42 and 44 respectively), and their two minor children apply for MinnesotaCare. Joan is not pregnant. Henry works full time at the local grocery store. They report a total asset value of $56,000. Included in the asset total are one vehicle valued at $5,000, an individually owned IRA valued at $6,000, a lake cabin valued at $40,000 and a boat valued at $5,000.
Action:
Initially the asset total of $56,000 is over the asset limit for MinnesotaCare. Even after excluded assets, the vehicle used for employment and the IRA, are deducted from the asset total, the assets total of $45,000, is still over the asset limit.
Joan and Henry’s worker contacted them to check for any encumbrances on the boat and the lake cabin. There are no encumbrances on the boat. However, they have a loan for the lake cabin and still owe $28,000.
Action:
Do not require verification of the loan.
Based on this new information, the couple’s asset total is now $17,000. This total is the sum of the value of the boat ($5,000) and the equity value of the lake cabin ($40,000 FMV - $28,000 encumbrance = $12,000 equity). The asset total is now below the MinnesotaCare asset limit and Joan and Henry are asset eligible for this program.
Verify all countable assets and their encumbrances at application and renewal.
Note: Do not require additional verifications if the client provided verifications for the same assets as part of an application or review for another program within the last 30 days.
l Contact the client to determine the net value of the assets if the asset total is in excess of the asset limit at application or renewal. Ask the client if any of the assets have encumbrances not already reported. Verify any encumbrances.
l Act on asset changes reported between renewals, but do not verify until renewal.
Contact the client by phone, or in writing if unable to reach them by phone, when there are asset changes that result in ineligibility to determine if any of the assets have encumbrances not already reported. Do not verify any encumbrances in between renewals.
l Do not verify excluded assets unless verification is required to determine if the asset should be excluded.
Example:
Mortimer and Matilda apply for MA for themselves and their children. They claim two vehicles. One is excluded because it is used for employment. The equity value of the second vehicle must be counted toward the asset limit. They also report a bank account containing $5,000. They say they received this money from FEMA as a result of a presidential declared disaster.
Action:
Request verification of the equity value of the second vehicle. Do not verify the value of the excluded vehicle. Although federal payments received as a result of disaster are excluded, verify that the $5,000 came from FEMA.
l Verify the unavailability of countable assets.
Example:
Sandy applies for MA. Sandy is the beneficiary of an irrevocable trust that her grandmother established for her at the time of her death.
Action:
Request a copy of the trust document, including all amendments and attachments, to determine if any of the trust corpus is an available asset and whether or not Sandy is entitled to any income from the trust.
l Verify the reduction of assets on medical bills for a retroactive period. See Excess Assets.
l Verify assets that are deemed to a person with an asset limit, even if the assets belong to a person who is not applying for MA or who does not have an asset limit.
l For applications, verify assets as of the first day of the first month for which the client requests eligibility. Do not request verification of assets for each subsequent month unless there is reason to believe the client obtained additional assets.
Example:
George applied for MA on August 15. He requested eligibility beginning June 1. George provided verification of his assets on June 1. There is no reason to believe that George obtained any additional assets in July or August.
Action:
Accept George’s verification of the assets he owned on June 1. Do not request verification of assets owned on July 1 or August 1.
l For renewals, verify assets as of the first day of the month in which the client mails or delivers the renewal form to the county agency.
l Adults without children denied MA solely for failure to verify assets may not be eligible for MinnesotaCare or General Assistance Medical Care (GAMC). See MA Asset Verification Denial/Closure for information on how these negative actions affect MinnesotaCare and GAMC eligibility.
Follow MA Method A requirements, except verify the following assets even if they are excluded, to ensure they are assessed correctly:
l Special Needs, Supplemental Needs and Pooled Trusts.
l Annuities.
l Face value and cash surrender value of non-term Life Insurance.
l Revocable Burial Agreements.
l Irrevocable Burial Agreements.
l Annuity-funded burials.
l Life Insurance-funded burials.
l Cremation Society Agreements (CSAs).
Follow Method A or Method B depending on the person's basis of eligibility. In addition, verify:
l all assets when processing an asset assessment, regardless of whether they are excluded or unavailable.
l home equity when applying the LTC/EW Home Equity Limit.
Note: At the first annual renewal, verify that all assets owned by an LTC spouse at the time of the request for MA payment of LTC services that could be transferred to a community spouse as part of the community spouse asset allowance have been legally transferred into the community spouse's name.
Refer to the following topics for more information: