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Effective: January 1, 2007 |
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19.55.30ar - Home Equity Limit Hardship Waiver (Archive) |
Archived: September 1, 2008 |
A waiver of the home equity limit may be granted by demonstrating that denial of MA payment of LTC services would result in hardship.
Hardship is defined as an imminent threat to a person’s health and well-being if MA payment of LTC services is denied. It is determined on a case-by-case basis.
Requests for a waiver of the home equity limit based on hardship must be made in writing by either:
l The client.
l The client’s authorized representative.
Documentation must be provided showing that there are no other alternatives for payment of long-term care services because there are no other resources available to pay for long-term care and one of the following conditions apply:
l The client’s application for a reverse mortgage or home equity loan has been turned down by at least two financial institutions.
l The client is a joint owner of a home and the other owners refuse to apply for a reverse mortgage or home equity loan in a joint application with the client or are unable to qualify for one.
Note: The other joint owner can not be the spouse to meet this condition.
l There is a legal barrier to the sale of the client’s ownership interest in the home or to the approval of a reverse mortgage or home equity loan.
Review the facts and documentation provided to determine whether a waiver of the home equity limit should be granted.
l Provide a decision within 30 days of the receipt of the written request, if all necessary information has been provided.
l Grant an extension if more time is needed to provide the documentation.
l Send the client and, if applicable, the authorized representative, a written notice of decision using the Notice of Action for Payment of LTC Services (DHS-4915).