Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability

2.3.3.2.6 Excess Assets

A person with one of the bases of eligibility for Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD) who is subject to an asset limit and whose countable assets exceed the asset limit may reduce their assets to qualify for eligibility. This section provides information on how a person can reduce their assets.

Reducing Excess Assets at Application

People who are applying for MA-ABD who have excess countable assets in the month of application must reduce those assets to be within their asset limit by the end of the processing period to be eligible.

Some acceptable ways to reduce assets for applicants who have excess assets in the application month include, but are not limited to, paying bills or other obligations such as health care expenses or purchasing assets that do not count toward the asset limit.

Applicants who are requesting MA for Long-Term Care (LTC) services may be subject to a transfer penalty if they reduce assets by giving them away without receiving adequate compensation. See MA-LTC Uncompensated Transfers for more information.

Applicants must verify that they have reduced excess countable assets by providing bank statements or other documents that show current asset amounts, but are not required to provide receipts.

Eligibility can begin back to the first day of the month of application if the applicant reduces excess assets within the applicable processing period.

Reducing Excess Assets in Retroactive Months

Applicants with excess countable assets in the month of application who want retroactive coverage for any of the three months before the month of the application must reduce those assets to be within their asset limit by the end of the processing period to be eligible.

Applicants with excess assets in a retroactive month may reduce their assets in the following two ways:

Retroactively designate burial funds up to $1,500 if they have not already done so. See MA-ABD Burial Contracts for more information. Applicants who designate funds for burial are required to verify the designation by a signed and dated statement.
The excess countable assets can be reduced by paying medical bills incurred in the retroactive months by the following people:
- The applicant
- The applicant’s spouse, regardless of whether the spouse is living in the household
- Dependent children under age 18 regardless of whether they live in the household
- Children under age 21 who live in the household

MA eligibility begins on the date that excess countable assets have been reduced. Medical bills beginning with the next dollar after assets have been reduced are eligible for payment. Therefore, in order to achieve coverage on the earliest possible date, applicants must pay their oldest medical bills first.

Payment of medical bills from the retroactive period must be verified. Verification may include bank statements, receipts, or confirmation from the provider. Medical bills used to reduce assets cannot be applied toward an income spenddown.

MA Eligibility for Retroactive Months When Excess Assets Have Been Spent

Applicants who no longer have excess assets in the month of application but had excess assets in the retroactive months, and who want retroactive coverage for any of the three months before the month of the application must reduce those assets to be within their asset limit by the end of the processing period. Applicants may be eligible in the retroactive month(s) on the day after their excess countable assets were within the asset limit.

Enrollees Reducing Assets to Maintain Eligibility

Enrollees whose assets go over the asset limit are no longer eligible for MA-ABD unless they reduce their excess assets. Enrollees are provided a 10-day advance notice of closing. Eligibility continues if the enrollee reduces their excess assets by the effective date of closing.

Some acceptable ways to reduce assets for enrollees who have excess assets include, but are not limited to, paying bills or other obligations such as health care expenses or purchasing assets that do not count toward the asset limit.

Enrollees who request or receive MA for Long-Term Care (LTC) services may be subject to a transfer penalty if they reduce assets by giving them away without receiving adequate compensation. See MA-LTC Uncompensated Transfers for more information.

Enrollees must verify that they have reduced excess countable assets by providing bank statements or other documents that show current asset amounts, but are not required to provide receipts.

Accrued personal needs allowances for people in long-term care facilities (LTCF) and accrued interest that go over the asset limit do not need to be reduced until the time of the next renewal.

Repayment of Minnesota Health Care Program Benefits

An enrollee may reduce assets by repaying an outstanding obligation of Minnesota Health Care Program (MHCP) benefits. Obligations to repay MA exist only if an enrollee has a calculated overpayment due to the receipt of health care benefits during a period in which the enrollee was ineligible or has an obligation required by a court as restitution in a fraud action. Agencies should not accept money from an enrollee in any other situation.

The Minnesota Department of Human Services (DHS) Special Recovery Unit (SRU) may accept payments on an MA claim related to the lien process. When notified by SRU, these payments are credited as an acceptable way to reduce excess assets.

Legal Citations

Minnesota Statutes, section 256B.056, subdivision 3(d)