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Effective: December 1, 2006 |
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19.10ar1 - Excluded Assets (Archive) |
Archived: April 1, 2009 |
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 kept separate or identifiable from other sources.
To determine if an excluded asset needs to be verified, see Verification of Assets.
Excluded Assets - General Provisions.
MinnesotaCare, MA Method A and GHO.
The following definitions used in this manual section may be unfamiliar.
Individual Development Account (IDA) .
An IDA is a special bank account that helps an individual save for education, the purchase of a first home, or to start a business. Contributions are matched with money from special funds called ”r;Demonstration Project” money. Eligible individuals must be working and either receiving TANF or have low income/assets.
Medical expense accounts are similar to un-reimbursed medical accounts and flexible spending accounts. These accounts allow employees to set aside pre-tax dollars to be used to reimburse the employee for qualified medical expenses not covered by the employer’s health plan.
Excluded Assets - General Provisions
Exclude the following assets for all health care programs:
l Household and personal goods, such as pets, furniture, clothing, jewelry, appliances, and other tools and equipment used in the home.
l The homestead is excluded. It can be real or personal property. Specific homestead information, for either real or personal property, can be found in Homestead Real Property.
l Income in the month of receipt.
l The following income from special funding sources as an asset for the time period indicated:
n Payments made to people because of their status as victims of Nazi persecution. This includes reparation payments the Federal Republic of Germany makes to certain survivors of the Holocaust. They may be monthly payments or a lump sum payment. Exclude these payments as assets in the month received and thereafter.
n 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 Payments made under state or federal law for foster care and adoption assistance as assets in the month of receipt and thereafter.
n Disaster relief funds paid by state and local governments and disaster relief organizations such as Red Cross and Salvation Army as assets in the month of receipt and thereafter.
n State and federal tax rebates as assets in the month received and thereafter.
n Exclude Netherlands' Act (WUV) payments as assets in the month of receipt and thereafter.
l Certain federal payments are also excluded as an asset. The manner in which these funds are retained and what method of asset calculation is being used determines if the federal payment is excluded.
n Method A and MCRE: Funds from federal payments must be held in a separate account from non-excluded funds to maintain the exclusion.
n Method B: Funds from federal payments may be held in the same account as non-excluded funds but the federal funds must be identifiable from the non-excluded funds to maintain the exclusion.
l Exclude the following federal payments as assets, following the appropriate method:
n Low Income Energy Assistance Program (LIHEAP) payments.
n Payments for tribal land claim settlements listed in Tribal Land Settlements and Trusts.
n Benefits from the Women, Infant, and Children (WIC) nutrition program.
n Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970.
n Payments received from youth incentive entitlement projects and youth community conservation and improvement projects.
n Reparation payments to Aleut people and people of Japanese ancestry under Public Law 100 383.
n Agent Orange payments to veterans and their dependents.
n Payments made under the Radiation Exposure Compensation Act (Public Law 101 426).
n Payments made by federal agencies under a presidential declaration of disaster including, but not limited to, individual and family grants from the Federal Emergency Management Agency (FEMA).
n Title VII, Nutrition Program for the Elderly funds.
n VISTA payments made to volunteers (not permanent staff salaries).
n Accrued interest on assets if any excess is properly reduced at the eligibility recertification.
n Payments from the Vietnamese Commandos Compensation Act.
n Blood Product Litigation settlement payments.
n Settlements to hemophiliacs under the Ricky Ray Hemophilia Relief Act of 1998.
MinnesotaCare, MA Method A and GHO
In addition to the items excluded under the Excluded Assets - General Provisions, exclude the following as assets for MinnesotaCare, MA Method A and GHO:
l 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.
l Retirement funds or pension funds that are individually owned or employer-based, including but not limited to IRAs, 401(k) plans, 403(b) plans, and Keogh plans.
Note: Continue to exclude funds left in the employer’s plan when the employee leaves the employer.
l Capital or operating assets of a trade or business up to $200,000. For specific details see Self-Employment Excluded Assets.
l 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 have the expenses paid out at least twice a year.
l 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 If payments are made by public agencies, insurance companies, court order, or solicited through a public appeal.
n The funds are held in escrow.
l Student financial aid sources are excluded indefinitely. Excludes the funds from these sources:
n Pell Grants.
n SEOG.
n Perkins Loans.
n Student Educational Loan Funds.
n Guaranteed Student Loans.
n Minnesota State Student Loans.
n State Student Incentive Grants.
n Minnesota State Scholarships and Grants.
n Federal College Work-Study funds.
n Any other financial aid funded in whole or in part by Title IV.
l School loans, grants, or scholarships not listed above. Exclude as assets until the month following the last month the student is enrolled in classes. See Student Financial Aid Income.
l 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 Home Improvement loans from the Minnesota Housing Finance Agency for nine months after the month of receipt.
l Earned Income Credit payments in the month of receipt and the next month.
In addition to the items excluded in the Excluded Assets - General Provisions, exclude the following as assets for Method B and GAMC:
l Payments made to volunteers under the Domestic Volunteer Service Act of 1973 as stipends or reimbursements of out of pocket expenses.
l Older Americans Act benefits. Do not exclude wages received from this source.
l Student financial aid sources are excluded until the month following the last month the student is enrolled in classes. These funds must be identifiable from other non-excluded funds. Excludes the funds from these sources:
n Pell Grants.
n SEOG.
n Perkins Loans.
n Student Educational Loan Funds.
n Guaranteed Student Loans.
n Minnesota State Student Loans.
n State Student Incentive Grants.
n Minnesota State Scholarships and Grants.
n Federal College Work-Study funds.
n Any other financial aid funded in whole or in part by Title IV.
n Other educational funds.
l Funds to replace lost, 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 The accumulation of the clothing and personal needs allowance for people in long term care facilities if any excess assets are properly reduced at the eligibility recertification.
l Funds used to meet real estate tax, insurance, and upkeep expenses for real property that are held in a separate account.
l Retroactive lump sum payments of RSDI and SSI Income.
n Exclude for the month of receipt and:
m For six months if received before March 2, 2004.
m For nine months if received on or after March 2, 2004.
n The exclusion exists even if the lump sum was deposited in a separate dedicated account for the medical, health, educational and disability related needs of a child.
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 Exclude 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 Earned Income Tax Credit (EITC) refunds or payments. Exclude for the month of receipt and:
n If received before March 2, 2004, exclude as an asset for one month.
n If received on or after March 2, 2004, exclude as an asset for nine months.
l Child Tax Credit (CTC) refunds or payments. Exclude for the month of receipt and:
n If received before March 2, 2004, exclude as an asset for one month.
n If received on or after March 2, 2004 continue to exclude.
l Proceeds from the sale of a homestead for three months if the funds are applied to the purchase of another home during that period.
l Payments made to crime victims to compensate them for losses resulting from the crime for nine months after the month of receipt.
l Austrian social insurance payments based, in whole or in part, on wage credits granted under Paragraphs 500-506 of the Austrian General Social Insurance Act.
l Volunteer payments under Corporation for National and Community Service (CNCS) Programs. (The former ACTION programs.) Examples of such programs include:
n AmeriCorps (VISTA).
n University Year for ACTION (UYA).
n Special and Demonstration Volunteer Programs.
n Retired Senior Volunteer Program (RSVP).
n Foster Grandparent Program.
n Senior Companion Program.
l Individual Development Account (IDA) - TANF funded.
l Individual Development Account (IDA).
l Payments made by the Department of Defense (DOD) to certain individuals who were captured and interned by North Vietnam. Payments are made by DOD under section 657 of the National Defense Authorization Act. Payments may be received by surviving spouse or children.
l VA benefits paid to or on behalf of Vietnam or Korea service veterans’ natural children suffering disability due to spina bifida or other certain birth defects. Payments are made under Public Law 104-204, Public Law 106-419, or Public Law 109-183.
l Self-Support Assets. For more detail please see Self-Employment Excluded Assets and Self-Support Excluded Assets.
Exclude assets listed in Excluded Assets - General Provisions and MA Method B and GAMC.
In addition exclude the following:
l 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 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.
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.