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Effective: September 1, 2009 |
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19.20ar5 - Verification of Assets (Archive) |
Archived: November 1, 2009 |
Health care program rules for verifications, third party or other documentation of an eligibility factor vary by program.
See Verification Requirements for more information regarding this topic.
General Asset Verification Policy.
General Asset Verification Policy
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 value from a licensed dealer.
l An estimate from a licensed appraiser.
Follow up with a 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.
Verify assets in the following two instances only:
l when a client reports or a worker identifies that a Continuing Care Retirement Community (CCRC) entrance fee may be available.
l when a worker’s compensation settlement causes the client to exceed the asset limit.
n Accept an award notice or settlement letter that documents the amount of the worker’s compensation settlement.
n Accept the applicant’s or enrollee’s verbal or written statement about the amount of the settlement funds they have remaining.
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.
Example:
Tim is a single adult without children applying for MCRE. 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 MCRE asset limit. Tim is asset eligible for MinnesotaCare.
Do not require verification of other assets.
l Significant changes in assets should be reported by clients between renewals however, these changes do not affect eligibility until renewal.
l See MA Asset Verification Denial/Closure for information on how these negative actions affect MinnesotaCare eligibility.
Review assets at application and renewal, for those who are not exempt from an asset limit, to determine if the total value of reported assets is at or below the applicable asset limit.
l Do not include excluded or unavailable assets in the asset total.
l Contact the client to determine the net value of assets if both of the following occur:
n Encumbrances are not reported. Do not require verification of encumbrances at any time.
n The client’s asset total is in excess of the asset limit.
Example:
A married couple, Joan and Henry (ages 42 and 44 respectively), and their two minor children apply for MCRE. 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 MCRE. 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:
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 MCRE asset limit and Joan and Henry are asset eligible for this program.
Verify the reduction of assets on medical bills for a retroactive period. See Excess Assets.
Verify all countable assets and their encumbrances at application and renewal, unless you have received verification as part of an application or review for another program within the last 30 days, for those who are not exempt from an asset limit to determine if the total value of reported assets is at or below the applicable asset limit.
l Significant changes in assets should be reported by clients between renewals, but are not verified until renewal.
l Do not verify or include excluded assets in the asset total.
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.
Action:
Request verification of the equity value of the second vehicle.
l Assets that are counted but are determined unavailable, and therefore not counted in the asset total, must still be verified.
l Contact the client to determine the net value of assets and request verification if both of the following occur:
n Encumbrances are not reported or verified.
n The client’s asset total is in excess of the asset limit.
l Assets of an exempt person are verified if required to be deemed to a non-exempt person.
l Verify assets as of the first of the month of application or the month the renewal is due.
l If retro coverage is requested, verify assets as of the first of the month of the retro period, as well as the first of the month of application.
Note: Additional retro months' verification is not needed unless there is reason to believe that the asset values have changed.
Clients denied from MA solely for the failure to verify assets may not be eligible for MinnesotaCare or GAMC. See MA Asset Verification Denial/Closure for information on how these negative actions affect MinnesotaCare and GAMC eligibility.
Follow MA Method A requirements, as well as those outlined in this section.
Verification is required of the following assets, even if not counted, excluded or are unavailable, to ensure they are assessed correctly:
l 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.
Significant changes in assets should be reported by clients between renewals, but are not verified until renewal.
Verify all assets at:
l The time of an asset assessment.
l Application.
l The first annual renewal.
Note: Be sure to verify that all assets allocated to the community spouse have been legally transferred to the community spouse at this time.
After the first annual renewal, follow MA Method B verification policy.
Exception: The fair market value and encumbrances on the client’s home must be verified when applying the LTC/EW Home Equity Limit. When the client owns the home jointly, verification of the client’s share of ownership is also required.
Verify liquid assets if the total reported assets are within $300 of the asset limit at application or the annual renewal, unless verification of the asset was received within the last 30 days as part of an application or review for another program.
Note: Do not verify assets at the six-month renewal.
Example:
Cory applies for health care. He is single, not disabled and not over 65 years old. Cory has other health insurance which makes him ineligible for MCRE. He reports owning a savings account with a $300 balance, a checking account with a $300 balance, and one share of stock in a well known computer company with a value of $110. He has no other assets.
Action:
Cory’s GAMC asset limit is $1000. He has a total of $710 in liquid assets which are within $300 of the asset limit. He must verify these assets, because they are liquid and he is within $300 of the asset limit. He can verify the assets with bank statements and a stock certificate, or by some other acceptable means.
See MA Asset Verification Denial/Closure for information on how these negative actions affect GAMC eligibility.
Refer to the following topics for more information: