Manual Letter #31

This manual letter lists new and revised material for the Health Care Programs Manual (HCPM). Unless otherwise noted, new and revised instructions are effective February 1, 2010.

Chapter 19 - Assets.

Updates made to this chapter are based on a regularly scheduled review. In addition, updates incorporate bulletin #08-21-06, "Certain Payment to I-35W Bridge Collapse Survivors Excluded as Income or Assets for Income Maintenance and Health Care Programs."

Chapter 20 - Income.

Updates are made to this chapter are based on a regularly scheduled review.

Other Updates.

Chapter 07 - Applications.

Chapter 13 - State and County Residence.

Chapter 14 - Living Arrangements.

Chapter 16 - Medical Support.

Chapter 21 - Income Calculation (Community).

Glossary.

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Chapter 19 - Assets

l  Section 19.10 - Excluded Assets.

n  Incorporates bulletin #08-21-06, "Certain Payment to I-35W Bridge Collapse Survivors Excluded as Income or Assets for Income Maintenance and Health Care Programs."

n  Alphabetized and rearranged the list of exclusions.

n  Adds exclusion for certain payments made to World War II Filipino veterans.

n  Changed crime victim restitution payment to also exclude for MinnesotaCare, MA Method A and GHO. This exclusion is not limited to nine months for any program.

n  Clarifies that past due SSI payments deposited into a dedicated account are excluded indefinitely.

n  Provided additional detail on ”identifiable” assets.

n  Added exclusion for Federal Housing Assistance payments for MA Method B.

n  Added exclusion for Alaska Native Claims Settlement Act payments.

n  Added exclusion for MA Method B and GAMC for state and local relocation assistance payments.

n  Added exclusion for Gifts to Children with Life Threatening Conditions.

n  Added MA Method B and GAMC exclusion for state annuities for certain veterans.

n  Clarified Method B and GAMC exclusion for reimbursements for lost, damaged or destroyed assets.

n  Added CTC refund exclusion for Method A for the month of receipt and the following months.

n  Clarified the exclusion for Domestic Services Volunteer Act payments and VISTA payments and reworded as the CNCS exclusion. The CNCS exclusion also applies to MinnesotaCare, Method A and GHO.

n  Moved Tribal payments and Student Financial Aid to their own sections.

n  Removed references to excluded assets that are more fully addressed in other sections:  Retirement Plans, Homesteads, Business Assets, Proceeds from Sale of Homestead.

n  Removed exclusion for youth incentive entitlement projects and youth community conservation and improvement projects. The authority for these projects was repealed.

l  Section 19.10.05 - Self-Employment Excluded Assets.

Clarifies that assets in current use for self-employment are excluded for Method B, GAMC-Full Benefits, Transitional MinnesotaCare, MA-EPD and Medicare Savings Programs.    

l  Section 19.10.10 - Self-Support Excluded Assets.

n  Emphasizes that some non-liquid assets that may be considered self-support assets may also be considered household goods or personal effects.

n  Clarifies which Minnesota Health Care Programs follow which self-employment policies.

n  Adds an example demonstrating that non-liquid assets excluded for self-support may also be excluded as household goods or personal effects.

l  Section 19.15.05 - Jointly Owned Assets.

n  Clarifies that jointly owned real property is discussed in another section.  

n  Adds Uniform Transfers to Minors Act (UTMA) policy for Method B.

n  Modifies examples using personal property rather than real property.

l  Section 19.25.35 - Trusts.

n  Clarifies various definitions for ”beneficiary.”

n  Explains the difference between income to the trust and income to the client for trusts.

n  Clarifies trust verification requirements.

l  Section 19.25.35.05 - Identifying Types of Trusts.

n  Explains that identifying the type of a trust depends on when the trust was established, who established the trust, and whose income or resources were used to fund the trust.

n  Adds general descriptions on trust characteristics.

l  Section 19.25.35.10 - Client-Funded Trusts.

n  Explains what criteria a trust must meet to be considered a client-funded trust.

n  Explains how to evaluate this type of trust.

n  Clarifies verification requirements for this type of trust.

l  Section 19.25.35.15 - Medicaid Qualifying Trusts (MQTs).

n  Explains what criteria a trust must meet to be considered a Medicaid Qualifying Trust (MQT).

n  Explains how to evaluate this type of trust.

n  Clarifies verification requirements for this type of trust.

l  Section 19.25.35.20 - Special Needs Trusts.

n  Explains what criteria a trust must meet to be considered a Special Needs Trust.

n  Explains how to evaluate this type of trust.

n  Clarifies verification requirements for this type of trust.

l  Section 19.25.35.25 - Pooled Trusts.

n  Explains what criteria a trust must meet to be considered a Pooled Trust.

n  Explains how to evaluate this type of trust.

n  Clarifies verification requirements for this type of trust.

l  Section 19.25.35.30 - Third Party Established and Funded Trusts.

n  Explains what criteria a trust must meet to be considered a trust that is established and funded by a third party.

n  Explains how to evaluate this type of trust.

n  Clarifies verification requirements for this type of trust.

l  Section 19.25.35.35 - Supplemental Needs Trusts.  

n  Explains what criteria a trust must meet to be considered a Supplemental Needs Trust.

n  Explains how to evaluate this type of trust.

n  Clarifies verification requirements for this type of trust.

l  Section 19.25.50 - Student Financial Aid (New).

n  Clarifies when student financial aid is counted as an asset.

n  Describes many types of student financial aid available.

n  Provides additional detail to explain to exclude Higher Education Act (HEA) and Bureau of Indian Affairs (BIA) financial aid indefinitely.

n  Adds information to explain how to count the Qualified Tuition Programs (QTP) funds.

l  Section 19.25.55 - Tribal Payments and Interests (New).

n  Clarifies when to count tribal payments and interests as an asset.

n  Describes common types of tribal payments.

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Chapter 20 - Income

l  Section 20.10 - Verification of Income.

n  Clarifies verification requirements for wage income for MinnesotaCare.

n  Adds instructions for the Employer Statement (DHS-4279) for MinnesotaCare.

n  Adds examples clarifying how to evaluate Unemployment Insurance (UI) received less frequently than monthly.

l  Section 20.25.05 - Excluded Income.

Aligns language with the excluded assets section of the HCPM.

l  Section 20.25.20 - Self-Employment Income.

n  Adds information on Limited Liability Companies (LLC).

n  Clarifies when to confirm a client is self-employed.

n  Adds example clarifying the difference between independent contractors and employees.

l  Section 20.25.20.10 - MA/GAMC Self-Employment Income.

n  Provides additional detail on requirements for calculating and verifying self-employment income for MA and GAMC.

n  Clarifies which Minnesota Health Care Programs follow MA/GAMC self-employment income policy.

l  Section 20.25.20.15 - Use of Home.

n  Aligns language with IRS policy.

n  Adds information on deduction amounts and limits.

n  Clarifies how clients qualify to use this deduction.

l  Section 20.25.20.20 - Travel, Transportation and Entertainment Expenses.

n  Adds travel and entertainment to the title to be clear on expense information included on this page .

n  Aligns language with IRS policy.

n  Adds information on entertainment expenses.

n  Clarifies how clients qualify to use this deduction.

l  Section 20.25.20.25 - Rental Income.

n  Aligns language with Social Security Administration policy.

n  Clarifies which other Minnesota Health Care Programs follow MA Method B rental income policy.

l  Section 20.25.20.30 - Roomer Boarder Income.

Clarifies which other Minnesota Health Care Programs follow MA Method B roomer/boarder income policy.

l  Section 20.25.20.35 - In-Home Daycare.

n  Clarifies which other Minnesota Health Care Programs follow MA Method B in-home daycare income policy.

n  Adds IRS information on standard meal and snack rates.

l  Section 20.25.20.40 - Farm Income.

Clarifies which other Minnesota Health Care Programs follow MA Method B farm income policy.

l  Section 20.25.55 - Student Financial Aid.

Clarifies information on Veterans Administration educational benefits.

l  Section 20.25.90 - Filipino Veterans Payments (New).

n  Describes this new type of income created by the American Recovery and Reinvestment Act of 2009.

n  Explains how to evaluate this income.

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Other Updates

Chapter 07 - Applications

l  Section 07.05.15 - Application not Required.

Clarifies the need for a new application when a client who has transitioned from Transitional MinnesotaCare to MinnesotaCare wants to apply for GAMC.

Chapter 13 - State and County Residence

l  Section 13.25.10 - County Transfers.

n  Clarifies that a case is not transferred until after the client has moved.

n  Clarifies that a client’s new address is required before transferring a case.

Chapter 14 - Living Arrangements

l  Section 14.15 - Correctional Facilities.

Deletes reference to bulletin #07-21-11, "DHS Announces New Medical Assistance (MA) Policy for Processing Requests to Reopen MA for Incarcerated Individuals," which has been incorporated into the HCPM.

Chapter 16 - Medical Support

l  Section 16.05 - When to Refer for Medical Support.

Clarifies that medical support referrals should not be made for children in IV-E foster care placements or who receive adoption assistance.

Chapter 21 - Income Calculation (Community)

l  Section 21.10 - MinnesotaCare Gross Income Determination.

n  Moves detailed policy and examples to section 20.10.

n  Clarifies to compare gross income to the income standard to determine eligibility.

n  Adds information from section 21.20.

l  Section 21.10.05 - MinnesotaCare Income Calculation.

n  Renamed section (used to be MinnesotaCare Income Worksheet).

n  Adds instructions for use of the Employer Statement (DHS-4279).

l  Section 21.20 - MA/GAMC Gross Income Determination.

n  Removes information about manual monthly spenddowns to incorporate changes from bulletin #09-21-12, "DHS Announces Streamlined Procedures for Medical Assistance (MA) Monthly Medical Spenddowns and Information on Reporting Medical Expenses."

n  Provides more detailed information on determining varying and unvarying income.

l  Section 21.15 - MinnesotaCare Excess Income.

Section renumbered from 21.20.05.

l  Section 21.20 - MinnesotaCare Income Calculation (Archived).

Information added to section 21.10.

Glossary

Several terms have been added or updated.

l  Disbursement (New).

l  Grantor (Revised).

l  Inter Vivos (New).

l  Irrevocable Trust (Revised).

l  Probate (New).

l  Revocable Trust (Revised).

l  Trust Corpus (Revised).

l  Trust Instrument (Revised).

l  Trustee (Revised).

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