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IMA POLICY MANUAL
PART VI: FINANCIAL ELIGIBILITY REQUIREMENTS
CHAPTER 1: Determining Countable Assets
| ALL |
An asset is not saleable and thus is unavailable when it has no current market value as shown by one of the following:
- Statements from two knowledgeable sources (such as realtors, bankers, stock brokers) in a geographic area that say the asset is not saleable due to a specific condition; or
- An actual sale attempt at or below fair market value in the geographic area that results in no reasonable offer to purchase an asset for which a fair market value is determined. This applies only to real property, mortgages, land contracts, life estates, and life leases. The asset becomes saleable when a reasonable offer is received.
Non-saleable assets are excluded from countable assets. |
Pending Sale of Property 1.23
| ALL |
Count as an asset any income that is generated from sale of real estate property, other than the group's primary residence (See also Section 1.24.2: Home Sales in this Part.)
Exclude property the group is making a good faith effort to sell. The means:
- An actual attempt has been made to sell it at a price no higher than fair market value, confirmed by a listing with a real estate company or advertising the property in a major newspaper;
- No reasonable purchase offer has been made; and
- For active cases, the property is continuously up for sale.
There is no time limit on the exclusion if the above conditions are met.
If the above conditions are not met, count the group equity in the property as an asset.
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| MA |
Exclude real estate and personal property that by itself or in combination with other assets would make the individual ineligible provided the person:
- Signs an agreement to sell the property and to repay the amount of assistance received up to the amount but not to exceed the proceeds of the sale (any proceeds remaining after the repayment are a countable resource); and
- Makes a good faith effort to sell the property.
When the property is sold, the net proceeds are counted as an asset to the group. If this makes the group ineligible for Medicaid (based on exceeding the asset limit), the DOH will recover Medicaid expenditures made on the group's behalf out of the proceeds from the sold asset. To enable the DOH to recover these expenditures, the SSR must notify DOH upon learning that an asset is for sale. Only the initial nine months of conditional benefits (or six months in the case of personal property) are subject to recovery.
| Ms. James and her 19-year-old child receive MA under the AR standard, Medically Needy Families and Children. Ms. James inherits a second home which she places on the market for sale. The value of the house would make the group's assets exceed the asset limit for the Medically Needy standard. The house is sold 13 months after she inherited the property. Based on her good faith efforts to sell the property, her MA eligibility continued past the initial nine-month period. Her net proceeds from the sale equal $50,000. The group now exceeds the resource limit and is ineligible for MA. Over the first nine months that the group owned the second home, Medicaid paid $2,000 in medical expenses for the group. The DOH will seek to recover that $2,000 from the group. |
Do not count real estate property that is jointly owned if the sale of the property would cause the other owner undue hardship due to loss of housing and no other housing is readily available. (Note: The home in which a group member resides is always excluded; see Section 1.24: Real Estate in this Chapter.)
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| ALL |
Except for LT, exclude the principal residence owned and occupied by the group. Principal residence is the place where the group usually lives. It includes the home, all adjoining land, and any other buildings on the land. Adjoining land may be separated by roads, rivers, and so on, but it may not be land owned by someone else. Count all other residences.
For LT, see Section 2.12a: Limitation on Home Equity for Long Term Care Assistance in Part VII.
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| MA |
Exclude any income generated from the sale of a home as an asset, if the group purchases or intends to purchase a new home within the next twelve month. The cash from the sale must be kept in a separate account from countable assets. If the person buys another home within the twelve month period, count as an asset any cash that remains from the earlier sale. If the group does not intend to purchase a new home within twelve month, or fails to purchase a new home within twelve months, count the cash that remains from the sale as an asset.
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| TANF |
See MA.
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| GC |
See AR.
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| FS |
Count as an asset any income generated from the sale of a home. |
Income-Producing Real Property 1.24.3
| ALL |
Property which annually produces income consistent with its fair market value, even if it only produces income on a seasonal basis, is not counted as a resource (though the income produced from the asset would be treated as income). The minimum annual rate of return is six percent of either assessed or fair market value, whichever is less.
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| MA |
SR: Some SR Medicaid recipients may also qualify for the "PASS' program under which some assets are not countable. Contact the IMA Policy Unit, if an SR Medicaid recipient reports such assets. |
| ALL |
Exclude property held in probate.
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| ALL |
Exclude a lot (including a partially built home) in the District of Columbia if the person intends it to become his/her home and does not own another home.
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