Section R414-305-3 - Aged, Blind and Disabled Non-Institutional and Institutional Medicaid Resource Provisions(1) To determine resource eligibility of an individual on the basis of being aged, blind or disabled, the Department adopts and incorporates by reference 42 CFR 435.840, 435.845, October 1, 2012 ed., and 20 CFR 416.1201, 416.1202, 416.1205 through 416.1224, 416.1229 through 416.1239, and 416.1247 through 416.1250, April 1, 2012 ed. The Department also adopts and incorporates by reference Section 1917(b), (d), (e), (f) and (g) of the Compilation of the Social Security Laws in effect January 1, 2013. The eligibility agency may not count as an available resource any assets that are prohibited under other federal laws from being counted as a resource to determine eligibility for federally-funded medical assistance programs. In addition, the eligibility agency applies the following rules. (2) A resource is available when the individual owns it or has the legal right to sell or dispose of the resource for the individual's own benefit. (3) Except for the Medicaid Work Incentive Program, the resource limit for aged, blind or disabled Medicaid is $2,000 for a one-person household and $3,000 for a two-person household. (4) For an individual who meets the criteria for the Medicaid Work Incentive Program, the resource limit is >5,000. This limit applies whether the household size is one or more than one. (5) The eligibility agency shall base non-institutional and institutional Medicaid eligibility on all available resources owned by the individual, or considered available to the individual from a spouse or parent. The eligibility agency may not grant eligibility based upon the individual's intent to or action of disposing of non-liquid resources as described in 20 CFR 416.1240, April 1, 2012 ed., unless Social Security is excluding the resources for an SSI recipient while the recipient takes steps to dispose of the excess resources. (6) The eligibility agency may not count any resource or the interest from a resource held within the rules of the Uniform Transfers to Minors Act. Any money from the resource that is given to the child as unearned income is a countable resource that begins the month after the child receives it. (7) The eligibility agency shall count the resources of a ward that are controlled by a legal guardian as the ward's resources. (8) The eligibility agency may not count lump sum payments that an individual receives on a sales contract for the sale of an exempt home if the entire proceeds are used to purchase a new exempt home within three calendar months of when the property is sold. The eligibility agency shall grant the individual one three-month extension if more than three months is needed to complete the actual purchase. Proceeds are defined as all payments made on the principal of the contract. Proceeds do not include interest earned on the principal. (9) If a resource is available, but a legal impediment exists, the eligibility agency may not count the resource until it becomes available. The individual must take appropriate steps to make the resource available unless one of the following conditions as determined by a person with established expertise relevant to the resource exists: (a) Reasonable action does not allow the resource to become available; and (b) The cost of making the resource available exceeds its value. (10) Water rights attached to the home and the lot on which the home sits are exempt as long as the home is the individual's principal place of residence. (11) For an institutionalized individual, the eligibility agency may not consider a home or life estate to be an exempt resource. (12) To determine eligibility for nursing facility or other long-term care services, the eligibility agency shall exclude the value of the individual's principal home or life estate from countable resources if one of the following conditions is met: (a) the individual intends to return to the home; (b) the individual's spouse resides in the home; (c) the individual's child who is under the age of 21, or who is blind or disabled resides in the home; or (d) a reliant relative of the individual resides in the home. (13) Even if the conditions in Subsection R414-305-3(12) are met, an individual is ineligible to receive nursing facility services or other long-term care services if the full equity value of the individual's home or life estate exceeds $500,000, or increased value according to the provisions of 42 U.S.C. 1396 p(f)(1)(C) unless the individual's spouse, or the individual's child who is under the age of 21 or is blind or permanently disabled lawfully resides in the home. The individual may only qualify for Medicaid to cover ancillary services. (14) For Aged, Blind and Disabled Medicaid, the eligibility agency may not count up to $6,000 of equity value of non-business property used to produce goods or services essential to home use daily activities. (15) The eligibility agency may retroactively designate for burial a previously unreported resource that meets the criteria for burial funds found in 20 CFR 416.1231. The effective date of the exclusion cannot be earlier than the first day of the month after the month in which the funds were designated for burial or intended for burial, were separated from non-burial funds, and the client was eligible for Medicaid. The eligibility agency shall treat the resources as funds set aside for burial and the amount exempted cannot exceed the limit established for the SSI program. (16) One vehicle is exempt if it is used for regular transportation needs of the individual or a household member. (17) The eligibility agency may not count resources of an SSI recipient who has a plan for achieving self-support approved by the Social Security Administration when the resources are set aside under the plan to purchase work-related equipment or meet self-support goals. (18) The eligibility agency may not count an irrevocable burial trust as a resource. Nevertheless, if the owner is institutionalized or on home and community-based waiver Medicaid, the value of the trust, which exceeds $7,000, is considered a transferred resource. (19) The eligibility agency may not count business resources that are required for employment or self-employment. (20) For the Medicaid Work Incentive Program, the eligibility agency may not count the following additional resources of the eligible individual: (a) Retirement funds held in an employer or union pension plan, retirement plan or account, including 401(k) plans, or an Individual Retirement Account, even if the funds are available to the individual. (b) A second vehicle when it is used by a spouse or child of the eligible individual living in the household to get to work. (21) After qualifying for the Medicaid Work Incentive Program, the eligibility agency may not count the resources described in Subsection R414-305-3(20) to allow the individual to qualify for other Medicaid programs for the aged, blind or disabled, and not solely the Medicaid Work Incentive, even if the individual ceases to have earned income or no longer meets the criteria for the Work Incentive Program. (22) Assets of an alien's sponsor, and the sponsor's spouse, if any, when the sponsor has signed an Affidavit of Support pursuant to Section 213A of the Immigration and Nationality Act after December 18, 1997, are considered available to the alien. The eligibility agency shall stop counting assets from a sponsor when the alien becomes a naturalized United States (U.S.) citizen, or has worked 40 qualifying quarters as defined under Title II of the Social Security Act or can be credited with 40 qualifying work quarters. After December 31, 1996, a creditable qualifying work quarter is one during which the alien did not receive any federal means-tested public benefit. (23) The eligibility agency shall not consider a sponsor's assets as being available to applicants who are eligible for Medicaid for emergency services only. (24) The eligibility agency may not count as a resource any federal tax refund and refundable credit that an individual receives for 12 months after the month of receipt. (25) The eligibility agency may not count as a resource, for one year after the date of receipt, any payments that an individual receives under the Individual Indian Money Account Litigation Settlement under the Claims Resettlement Act of 2010 , Pub. L. No. 111 291, 124 Stat. 3064. (26) The eligibility agency may not count certain property and rights of federally-recognized American Indians including certain tribal lands held in trust which are located on or near a reservation, or allotted lands located on a previous reservation; ownership interests in rents, leases, royalties or usage rights related to natural resources (including extraction of natural resources); and ownership interests and usage rights in personal property which has unique religious, spiritual, traditional or cultural significance, and rights that support subsistence or traditional lifestyles, as defined in Section 5006(b)(1) of the American Recovery and Reinvestment Act of 2009 , Pub. L. No. 111 5, 123 Stat. 115. (27) The eligibility agency shall not count as a resource a qualified Achieving a Better Life Experience (ABLE) account. (28) The eligibility agency shall count only the portion of an asset such as a retirement plan that is legally available to an individual when that asset has been divided between two divorced spouses pursuant to a qualified domestic relations order. (29) Under the authority of Subsection 1902(r)(2) of the Social Security Act, to determine an individual's eligibility for Medicaid for long-term care services, the Department disregards otherwise countable assets or resources in an amount equal to the insurance benefit payments made to or on behalf of an individual who is a beneficiary under a qualified long-term care insurance partnership policy that meets the provisions found in 42 U.S.C. 1396 p(b)(1)(C)(iii). The amount of the disregard applies to otherwise countable assets the client owns or that are deemed available to the client for the purpose of determining eligibility, and is equal to the amount of benefits the client has received from the partnership policy up through the month immediately before the month of application for long-term care assistance under Utah Medicaid. (a) This resource disregard applies to aged, blind or disabled individuals who qualify for Medicaid under one of the following eligibility coverage groups found under: (i) Subsection 1902(a)(10)(A)(ii)(V) of the Social Security Act; or (ii) Subsection 1902(a)(10)(A)(ii)(VI) of the Social Security Act. (b) The Department treats payments received after eligibility for long-term care services as a third-party liability that does not result in the disregard of additional resources. (c) Assets disregarded under Subsection R414-305-3(28) are not subject to estate recovery authorized under Section 26-19-13.7, with the exception defined below in Subsection R414-305-3(28)(e). (d) This disregard is not specific to any one asset. Any countable assets the individual owns or that are deemed available to the client are subject to the provisions defined in Section R414-305-9 regarding transfers of assets. The Department shall apply a penalty period or an overpayment proceeding for any transfer of assets for less than fair market value. In the event the Department learns of an asset transfer at the time of an estate recovery action for which a penalty period is not assessed or an overpayment is not collected, the Department shall reduce the amount of assets in the estate that could otherwise be excluded from the estate recovery requirements by the value of the assets transferred for less than fair market value. The Department may also take legal steps to recover assets transferred for less than fair market value. (e) Home equity in excess of the standard described in Subsection R414-305-3(13) is not a countable resource, so this disregard does not affect the application of Subsection R414-305-3(13). (f) The Department recognizes long-term care insurance partnership policies purchased in other states under the reciprocity requirements of the statute. The beneficiary of the policy must have been a resident in a partnership state when coverage first became effective under the policy. (30) Life estates. (a) For non-institutional Medicaid, the eligibility agency shall count life estates as resources only when a market exists for the sale of the life estate as established by knowledgeable sources. (b) For Institutional Medicaid, the eligibility agency shall count life estates even if no market exists for the sale of the life estate, unless the life estate can be excluded as defined in Subsection R414-305-3(12). (c) The individual may dispute the value of the life estate by verifying the property value to be less than the established value or by submitting proof based on the age and life expectancy of the life estate owner that the value of the life estate is lower. The value of a life estate shall be based upon the age of the individual and the current market value of the property. (d) The following table lists the life estate figure corresponding to the individual's age. The eligibility agency uses this figure to establish the value of a life estate: TABLE Age Life Estate Figure 0 .97188 1 .98988 2 .99017 3 .99008 4 .98981 5 .98938 6 .98884 7 .98822 8 .98748 9 .98663 10 .98565 11 .98453 12 .98329 13 .98198 14 .98066 15 .97937 16 .97815 17 .97700 18 .97590 19 .97480 20 .97365 21 .97245 22 .97120 23 .96986 24 .96841 25 .96678 26 .96495 27 .96290 28 .96062 29 .95813 30 .95543 31 .95254 32 .94942 33 .94608 34 .94250 35 .93868 36 .93460 37 .93026 38 .92567 39 .92083 40 .91571 41 .91030 42 .90457 43 .89855 44 .89221 45 .88558 46 .87863 47 .87137 48 .86374 49 .85578 50 .84743 51 .83674 52 .82969 53 .82028 54 .81054 55 .80046 56 .79006 57 .77931 58 .76822 59 .75675 60 .74491 61 .73267 62 .72002 63 .70696 64 .69352 65 .67970 66 .66551 67 .65098 68 .63610 69 .62086 70 .60522 71 .58914 72 .57261 73 .55571 74 .53862 75 .52149 76 .50441 77 .48742 78 .47049 79 .45357 80 .43659 81 .41967 82 .40295 83 .38642 84 .36998 85 .35359 86 .33764 87 .32262 88 .30859 89 .29526 90 .28221 91 .26955 92 .25771 93 .24692 94 .23728 95 .22887 96 .22181 97 .21550 98 .21000 99 .20486 100 .19975 101 .19532 102 .19054 103 .18437 104 .17856 105 .16962 106 .15488 107 .13409 108 .10068 109 .04545 Utah Admin. Code R414-305-3
Amended by Utah State Bulletin Number 2014-20, effective 10/1/2014Amended by Utah State Bulletin Number 2016-14, effective 7/1/2016