1. Expanding Foundations: Non-MAGI
Resources
Expanding Foundations: Non-MAGI

2. Types of Resources and Data Entry
Goal: To understand resource eligibility rules and processes
Objectives:
After this module participants will:
Data enter different types of resources.
Identify exempt resources.
List references to aid in data entry.

3. Life insurance policies
Estates
Life insurance policies
Home
Estate
Accounts
An Estate is the net worth (assets-liabilities) of an individual at any time
Upon death the estate (both assets and liabilities) of an individual remains
Assets may be liquidated and used to payoff liabilities
Annuities

4. Inheritance Estate Home Accounts Annuities
If any assets remain they will make up the inheritance to be divided according to the will or existing law.
The estate can be settled and
Annuities

5. Medicaid is not in the business of protecting inheritances!
Assets can be distributed
Medicaid is not in the business of protecting inheritances *few exceptions i.e. homes depending on who lives there.

6. Estate Recovery
Estate Recovery allows Medicaid to recoup expenses from an estate prior to any inheritance disbursements.

7. Estate Recovery
Home
Estate
Accounts
Annuities
To Medicaid

8. Estate Recovery Allows for less harsh rules upfront
Homes, vehicles etc.

9. Liquid Assets Bank Accounts Retirement Accounts Cash
Items held as an investment
Etc.
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10. Liquid Asset-Data Entry
EBD
Resource Name*** Identifiable
Acct# Identifiable
Type
FMV –requires at least $0.01 to generate a checklist

11. Liquid Asset-Data Entry
EBD
Joint Ownership requires +Add button
Amount of balance…. -Disregard current Income
Exemption is not used in rules engine
Percent Owned will assign asset share

12. Encumbrances
Enter loans, Mortgages etc. Deducts from countable value (cars, mortgages)
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13. Vehicle Exempt one if used for transportation Regardless of value
Use FMV
Bluebooks are guideline
CBMS auto exempts higher value. Only will exempt the additional vehicle for spouse if each vehicle is individually owned (one by each person)
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14. Vehicle
FMV: Blue Books are guides – Use Trade-in Value (Need cash today scenario!)
Good condition and 12,000 miles/year are defaults without more info.
Other appraisals can be used, use PPP and err on the side of favorability to the client

15. Vehicle 1. Select Vehicle Button 2. Select Add Resource Page 43
Informational,
See intent to Sell
Note Encumbrances and Disposition tabs same as outlined earlier
Page 43

16. Intent to Sell Exemption for vehicles and property Must be listed
Client must accept reasonable offers
Request updates/verification every 3 months
Reasonable offers are defined as 2/3 FMV
Upon Sale initial resource limits apply

17. Real Property Primary Home Secondary properties Mineral rights
Other income producing property
Page 44

18. Primary Home Exempt up to $552,000 in equity
Must be living in home or “Intend to Return”
Exempt if Spouse or dependent relative live in home (no limit)
FMV
Also 3 month exemption for secondary home being used as replacement (time to move)
Intent to return has no time limit (estate recovery is in play). Intent to Return out of state means they are not a Colorado resident.
One primary home exemption only (applies to non-legally separated couples)
FMV use appraisals,

19. Secondary Property Equity is countable Intent to sell can be applied
Appraisals as guideline
Equity, enter FMV and Encumbrance
Intent to sell
Using eAppraisals is ok, but pull a variety of sources due to their volatility. Applicant can dispute
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20. Mineral Rights Land appraisal if land is owned
Mineral rights only appraisal if not
Often low due to extraction costs
Income producing property exemption
Mineral rights are ownership of the natural resources that can be extracted, may not include ownership of the land itself
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21. Income Producing Property
Exempt up to $6000
Non-business property
Business property producing a 6% return on the excluded value
Income is countable income
Mineral rights, Vehicles, Land, Rental property

22. Real Property Data Entry
Resource Name
Type: as applicable
House-Primary will exempt
Income generating
FMV use appraisal value (even for primary home). Enter Encumbrance to calculate equity.
Enter address below
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23. Real Property Data Entry
Intent to Sell information. Intent to return
Prior to entering…. Information needed applies to estate recovery

24. Burial Assets Burial plots, and irrevocable policies are exempt
Additional $1500 set aside per person as revocable
Saves Medicaid burial costs later
HCPF must be remainder beneficiary
*$1500 is generally revocable policy or trust, but policy allows for ‘other arrangements’ so long as the account is kept separate (interest generated will also be exempt)
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25. Burial Asset
II> Resource Summary>Liquid Asset Summary>Burial Asset
Ownership same as liquid assets

26. Life insurance Per Person (Applicant and Spouse Page 48
If total face value of all policies are over $1500, all are countable.
If total face value of all policies are $1500 or less, all are not countable.
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27. Life Insurance Face value: Death benefit
Cash Value: Investment component
Cash Surrender Value: Amount received to ‘cash out’ the policy

28. Term Life Insurance
Premium payments keep death benefit active (face value)
No cash value
No cash surrender value
Note the face value adds to the $1500 rule, but since there is no cash value this will not be countable

29. Whole Life Insurance Also called Universal or Variable
Premium goes to death benefit and an investment fund
The investment fund is the cash value
The cash surrender value is a separate amount
Note: Policy holders can ‘borrow’ from the cash value of a policy. This acts as a loan with a repayment agreement.
The repayment agreement is at death (from the face value) or upon surrender (from the cash surrender value).
The Cash Surrender Value always adjusts to reflect these loans

30. Counts for Medicaid only
AF vs. Medicaid
Countable for Both
Face Value over $50,000 and
Purchased within 48 months
Counts for Medicaid only
Face Value greater than $1500 but less than $50,000
Or >$50,000 and purchased more than 48 months ago
Exempt for both
Total Face Value $1500 or less

31. Life Insurance Ownership details remains the same
Policy # for tracking purposes
Face and cash surrender value

32. Data Entry Practice
Page 52-63

33. Types of Resources and Data Entry
Goal: To understand resource eligibility rules and processes
Re-Visit Objectives:
Can you?
Data enter different types of resources.
Identify exempt resources.
List references to aid in data entry.
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