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MEDICAL SERVICES – APPENDIX N, FAMILY MEDICALLY NEEDY RESOURCE AND INCOME LEVELS 02-24-16 Page 6 of 19 Jointly Owned Vehicles When a vehicle is jointly owned by a Medicaid client and another person whose needs are not included in the same assistance unit, only the Medicaid client’s prorata share of the vehicle’s equity value will be considered. The $1500 disregard will be applied to the Medicaid client’s share of the equity value (if not already applied to another vehicle). EXAMPLE: This applies equally to situations in which the co-owner is, or is not, an SSI recipient. In either case, the Medicaid client’s prorata share of the equity value will be considered in determining his/her Medicaid eligibility. Mr. and Mrs. Smith jointly own a car. Both their names are on the title as "John or Jane Smith." Mrs. Smith receives Medicaid (U-18 SD) for a child from a previous marriage. Their total net equity in the car is determined to be $2000 of which Mrs. Smith’s prorata share (1/2) is $1000. Since Mr. Smith is a stepparent, his resources are not considered. Therefore, only Mrs. Smith’s $1000 equity will be considered. The $1500 disregard is applied to her $1000 share of the equity resulting in zero equity to consider as a resource.  NOTE: If a Medicaid client is the sole owner of a vehicle, which was purchased with an SSI child’s funds, then the full equity value is considered as belonging to the Medicaid client. Determining Net Equity To determine the amount of equity to be considered, the following procedure will be followed: 1. Determine the amount of net equity in each vehicle owned by: a. Making a value determination for the vehicle as described above. b. Subtracting from the determination the amounts of any liens or encumbrances. 2. If the vehicle is jointly owned, determine the Medicaid client’s prorata share of the net equity. 3. Subtract up to $1,500 from the client’s net equity of the vehicle with the highest equity value. Any amount remaining of the $1500 disregard may not be applied to other vehicles. 4. Add the client’s full net equity of any other vehicles to the amount remaining after the $1500 disregard. The total will be considered as a resource. Funeral Agreements Each assistance unit member will be allowed a disregard of $1500 of the current equity value in funeral agreements. Any equity value in excess of $1500 is considered a resource.