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MEDICAL SERVICES POLICY MANUAL, SECTION E
E 517 Home Equity Limit Long Term Services and Supports
Some examples of the above exclusion are the land used for gardening or for grazing livestock when the product (vegetable ormeat) is used only for personal consumption by the applicant/client and his household members. Equipment, such as a tractor or fishing boat, used in the production of food solely for home consumption may also be excluded. However, an automobile or truck may not be excluded under these provisions. The currentmarket value (See MS E-514) and the value of the individual’s equity in the property must be verified in order to determine what portion of the equity value, if any, must be counted as a resource. Only one $6,000 exclusion may be given under this policy that allows a $6000 exclusion regardless of rate of return.
Home Equity Limit – Long Term Services and Supports MS Manual 02/16/17 The Deficit Reduction Act of 2005 established a home equity limit for individuals applying for Long Term Care Services beginning January 1, 2006. This limit applies only to eligibility for nursing facility vendor payments, Home and Community Based Waiver services and PACE. An individual ineligible for HCBW or PACE services due to the home equity limit is not eligible for Medicaid in either of these categories and his/her application will be denied. An individual ineligible for nursing facility vendor payments due to the home equity limit may still receive other Medicaid covered services. EXCEPTIONS: The home equity limit does not apply to: 1. Individuals who applied and were determined eligible prior to January 1, 2006 and who have had no break in LTSS eligibility since January 1, 2006. 2. Individuals whose spouse, children under the age of 21, or child who is blind or has a disability is residing in the home. The Center for Medicare/Medicaid Services in the federal Department of Health & Human Services annually reviews and revises the amount of the home equity limit. Changes to the amount go into effect on January 1 of the applicable year. Refer to MS Appendix R for the current year’s home equity amount. Home equity will be determined at application for those applying on or after January 1, 2006. Equity value in the home will be determined in the same manner as for non-home real property.