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MEDICAL SERVICES POLICY MANUAL, SECTION E
E 530 Treatment of Resource Changes
E-530 Treatment of Resource Changes MS Manual 02/16/17 Treatment of Resource Changes: 1. Increase in Value of Existing Resource The increase in value of an existing resource (such as a value increase in stock) is not considered to be income when it occurs. Value increases in resources are included with resources the month following the increase. 2. Receiptof New Resource The receipt of a new resource such as a cash gift is considered to be income for the month of receipt and, if retained, as a resource in the month following receipt. 3. Conversion of Resource Conversion of a resource from one form to another (cash to property or vice versa, etc.) can affect resource eligibility in the month following the change. For example, the conversion of an excludable automobile to non-excludable resources by sale or trade could cause the countable resource limitation to be exceeded the month following the change. 4. Repair/Replacement of Lost, Damaged or Stolen Resources Cash or in-kind payments received from any source for repair or replacement of lost, damaged or stolen resources are not counted as income, and are not considered countable resources until the month after 9 full months from the date of receipt. Any interest that accrues to these funds is also excluded from income and resource consideration for the 9 month period. The cash payments and interest should be maintained separate from other liquid resources. Cash received for personal injury or other purposes is not excluded from income and resources. If the excluded cash is used to purchase a nonexcludable resource during the 9 month period, the resource will be evaluated according to the applicable resource rules. When circumstances prevent the repair/replacement of the resource during the 9 month exclusion, a reasonable extension not to exceed 9 additional months may be granted, provided: a. It can be documented that a reasonable effort to repair/replace was made (at least 2 providers should be contacted for documentation), and b. The individual still intends to repair/replace the resource.