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TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 17 If a Medicaid recipient started receiving LTC Medicaid on or after January 1, 2006, evaluate home equity at the next redetermination. Verification of the equity value of the home is required. Equity value is determined by using the current market value of the home minus any encumbrance (e.g. mortgage; loan; lien on the home. Individuals with equity value in home property that exceeds the home equity cap as set by federal regulations are NOT eligible for Medicaid payment of long-term care services unless the home is lawfully occupied by: • a spouse, • a dependent child under age 21 years, or • a blind or disabled child of any age. *Note: This is not a change in the general rule that excludes a home of any value for purposes of determining eligibility for Medicaid. It applies only to medical assistance payment for nursing facility services, or other long-term care services referred to in 1917(c)(i)(C)(i). Individuals with substantial home equity may be eligible for Medicaid payment of other covered services if they meet all the other Medicaid eligibility requirements. See DSSM 20320.7.E for current home equity cap. 10 DE Reg. 1700 (05/01/07) 16 DE Reg. 639 (12/01/12) 20320.7.B.1 Reverse Mortgages Reverse mortgages do not reduce equity value until payments are being received from the reverse mortgage. 10 DE Reg. 1700 (05/01/07) 20320.7.B.2 Home Equity Credit Lines/Loans A home equity line of credit or home equity loan does not reduce the equity value until credit line or loan has been used or payments from the credit line or loan have been received. DMMA shall verify that the home equity credit line or loan was not transferred for less than Fair Market Value. 10 DE Reg. 1700 (05/01/07) 20320.7.C Co Owners When there are co owners to the property, divide the total equity interest by the number of shared owners proportional to their interest in the property. Husband and wife are considered as one owner. 10 DE Reg. 1700 (05/01/07) 20320.7.D Definition of Home The home is defined as any residential property in which the applicant and/or spouse possess an ownership interest that also serves as the principal place of residence of the applicant and /or, spouse, or dependent child. An applicant and spouse may have an ownership interest in several residential properties, but only one shall be considered a home for the purposes of this section. See DSSM 20320.3. 10 DE Reg. 1700 (05/01/07) 20320.7.E Substantial Home Equity Cap Beginning in the year 2011, the limit on the substantial home equity will be increased yearly based on the Consumer Price Index (CPI). Effective Date Home Equity Cap January 1, 2006 $ 500,000 January 1, 2011 $ 506,000 January 1, 2012 $ 525,000 10 DE Reg. 1700 (05/01/07) 16 DE Reg. 639 (12/01/12) 20320.7.F Hardship