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Chapter: 1600 Assets Program: MSSI, SFP 8

Individuals filing an initial application or reapplication for ICP, institutionalized MEDS-AD, Institutionalized Hospice, Home and Community Based Services Programs or PACE on or after November 1, 2007, are subject to the home equity interest standard unless they meet an exception situation. Refer to Appendix A-9.

1640.0307.04 Home Equity (MSSI, SFP) Apply the following policy to individuals who file an initial application or reapplication for ICP, institutionalized MEDS-AD, Institutional Hospice, Home and Community Based Services Programs or PACE on or after November 1, 2007. Do not apply the policy to individuals who were determined eligible for the above programs prior to November 1, 2007 and have had no break in eligibility.

Individuals with an equity interest in their home greater than the home equity interest standard in Appendix A-9 are ineligible for nursing facility or other long-term care services, unless one of the following relatives of the institutionalized individual is residing in the home:

1. spouse; 2. child under age 21; or 3. blind or disabled child, regardless of age or marital status.

Home equity is not an asset test. This does not change the policy that excludes a home of any value from countable assets.

Individuals ineligible solely due to their home equity will not qualify for nursing home care or other long term care services but will be eligible for general Medicaid benefits.

If an individual shares ownership interest in the home with other persons, only consider the equity value of the individual’s shared fractional interest.

The equity value of the home is the current market value minus any indebtedness. Current market value is the price for which the home can reasonably be expected to sell on the open market in the particular geographic area involved.

Unless questionable, accept the individual or designated representative’s statement as to equity value of a home that is less than the current year's spousal impoverishment standards for the minimum home equity limit. For equity value more than the current year's spousal impoverishment limit, the individual or designated representative must provide verification of current market value and indebtedness. The home equity limit is posted on Appendix A-9, SSI- Related Medicaid Coverage Groups Financial Eligibility Standards.

Verification of the current market value must be obtained from a knowledgeable source commonly involved in the housing industry such as a real estate broker, mortgage broker, property appraiser, or builder. The statement must include:

1. the current market value, 2. the name of the person providing the estimate, and 3. contact information of the business or agency for whom the person providing the estimate works. The home equity provision may be waived when denial of long term care services would result in demonstrated hardship to the individual.

The home equity provision may be waived when denial of long term care services would result in demonstrated hardship to the individual.