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Title 8: Medicaid Page 101 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources Revised July 10, 2026 Burial Funds

Burial Funds (Cont.) A client in a nursing home has $1,400 in a burial fund, but spends $1,000 in June. This $1,000 is used for June eligibility, and client participation is adjusted for June. Burial Funds’ Increase in Value 20 CFR 416.1124(9), 20 CFR 416.1231(7) Burial funds may increase in value due to interest income or to appreciation in the value of the burial arrangement. Do not count interest on or increases in the value of burial funds that are excluded as a resource.

Count interest on and increases in value of the countable portion of burial funds. To do this, determine the percentage of the burial funds that is countable based on the value of the burial funds at the time they were gathered and apply that percentage to the increase in value.

When a non-MAGI-related Medicaid member has excluded funds set aside for burial at the time of cancellation of SSI:

 Exclude increased funds at the time of cancellation if the member becomes eligible for non-MAGI-related Medicaid coverage within 12 months of cancellation.

 However, if the member loses SSI because the member is no longer disabled, allow the increased funds to be excluded only if the member becomes eligible for a non- MAGI-related Medicaid program within three months.

 Allow only the same percentage increase in funds that was allowed before cancellation if the burial fund account is only partially excluded because the member has other burial funds. This is subject to the same 12- month period.

Contact the SSI representative at the district Social Security office to determine the amount of funds excluded at the time of cancellation when an SSI person becomes ineligible and then goes to another non-MAGI-related Medicaid coverage group.