Page 103

state that it is needed for burial and has acquired no other assets to be applied to the burial exclusion. Continue to count only $1500 of cash value as a countable resource. Increases in cash value after Medicaid eligibility begins are disregarded if the policy remains designated for burial expenses; continue to count the original $1500 excess cash value at review. c. After the disposition of the application, any action which reduces or depletes the cash surrender value of a policy (except to pay the premium), that is designated for burial expenses, revokes the burial designation. Stop using the cash surrender value as a burial exclusion when: (1) A loan has been taken against the cash surrender value subsequent to designation; or (2) The policy has been used as collateral subsequent to the exclusion. (3) A policy is “designated” and action is taken during the application processing period to reduce the value. Do not consider the policy as having been designated for any period of time for which eligibility is being determined. d. Always count the cash surrender value of policies owned by the a/b and financially responsible spouse/parents which are on the life of someone outside of the budget if the owner’s total life insurance face value exceeds $10,000 for policies which generate a CSV. Examples: (1) Mr. Brown owns whole life with a face value of $15,000 on himself, whole life with a face value of $1500 on his grandson, and a $1000 term life policy which has no CSV on himself. The total face value of all life policies which generate a CSV owned by Mr. Brown is over $10,000; so cash surrender value is countable. Only the cash value of the $15,000 whole life policy on Mr. Brown is deducted from his burial exclusion. Neither the $1500 whole life on his grandson nor the $1000 term life is used to reduce the burial exclusion for Mr. Brown. (2) Mrs. Green owns whole life policies with face value of $5,000 each on herself, her spouse, and her granddaughter. Total face value of policies which generate a CSV owned by Mrs. Green exceeds $10,000, so the total cash surrender value of all policies counts in resources. Current cash surrender value of each policy is $650. No other burial resources are reported. Couple’s checking account has $100 and savings is $1200. Total countable resources including cash value of policies is $3250. This exceeds the resource limit. $650 cash value on Mrs. Green’s policy and $650 cash value on policy on Mr. Green can be excluded by applying the $1,500 burial 103