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Approve the application effective with the month that countable resources are equal to or below the allowable limit and all other eligibility criteria are met. 2. Countable Resources Exceed Limits a. Medically Needy - M If resources are reduced to allowable limits within the application processing time, authorize Medicaid as of the day that both resource and deductible requirements are met, whichever occurs last and all other requirements are met. b. Categorically Needy - N, Q, B, E, and MWD. If resources are reduced to allowable limits within the application processing time, authorize Medicaid the month that resources are below the limit as of the first moment and all other requirements are met. J. Eligibility Redeterminations/Change in Situation 1. Countable Resources Are Within Limits The a/b is eligible if countable resources are equal to or below the appropriate limit as of the first moment of the verification month and all other eligibility requirements are met. 2. Countable Resources Exceed Limits If the beneficiary has excess resources at redetermination or change in situation, he must reduce resources to the allowable limit prior to the effective date of termination. a. Send a DHB-5097, Request for Information, (or DHB-5097S) notifying the beneficiary of excess resources including the resource limit and options for rebuttal of resources (whose value can be rebutted), burial exclusion, or other reduction of resources, that are applicable to the types of resources he owns. Allow 12 calendar days for him to provide proof of rebuttal or reduction of resources. b. If the beneficiary does not provide proof of rebuttal or reduction of resources within 12 calendar days, send a timely notice proposing termination for excess resources. Terminate the case unless the values of the resources are rebutted or resources are reduced prior to the effective date of termination. III. WHOSE RESOURCES TO COUNT In addition to resources owned by the a/b, the resources owned by a spouse or parent 9