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7. Examples of Resource Protection

a. EXAMPLE 1: The total countable resources owned by the couple at the time of institutionalization were $78,000. The CSRA is 1/2 of that amount, or $39,000. At the time of application, the total resources held by the couple have been reduced to $40,000. Therefore, the resource total of the a/b is $1,000 ($40,000 - $39,000 = $1,000), and a/b is reserve eligible.

b. EXAMPLE 2: The total countable resources owned by the couple at the time of institutionalization were $25,000. The minimum CSRA is $32,532. At the time of application, the total resources held by the couple are $14,870. Therefore, the resource total of the institutionalized spouse is $0.

c. EXAMPLE 3: The total countable resources owned by the couple at the time of institutionalization were $102,500. The CSRA is 1/2 of that amount, or $51,250. At the time of application, the total resources held by the couple are $58,500. Therefore, the resource total of the institutionalized spouse is $7,250 ($58,500 - $51,250 = $7,250), and the a/b must reduce their resources to the $2,000 limit by allowable means.

d. EXAMPLE 4: The total countable resources owned by the couple at the time of institutionalization were $240,000. The CSRA amount is $120,00. At the time of application, the couple has a total of $117,480. Therefore, the resources of the a/b are $0 and the a/b is resource eligible.

(1) After approval, the community spouse receives an inheritance of $20,000. The resource is not counted for the Medicaid beneficiary.

(2) Medicaid beneficiary receives an inheritance of $20,000. The asset is countable for the beneficiary. If the beneficiary transfers the asset to the community spouse, there is no sanction, and it is no longer countable for the beneficiary.

e. EXAMPLE 5: At the point the first CPI began, total reserve is verified to have been $40,000; therefore, CSRA amount is $32,532. At application, the couple has a reserve total of $60,000. The CSRA does not change but remains $32,532. The total reserve of the applicant is $27,468 ($60,000 - $32,532= $27,468).

E. Step Five: Determine Beneficiary's Total Countable Reserve at End of Protection Period

(Look for definition of protection period in I.A.5., above, and for rules in II.D.3., above.)