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North Carolina Department of Health and Human Services North Carolina Medicaid Division of Health Benefits AGED, BLIND AND DISABLED MEDICAID MANUAL MA-2242

HOME EQUITY VALUE & ELIGIBILITY FOR INSTITUTIONAL SERVICES

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REVISED 12/8/2025 – CHANGE NO. 11-25

I. INTRODUCTION

For applications for institutional services taken on or after January 1, 2026, the individual’s equity interest in their home cannot exceed $752,000. This also applies to future redeterminations of these applicants. See MA-2240, Transfer of Assets, III. for a definition of institutional services. This does not apply to applications for in-home health services and supplies.

The home equity provision does not apply to individuals who:

A. Applied and were determined eligible before November 1, 2007, and have no break in institutional services eligibility after November 1, 2007,

or

B. To a re-open termination when the date of application is prior to November 1, 2007. See MA-2300, Processing the Application.

This section explains the policy and procedures for determining home equity disqualification.

II. LIMITATION ONLY ON PAYMENT FOR INSTITUTIONAL SERVICES

This is not a resource test that excludes a home of any value for purposes of determining eligibility for Medicaid. This policy applies only to eligibility for institutional services as described in I. above. Do not apply this policy if the spouse of the individual, the individual’s child under 21, or the individual’s blind or disabled child of any age resides in the home.

If it is determined the applicant/beneficiary (a/b) is ineligible for institutional services due to home equity value, send a DHB 5115, Notification of Right to Request a Demonstrated Hardship Waiver (Home Equity Value). If the a/b does not request a demonstrated hardship waiver due to excess home equity or after evaluating for a demonstrated hardship waiver due to excess home equity it is determined the a/b remains ineligible for institutional services, update the evidence in NC FAST and evaluate for all other Medicaid programs. Send the appropriate notice.