005.02(B)(ii) CLIENT AS LENDER.

When a client has loaned money to another party, and the loan is countable as a resource, then the principal portion of the payment is not considered income. If the loan made to another party would not be considered a countable resource, then the full amount of the payment is countable as unearned income. A loan made to a third party where the purpose of the loan is to make the client eligible for Medicaid is not considered a bona fide loan, and is countable as a resource. It is the client’s responsibility to show that a loan was not made for the purpose of becoming eligible for Medicaid.