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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 19 • The promissory note, loan or mortgage must prohibit the cancellation of the balance upon the death of the lender.

If an individual applying for LTSS purchases a mortgage within the look back period that does not meet these conditions, the purchase will be treated as a transfer of assets. The value used to determine the penalty period is the outstanding balance due on the date of the individual’s application for TennCare Medicaid. Economic- Impact Payments Resource Type Stimulus checks or recovery rebates, such as those authorized under the Coronavirus Aid Relief and Economic Security (CARES) Act, are excluded as a countable resource. Educational Income Resource Characteristic Educational income received under Title IV of the Higher Education Act of 1965, such as Pell Grants, Federal Educational Loans and Work Study Programs, or Bureau of Indian Affairs (BIA) grants should be excluded as a resource; there is no time limit.

Grants (other than Title IV or BIA grants) scholarships, fellowships, and gifts intended to pay for tuition, fees or educational expenses are excluded for 9 months beginning the month after receipt.

Excess Patient Liability Accumulated due to the Public Health Emergency (PHE) Resource Type During the Public Health Emergency (PHE) created by the COVID- 19 pandemic, some members enrolled in Institutional Medicaid may not have had their Patient Liability (PL) adjusted. For those who accrued excess resources due to their PL amount not being adjusted, that amount will be excluded as a resource for 12 months following the end of the PHE. Farm, Business/Self- Employment or other Equipment Resource Type The equity value of non self-employment income-producing real property, other than the homestead, is subject to the Rate of Return Test. See the Income-Producing resource characteristic. If the property is used for self-employment, it is excluded as Business or Self-Employment. Rental property is a common form of income-producing property. Rental property is countable, subject to the Rate of Return Test, if the individual who owns the property is not ‘in the business of’ renting property. This means that the individual does not buy, sell