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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 24 Rate of Return Test

For all remaining ABD financial determinations, exclude up to $6,000 of an individual’s equity in an income-producing resource if it produces a net annual income to the individual of at least 6 percent of the property’s equity value. If the individual’s equity value is greater than $6,000, the amount that exceeds $6,000 is countable towards the resource limit.

If an income-producing resource does not produce a net annual income of at least 6 percent of the resource’s equity value, the entire equity value of the resource is countable.

If the individual owns more than one piece of income-producing resource and each produces income, each is reviewed to determine whether the 6 percent test is met. Then the amounts of the individual’s equity in all of those properties producing 6 percent are totaled to determine if the total equity of all properties is $6,000 or less. If the total equity value in the properties that meet the 6 percent rule is over the $6,000 equity limit, the amount exceeding $6,000 is counted as a resource.

Insurance Resource Type There are two types of insurance considered under this resource type:

1. Sick and Disability Insurance

Excluded. Sick and disability insurance primarily provides income to the insured if he becomes disabled.

2. Burial Insurance

Excluded. Burial insurance is a contract whose terms specifically provide that the proceeds can only be used to pay the burial expenses of the insured.