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18.2 Reserved This page last updated in Release Number: 15-01 Release Date: 06/10/2015 Effective Date: 06/10/2015 18.3 Spousal Impoverishment Requirements All institutionalized persons applying for Medicaid must meet the same nonfinancial requirements. Spousal impoverishment policy introduces no changes in Medicaid nonfinancial tests. On the financial side: 1. Assets. The assets of both the institutionalized person and his or her community spouse are counted in the asset test. 2. Income. The income limit is the same as that for non-spousal impoverishment institutionalized persons. But, after the institutionalized person becomes eligible, he or she is allowed to allocate some of his or her income back to his or her community spouse and family. This page last updated in Release Number: 15-01 Release Date: 06/10/2015 Effective Date: 06/10/2015 18.4 Spousal Impoverishment Assets 18.4.1 Spousal Impoverishment Assets Introduction Count the combined assets of the institutionalized person and his or her community spouse. Add together all countable, available assets (see SECTION 16.1 ASSETS INTRODUCTION) the couple owns. Note Marital agreements, including prenuptial and postnuptial agreements, have no effect on spousal impoverishment determinations. Do not count the following assets: • Homestead property. If the institutionalized person and the community spouse each own home property and meet the criteria in SECTION 16.8.1.3 EXEMPT HOME PROPERTY, exempt the institutionalized person’s home but not the community spouse's home. Example 1 One spouse is in a nursing home, the other lives in the community. They have lived apart for 10 years. The institutionalized person owns a home and intends to return. The community spouse owns a different home. The home that each spouse owns is the principal residence of that spouse. The institutionalized person's home is an exempt asset. The community spouse's home is not exempt. • If they both own homes and the institutionalized person’s home is not exempt, count the institutionalized person’s home but exempt the spouse’s home. Both homes cannot be exempt simultaneously. • One vehicle, regardless of value or purpose. If the AG has more than one vehicle, completely disregard the vehicle with the highest equity value, regardless of purpose. Then, for the remaining vehicles, follow the EBD rules for vehicles (see SECTION 16.7.9 VEHICLES [AUTOMOBILES]). Example 2 Howard is applying for benefits. Howard is in an institution and Marianne is his community spouse. They own a boat with an equity value of $10,000 and an automobile with an equity