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Medically Needy SSI-related Medicaid for November and December, and eligible for MAPP again in January. Although the amount deposited into his Independence Account in July, August, September, October, and January will be considered exempt assets when determining his eligibility for both MAPP and Medically Needy SSI-related Medicaid, any money deposited into the IRA during November and December would be added to the $1,000 Pre-Independence Account Balance and counted as an asset because Tom was not eligible for MAPP during those two months. Non-Retirement Accounts In order for a non-retirement account to be registered as an Independence Account, it must be opened with the financial institution after the applicant has been approved for MAPP. The amount the MAPP member opens the account with is part of the Independence Account balance and is not counted. Example 4 Mac is approved for MAPP in October. He fills out the Independence Account form to register his existing savings account as an Independence account. The IM worker cannot approve this account as an Independence Account because it was opened and established with funds before Mac enrolled in MAPP. Non-retirement accounts registered as Independence Accounts may only have funds deposited during months when the member is eligible for MAPP. If any funds, with the exception of account interest, are deposited in a non-retirement account during a period of MAPP ineligibility, the entire account loses its independence account status, and the entire account balance is considered a countable asset. However, any interest accrued to a non-retirement account during a period of MAPP ineligibility does not change the account exemption. As long as the member did not deposit funds into the account themselves while not enrolled in MAPP, the account balance remains an exempt asset. Example 5 Tom is approved for MAPP. After he receives his Notice of Decision, he opens a savings account and registers it as an Independence Account. Tom is eligible for MAPP from July to October, eligible for Medically Needy SSI-related Medicaid for November and December, and eligible for MAPP again in January. Although his Independence Account will be considered exempt when his eligibility for both MAPP and Medically Needy SSI-related Medicaid is determined, he may not deposit any money into the account during November and December because he is not eligible for MAPP during that time. If he does deposit money during those months, the Independence Account’s entire balance will be considered a non-exempt asset. Note For non-retirement accounts registered as Independence Accounts on or after August 1, 2020, there should be no Pre-Independence Account Balance at any time because the only deposits that are allowed into these accounts are those made while the account owner is a MAPP member.

For non-retirement accounts that were registered as Independence Accounts prior to August 1, 2020, any existing Pre-Independence Account Balance will continue to count for all Medicaid programs, and the Independence Account Balance will be exempt for all Medicaid programs. 26.4.1.2 Independence Account Exemption Status If a member with an approved Independence Account loses MAPP eligibility, the exempt portion of the account (on the date eligibility ends) will remain exempt for all future application(s) for all EBD Medicaid programs. 26.4.1.3 Pension or Retirement Accounts A member who has a pension or retirement account can designate that account as an Independence Account. The initial balance is a countable asset (see SECTION 16.7.21 RETIREMENT BENEFITS). Any dividends, interest, and deposits to the account while they are MAPP eligible are exempt from the date