2304 Treatment of Resources For ABD Medicaid

Georgia State Seal

Georgia Division of Family and Children Services
Medicaid Policy Manual

Policy Title:

Treatment of Resources For ABD Medicaid

Effective Date:

April 2020

Chapter:

2300

Policy Number:

2304

Previous Policy Number(s):

MT 24

Updated or Reviewed in MT:

MT-59

Requirements

The treatment of resources is dependent upon several variables.

Basic Considerations

Non-FBR COAs vs FBR COAs

The following resources are treated differently for non-FBR and FBR A/Rs:

  • burial contracts and burial space items

  • cemetery lots (refer to 2311 Burial Contracts (Pre-Paid or Pre-Need) and Burial Space Items)

  • funds set aside for burial

  • life insurance policies

  • accrued dividends earned on life insurance policies

  • life estate interests

  • income producing property

  • household goods and personal effects

  • promissory notes/loans/mortgages

  • Homeplace property

The above resources may be excluded or treated differently under Non-FBR policy (refer to the Resource Chart in Section 2399): The exclusion only applies IF the resources are owned by the A/R or transferred by the A/R to a spouse or into a trust. IF a resource excluded under Non-FBR policy is transferred to someone or something other than a spouse or a trust, a transfer of assets penalty should be developed. Refer to 2342 Transfer of Assets.

All other resources are treated the same for all classes of assistance.

Refer to Absence from Homeplace in 2316 Homeplace: ABD Medicaid.

Special Exclusions

Certain non-liquid resources that would normally be counted may be totally or partially excluded if specific conditions are met.

Income Producing Property

Personal or real property which currently (or is expected to resume) produces earned income, unearned income, goods, or services may be partially or totally excluded. Refer to 2327 Property Essential to Self-Support.

Undue Hardship Provision

Refer to 2345 Undue Hardship Provision for ABD Medicaid for policy on hardship to A/R or Co-Owner.

Procedures

Bona Fide Effort to Sell

Exclude personal or real property for any month in which the A/R is making a bona fide effort to sell the property.

Evidence of a bona fide effort to sell includes any of the following:

  • listing the property with a realtor

  • a for sale sign on the property

  • advertisement in a newspaper

  • has not refused a reasonable offer (2/3 of CMV).

If the real property for which a bona fide effort to sell is being made is non-homeplace, require the A/R to sign a statement that s/he has tried to sell, is trying to sell, or will try to sell the property within the next 30 days. Require the A/R to market the resource at current market value (CMV).

Verify/document that the A/R has not refused a reasonable offer on the property (2/3 of the CMV).

Verify/Document the A/R’s past and continuous efforts to sell the property at the following intervals:

  • prior to approval of the application

  • 9 months after approval

  • every three months thereafter.

The A/R has 30 days to put the property on the market after signing a statement of intent to do so.

Restricted Allotted Indian Lands

Consider restricted allocated land owned by an individual who is of Indian descent from a federally recognized Indian tribe to be an excluded resource if the individual cannot sell, transfer or otherwise dispose of it without permission from other individuals, his or her tribe, or an agency of the Federal Government.

If an individual alleges owning land that meets the criteria above, complete the following procedures:

  • obtain a copy of any document or documents that might identify it as such

  • verify the allegation with the appropriate Indian agency.

  • Document appropriately.