2334 Savings and Checking Accounts | Medicaid

Accept the A/R’s statement of account balance(s) unless questionable. If the total of all liquid and non-liquid resources exceeds 75% of the resource limit, the account balances must be verified. Refer to Section 2301, Family Medicaid Resources Overview.

At application obtain financial statements that will verify account balance(s) as of the first moment of the first day of each month Medicaid eligibility is requested. For A/Rs alleging to have accounts with financial institutions, obtain copies of statements and/or updated passbooks.

If the A/R’s past financial history is questionable, it is reasonable at initial application to request financial statements for a minimum of three months prior to the first month that Medicaid eligibility is requested in order to establish a history of financial transactions.

For NH A/Rs, verify ownership and balance of patient fund accounts by telephone or Form 958 on every application and redetermination, regardless of whether the A/R alleges having a patient fund account.

If the above records are available, and if they appear accurate and complete, calculate the balance(s) as of the first moment of the first day of the verification month. Take into consideration any deposits, withdrawals or checks that have been written that are reflected on check stubs/passbooks that are not reflected on the account statement.

If the accuracy, reliability or completeness of the account statement and the A/R’s personal records is questionable, a Form 957, MAO Resource Clearance Form, must be completed by the institution. Form 957 must indicate the balance as of the first moment of the first day of the month.

Inquire as to the disposition of previously owned accounts and develop as necessary. Check available IEVS IRS matches on each review for unreported accounts.

When an AU of Family Medicaid Budget Group member is named on a joint bank account with a non-AU or BG individual solely for the convenience or emergency, exclude the joint account as a resource to the Family Medicaid AU or BG member if the other individual, or someone who is in a position to know, verifies that s/he has deposited all the money in the account and all withdrawals are used for the non-AU or non-BG individual’s benefit.

If an A/R’s or deemor' s name appears on any checking or savings account, including an account under several names, assume that the A/R is an owner of the account unless the A/R verifies otherwise through the rebuttal process. Refer to Joint Account Ownership Rebuttal in this section for rebuttal procedures.

If an account is owned jointly by one or more Medicaid A/Rs and one or more non-Medicaid individuals, count all of the funds in the account as a resource to the Medicaid A/Rs in equal shares. Do not allow a share of the funds to the non-Medicaid individuals.

Assume that an A/R with ownership interest in a checking or savings account has unrestricted access to the account unless the A/R verifies restricted access through the rebuttal process. Refer to Unrestricted Access Rebuttal in this section for rebuttal procedures.

If an individual wishes to rebut the applicable ownership assumption, obtain his or her statement regarding the following:

In addition, inform the individual that he or she must submit the following evidence within 30 days:

Exclude from the A/R’s resources any funds that the evidence establishes were owned by the other account holder(s) and can no longer be withdrawn from the account by the A/R.

Develop a transfer of resources penalty for any withdrawals made on or after 8-11-93 by the other account holder if the A/R has not successfully rebutted ownership. Refer to Section 2342, Transfer of Resources.

If an A/R verifies through the financial institution that s/he cannot withdraw funds from a checking or savings account without the signature of the other joint owner(s), consider the A/R to have restricted access to the account, and exclude the account from the A/R’s countable resources.

The Achieving Better Life Experiences Act (ABLE) was passed by the United States Congress in December 2014. The ABLE Act amends Section 529 of the Internal Revenue Code to create tax advantaged savings accounts for individuals with disabilities. This federal legislation allows eligible individuals with disabilities the opportunity save and fund a variety of qualified disability expenses without impacting their ability to receive Supplemental Security Income (SSI), Medicaid, and other federal programs. The Georgia ABLE program is named Georgia STABLE.

The purpose of the ABLE Act is to permit people with disabilities and their families to save money in and withdraw funds from their ABLE accounts which can be used to help maintain health, independence, and quality of life.

Individuals with disabilities and their families can save up to a maximum amount annually in a tax-advantaged account for disability-related expenses. The maximum amount may change yearly.

Maximum amount:

2017 14,000.00
2018 15,000.00

An ABLE account is an account established and owned by an eligible individual and maintained under a qualified ABLE program. The eligible individual is the designated beneficiary of the ABLE account. An individual is permitted to have only one ABLE account. The individual may open the account in their state of residence, or in another state’s ABLE program.

A parent, legal guardian, or the holder of a Power of Attorney can also open, set up, and manage an ABLE account for their loved one.

Whenever a Medicaid applicant or recipient reports they are the owner of an ABLE account, obtain verification of documentation of the following:

All funds in an ABLE account are disregarded including earning on the account (e.g. interest) when determining eligibility of Medicaid applicants and beneficiaries who are subject to a resource test. The balance within a single ABLE account for an individual, including contributions and earnings, is excluded as a resource.

The funds in an ABLE account are intended to cover an individual’s Qualified Disability Expenses (QDEs) related to his or her blindness or disability. QDEs include, but are not limited to education, housing and basic living expenses, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management, and administrative services, legal fees, and funeral and burial expenses.

Distributions from ABLE accounts are excluded if used or intended to be used for QDEs as long as the distributions are identifiable.

Distributions from an ABLE account are countable when:

Estate Recovery applies to funds in an ABLE account that have become part of an estate subject to recovery.