DATE: September 17, 2003
Manual: Aged, Blind, and Disabled Medicaid
Change No: 06-04
To: County Directors of Social Services
Effective: October 1, 2003
Recently the Centers for Medicare and Medicaid Services (CMS) issued an interpretation regarding transfers of resources, which are not counted against the resource limit due to the “first moment of the month rule.” The value of countable resources is determined as of the first moment of the month. The value as of the first moment of the month is compared to the resource limit. If the value of countable resources on the first moment of the month does not exceed the resource limit, the applicant/recipient (a/r) meets the resource requirement for the entire month. Resources received after the first moment of the month are not counted against the resource limit until the first moment of the next month. However, according to the CMS interpretation, if these resources are given away to a non-allowable person prior to the first moment of the next month, the transfer is sanctionable.
In developing this interpretation, CMS worked with the Social Security Administration regarding the requirements of SSI resource policy. The principle is that even though a countable resource is not counted against the resource limit until the first moment of the month following the month of receipt, it is still a countable resource. If it is given away, a transfer of resources has occurred and must be evaluated for possible sanction. Examples of this include, but are not limited to transferring the proceeds of the sale of a home, a loan or reverse mortgage, or an inheritance.
Policy is revised to be consistent with the transfer of resources policy.
This change in policy is effective October 1, 2003. Apply this policy to all transfers of resources occurring on or after October 1, 2003
Remove MA-2230, pages 1 & 2, 59 – 62, and 67 – 70.
Insert attached MA-2230, pages 1 & 2, 59 – 62, and 67 – 70, effective 10/01/03.
Remove MA-2240, pages 11 – 14.
Insert attached MA-2240, pages 11 – 14, effective 10/01/03.
If you have any questions regarding this material, please contact your Medicaid Program Representative.
(This policy was researched and written by Andy Wilson, Project Coordinator, Medicaid Eligibility Unit.)
For questions or clarification on any of the policy contained in these manuals, please contact your local county office.