Medical care services - Resources
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Medical care services - Resources


Revised December 7, 2011



WAC 182-509-0200MCS resources--How resources affect eligibility for medical care services (MCS). (Emergency rule effective 11/1/11.)
WAC 182-509-0205MCS resources--How resources count toward the resource limits for medical care services (MCS). (Emergency rule effective 11/1/11.)
WAC 182-509-0210MCS resources--How vehicles count toward the resource limit for medical care services (MCS). (Emergency rule effective 11/1/11.)

WAC 182-509-0200

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CLARIFYING INFORMATION

  1. Legal Barriers: A resource is unavailable if there is a legal barrier to its sale. Examples of legal barriers include:
    1. Property that is tied up in a divorce proceeding.
    2. Jointly owned property that the client cannot sell because the other owners do not agree to sell it.
    3. Property for which the client cannot get a clear title.
    4. The client does not have the necessary funds to retain an attorney.
  2. If the legal barrier can be overcome, require the client to take reasonable steps to do so unless the cost of legal action would be more than the client would gain or the legal action is not likely to succeed.
    1. Exempt the property permanently if the client cannot overcome the barrier.
    2. Treat the property as unavailable and exclude it for the period of time the client attempts to make a resource available. Review the status at each recertification/eligibility review.
    3. If the client overcomes the barrier, count the property to determine the client's eligibility unless the client makes a bona fide effort to dispose of the property as described in 7 below.
  3. If a client must petition the court to release part or all of a resource, including funds in blocked accounts or trusts, it is unavailable. Review the status at each recertification/eligibility review.
  4. Community property is all property held in the name of either the husband or wife or both. We consider community property as a resource potentially available to the assistance unit.
  5. We consider property to be separate property when:
    1. The property was acquired by either spouse before marriage;
    2. The property was acquired as a gift or inheritance by either spouse; or
    3. The property was acquired and paid for entirely out of income from separate property.
  6. Commingling of income from separate property and community income in the purchase, maintenance, or improvement of property may destroy the status of separate property. If you are unable to determine what income paid for what, then the separate property designation is destroyed.
  7. If the client has available nonexempt real property, exclude the property while the client makes a good faith effort to sell it. The client must accept any reasonable offer on the property for this exemption. Good faith efforts include:

a.  Listing the property with a real estate company;

b.  Actively showing the property; and

c.  Placing signs on the property and ads in the newspaper.

d.  Asking a price that is at or under fair market value (FMV).

8. Exclude any non-liquid assets if a creditor placed a lien on the property to secure a business loan and does not allow the AU to sell the property. Examples of non-liquid assets include land, crops, buildings, farm equipment and machinery.

9.  If a resource is currently unavailable, but you are reasonably certain that it will become available, create a tickler to review its status.

10.  When a client owns a resource with someone outside of the AU, such as a joint bank account, we count an equal portion of the resource that belongs to each person who owns it.


WORKER RESPONSIBILITIES

  1. Follow these steps for assistance units (AU) with resources:
    1. Determine whether the AU owns resources, and whether they are available.
    2. Separate the excluded from the countable resources. See WAC 182-509-0205 .
    3. Add the values of all countable resources.
    4. Compare the total countable resources to the appropriate limit.
    5. Set ticklers to review unavailable resources that might become available.
  2. Accept the client’s statement as verification unless it is questionable. This means we use:

a.  What the client enters on the application / eligibility review form. 

b.  What the client tells you during the interview.

3.  When an AU reports receipt of a resource that exceeds the applicable resource limit (by itself or in addition to other countable resources):

a.  Allow the AU 10 days to update the CSO information about the resources it owns and their current value.

     b.  Stop benefits when the AU fails to update its declared resources or its resources exceed the applicable resource limit. See: Letters A. - Related WAC -  WAC 388-458-0030.

4.  When a recipient converts a resource to a new type:

a.  Allow the AU 10 days to update the CSO information about the resources it owns and their current value.

b. Determine whether the new resource is excluded or countable.

c. If the total of all countable resources is over the limit, stop the benefits and provide the AU with advance and adequate notice. See: Letters A. - Related WAC WAC 388-458-0030.


WAC 182-509-0205

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CLARIFYING INFORMATION

  1. Some examples of resources that are excluded for MCS are:
    1. Personal effects;
    2. Benefits from the Basic Food Program;
    3. LIHEAP payments;
    4. One burial plot for each AU member; and
    5. The income and resources of an SSI recipient.
  2. Some examples of lump sums for cash assistance are:
    1. Cash prizes;
    2. Awards;
    3. Lottery winnings;
    4. Refunds of cleaning, damage, security, or utility deposits; and
    5. Insurance or damage settlements, some or all of which may be excluded. See LUMP SUM PAYMENTS for more information.
  3. Sentimental Value Exemption

The exemption of a resource due to “great sentimental value” is limited to personal property. Vehicles are counted or exempted as defined in WAC 182-509-0210.

  1. A trust fund is considered unavailable for MCS when:
    1. A household member cannot revoke the trust or change the beneficiary;
    2. The trustee administering the funds is not under the direction of a household member or is appointed by the court with court-imposed limitations on the use of the funds;
    3. The funds are used solely to make investments on behalf of the trust or pay for medical or educational expenses for a specific household member; and
    4. The investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction, or influence of a household member.
    5. The client must petition the court to release part or all of a resource, including funds in blocked accounts or trusts. Review the status at each recertification/eligibility review.
  2. Real Property
    1. Public rights of way, such as roads that run through the surrounding property and separate it from the home, will not affect the exemption of the property.
    2. Definition of a “good faith effort to sell” real property:
      1. Listing the property with a real estate company;
      2. Actively showing the property;
      3. Placing signs on the property and ads in the newspaper; and
      4. Asking a price that is at or under fair market value (FMV).

Real and Personal Property Used for Self-Employment

  1. For MCS, real and personal property used for self-employment are excluded if:
    1. The property is necessary to restore the client's independence or will aid in rehabilitating the client or the client's dependents; and
    2. The client has an approved self-employment plan for when they return to work. 
  2. Examples of real or personal property used in a self-employment business include:
    1. Farm Land;
    2. Farm Machinery;
    3. Livestock;
    4. Business Equipment; and
    5. Business Inventory.
  3. For MCS, an approved self-employment plan must include the following:
    1. A time frame that the client's business will produce enough income to reduce the assistance unit's need for MCS.
    2. A requirement for the client to give the department adequate verification to verify the business' assets and expenses on a monthly basis. See: Income - Special Income Types  (MCS)
    3. A statement of understanding between the client and the department that the real and personal property of the business will be excluded as long as there is an agreed plan.
    4. If the client does not sign an agreed plan, the value of all real and personal property of the business will count toward the assistance unit's resource limit.

WAC 182-509-0210

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CLARIFYING INFORMATION

1.      To be considered a vehicle, the transportation device must have a motor. If it does not have a motor, it is considered personal property.

2.      To determine the fair market value of a vehicle, check the current value as listed in the Kelley Blue Book @ http://www.kbb.com/ or N. A. D. A. guides @  http://www.nadaguides.com/.  The amount owed on the vehicle is subtracted from the value to determine the amount of equity the person has in the vehicle.  The amount of the resource is the equity value. 

3.      Even though motor homes are vehicles, we do not treat them like vehicles for MCS assistance. We treat motor homes the same way we treat real property. See WAC 182-509-0205  for how to treat real property.

4.      To determine if a vehicle should be considered a motor home, use this definition:

A motor home is a vehicle that is designed to provide temporary living quarters for recreational, camping, or travel use. It is built on or permanently attached to a self-propelled motor vehicle chassis or on a chassis cab or van that is an integral part of the completed vehicle.

Modification Date: December 7, 2011