Medicaid Resource Limit Firm; Debt not a factor (2008)

Resource limit firm; debt not a factor. Petitioner’s application for benefits was denied twice because the Petitioner’s agent was unable to secure information requested by the caseworker. Petitioner’s agent was not able to gain control over the resources until a conservatorship was approved in February, 2008. As of March 1, 2008, Petitioner had $23,453.89 in a CD. From that, $10,000 was spent on a CD for burial expenses. By May 1st, Petitioner had $1,800 plus two life insurance policies with cash value totaling $472.58. Even though Petitioner owed $60,000 to the nursing home, Medicaid was not approved until June 1, when Petitioner’s total countable resources were under $2,000. The caseworker’s decision was affirmed based on a plain reading of Section 2303 of the manual. Arguably this case is inconsistent with Example 2 in POMS SI 01110.305.C. There the POMS state:

Ms. Harriet Dalton had a court-appointed guardian who had sole access to Ms. Dalton’s savings account. On September 8, 1988 the guardian filed for SSI benefits on Ms. Dalton’s behalf. On November 2,while the claim was still pending, the guardian died. Because of the delay in having a new guardian appointed and establishing a new account signatory, there was no one authorized to withdraw funds from the account for at least 60 days (and possibly longer). “Beginning in December nd until the first month in which a new guardian had access to the account, it was not a liquid resource.” Under this example, it appears the application should have been approved for months March 1, 2008 because no one could access the funds

OSAH-Clarke-Miller-10-2008.pdf (October 15, 2008)

Similar result reached in Timm v. Mont. Dep’t of Pub. HHS, 2008 MT 126 (2008).