Commonwealth of Massachusetts Executive Office of Health and Human Services Office of Medicaid 600 Washington Street Boston, MA 02111 www.mass.gov/masshealth MassHealth Eligibility Letter 139 December 16, 2005 TO: MassHealth Staff FROM: Beth Waldman, Medicaid Director RE: Revisions to the Countable Asset Regulations about Vehicles MassHealth is revising the countable asset regulations about vehicles. The revisions are being made because of a change in federal regulations at 20 CFR 416.1218(b)(1). The revisions remove the separate requirements for an unmarried institutionalized individual. In addition, one vehicle is noncountable if it is for the use of the eligible individual or couple or a member of the eligible individual’s or couple’s household. These regulations are being issued as emergency regulations and were effective April 1, 2005. MANUAL UPKEEP Insert Remove Trans. By 520.007 (3 of 7) 520.007 (3 of 7) E.L. 63 130 CMR: DIVISION OF MEDICAL ASSISTANCE Trans. by E.L. 139 Rev. 04/01/05 MASSHEALTH FINANCIAL ELIGIBILITY (3 of 7) Chapter Page 520 520.007(d) when the terms of the annuity provide for unequal payments, the MassHealth agency may treat the annuity as a disqualifying transfer of assets. Commercial annuity payments that vary solely as a result of a variable rate of interest are not considered unequal payments under 130 CMR 520.007(C)(4)(d). (D) Securities. Securities include, but are not limited to, stocks, bonds, options, futures contracts, debentures, mutual funds including money-market mutual funds, promissory notes, and other financial instruments. Tradable securities are valued at the most recent closingbid price, and nontradable securities are valued at current equity value. A security for which there is no market value or that is inaccessible in accordance with 130 CMR 520.006 is noncountable. (E) CashSurrender Value of LifeInsurance Policies. (1) The cashsurrender value of a life-insurance policy is the amount of money, if any, that the issuing company has agreed to pay the owner of the policy upon its cancellation. An individual may adjust the cashsurrender value of life insurance to meet the asset limit. The MassHealth agency will consider the cashsurrendervalue amount an inaccessible asset during the adjustment period. (2) If the total face value of all countable lifeinsurance policies owned by the applicant, member, or spouse exceeds $1,500, the total cashsurrender value of all policies held by that individual is countable. The MassHealth agency does not count the face value of burial insurance and the face value of lifeinsurance policies not having cashsurrender value (for instance, term insurance) in determining the total face value of life-insurance policies. Burial insurance is insurance whose terms specifically provide that the proceeds can be used only to pay the burial expenses, funeral expenses, or both of the insured. (F) Vehicles as Countable Assets. (1) Requirements. In determining the assets of an individual (and the spouse, if any), the countability of a vehicle is determined as follows. (a) One vehicle per household is noncountable regardless of its value if it is for the use of the eligible individual or couple or a member of the eligible individual’s or couple’s household. (b) The equity value of all other vehicles is a countable asset.