23 Miss. Code. R. 103-1.16 - Converted Resources

A. If an individual sells, exchanges or replaces a resource, what he receives in return is a resource that has been converted from one type of resource to another.

B. Examples of converted resources are:

1. A lot with equity value of $5,000.00 is sold and the money is deposited into a money market account.

2. A life insurance policy is cashed in and the proceeds are used to purchase a pre-need burial contract.

C. Handling Changes in a Converted Resource. When a resource changes form, it may also change:

1. From an excluded resource to a countable one,

2. From a countable resource to an excluded one or

3. To something that is not considered a resource for Medicaid purposes.

a) Example: An excluded vehicle is sold and proceeds are deposited into a checking account. The money received is a countable resource, rather than income.

b) Example: A life insurance policy with a face value of $15,000.00 and a countable cash surrender value of $1,000.00 is cashed in and the proceeds are used to purchase a cemetery plot which is excluded in the resource determination.

Notes

23 Miss. Code. R. 103-1.16

Social Security Act §1902 (r)(2); 42 CFR §435.601(b) (Rev 1994).