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Medicaid Personal Property Rules Changed

Thu, 03/10/2005 - 12:00am — Karen Stevenson
Description: 

The Social Security Administration has revised the rules for counting the value of personal property when determining eligibility for Supplemental Security Income (SSI). The new rules will make it easier to qualify by clarifying that there will be no limit on the dollar value of personal property or a vehicle used by the recipient or a member of his or her household. The rule also states that gifts of clothing will no longer count as income. The changes to SSI eligibility impact Medicaid because anyone who qualifies for SSI is automatically eligible for Medicaid as well.

The explanation of the rule change was printed in the Federal Register February 7, 2005 (Volume 70, Number 24):

"We are revising our regulations that explain how we determine an individual's income and resources under the supplemental security income (SSI) program in order to achieve three program simplifications. First, we are eliminating clothing from the definition of income and from the definition of in-kind support and maintenance. As a result, we generally will not count gifts of clothing as income when we decide whether a person can receive SSI benefits or when we compute the amount of the benefits. Second, we are changing our resource-counting rules in the SSI program by eliminating the dollar value limit for the exclusion of household goods and personal effects."

"As a result, we will not count household goods and personal effects as resources when we decide whether a person can receive SSI benefits. Third, we are changing our rules for excluding an automobile in determining the resources of an SSI applicant or recipient. We will exclude one automobile (the 'first' automobile) from resources if it is used for transportation for the individual or a member of the individual's household, without consideration of its value. These changes will simplify our rules, making them less cumbersome to administer and easier for the public to understand and follow. Our experience of nearly 30 years of processing SSI claims indicates that these simplifications will have minimal effect on the outcome of SSI eligibility determinations."

DATES: These regulations are effective on March 9, 2005.

The Social Security Administration has revised the rules for counting the value of personal property when determining eligibility for Supplemental Security Income (SSI). The new rules will make it easier to qualify by clarifying that there will be no limit on the dollar value of personal property or a vehicle used by the recipient or a member of his or her household. The rule also states that gifts of clothing will no longer count as income. The changes to SSI eligibility impact Medicaid because anyone who qualifies for SSI is automatically eligible for Medicaid as well.

The explanation of the rule change was printed in the Federal Register February 7, 2005 (Volume 70, Number 24):

"We are revising our regulations that explain how we determine an individual's income and resources under the supplemental security income (SSI) program in order to achieve three program simplifications. First, we are eliminating clothing from the definition of income and from the definition of in-kind support and maintenance. As a result, we generally will not count gifts of clothing as income when we decide whether a person can receive SSI benefits or when we compute the amount of the benefits. Second, we are changing our resource-counting rules in the SSI program by eliminating the dollar value limit for the exclusion of household goods and personal effects."

"As a result, we will not count household goods and personal effects as resources when we decide whether a person can receive SSI benefits. Third, we are changing our rules for excluding an automobile in determining the resources of an SSI applicant or recipient. We will exclude one automobile (the 'first' automobile) from resources if it is used for transportation for the individual or a member of the individual's household, without consideration of its value. These changes will simplify our rules, making them less cumbersome to administer and easier for the public to understand and follow. Our experience of nearly 30 years of processing SSI claims indicates that these simplifications will have minimal effect on the outcome of SSI eligibility determinations."

DATES: These regulations are effective on March 9, 2005.