Library: Policy
317:35-5-41.2. Miscellaneous Personal property
Rule text available at Oklahoma Health Care Authority website.
INSTRUCTIONS TO STAFF 317:35-5-41.2
Revised 1-15-19
1.(a) Effective October 1, 2015, Oklahoma became a Supplemental Security Income (SSI) criteria state.As such, when the individual receives SSI and applies only for Medicaid benefits, the worker is not responsible for verifying the individual's resource eligibility unless he or she provides questionable information.This may occur when the individual reports owning property or liquid resources in excess of the applicable resource standard, per Appendix C-1, Maximum Income, Resource, and Payment Standards.
(b) The worker must verify resource eligibility when the individual applies for a State Supplemental Payment.
2.(a) The individual's statement that he or she does not have money on hand or in a financial institution is sufficient unless there are contrary indications.When there is contrary information or the individual does not have records to verify the amount in a financial institution, the worker obtains verification from the financial institution, when not verified through the Oklahoma Health Authority (OHCA) Asset Verification System (AVS) per (b) of this Instruction.
(b) Staff may verify account information at financial institutions electronically through OHCA AVS.When the account is verified through OHCA AVS additional verification is not needed, unless different from normal deposits and withdrawals are seen.When the account is not verified through OHCA AVS, the worker may verify account information by requesting the individual:
(1) provide his or her account statement; or
(2) sign Form 08AD060E, Request for Release of Information, addressed to the designated financial institution, to authorize release of account information.
(c) Per Section 4001.1 of Title 56 of the Oklahoma Statutes (56 O.S. § 4001.1) money and assets in an individual savings or trust account owned by the designated beneficiary of the account and established to pay qualified disability expenses are excluded, per the Oklahoma Achieving a Better Life Experience (ABLE) Program or an ABLE program in any other state for the purpose of determining eligibility to receive, or the amount of any assistance or benefits, from local or state means-tested programs.An individual may only have one ABLE account.The individual must provide documents to verify the account meets exemption criteria before the funds are exempted from resource and income consideration.
(1) The Oklahoma State Treasurer is responsible for certifying an ABLE account.The program name is Oklahoma STABLE.The program is administered through a partnership with Ohio's STABLE Accounts, backed by Intuition ABLE Solutions, LLC.ABLE account rules state:
(A) only individuals whose disability was established before 26 years of age can set up ABLE Act accounts, and one account is allowed per individual;
(B) there is no limit to the number of persons who can contribute to the ABLE account; and
(C)upon the death of an ABLE Act participant, every dollar remaining in the account must be paid to the state Medicaid agency to repay costs of care received by the individual during life up to the amount Medicaid paid.
(2) At application and renewal, the individual must provide proof from the financial institution of the dates and amounts of money deposited into and withdrawn from the ABLE account in the last 12 months.
(A) The exemption from income and resource consideration applies to money deposited in the account up to the annual federal gift tax exclusion, per Section 2503(b) of Title 26 of the United States Code.The current gift tax exclusion amount is $15,000 per calendar year.Any money deposited in the account in a calendar year that is in excess of the annual federal gift tax exclusion is considered as countable income in the month deposited and as a resource for the following month.The maximum balance in the ABLE account is $300,000.
(B) When money is withdrawn to pay qualified disability expenses, the amount withdrawn is excluded from income or resource consideration.
(i) The individual must verify, preferably from the financial institution, that the withdrawn funds were used for qualified disability expenses.
(ii) Funds withdrawn and not used for qualified disability expenses are considered as income for the month of withdrawal.
(3) Qualified disability expenses means, expenses related to the eligible individual's blindness or disability and approved, per Section 529A of the Internal Revenue Code that are made for the benefit of an eligible individual, who is the designated beneficiary including, but not limited to, expenses for:
(A) education;
(B) housing;
(C) transportation;
(D) employment, training, and support;
(E) assistive technology and personal support services;
(F) health, prevention and wellness, financial management, and administrative expenses;
(G) legal fees;
(H) oversight and monitoring; and
(I) funeral and burial expenses.
3.(a) This is also applicable when both account owners receive SoonerCare.The money in the account is a countable resource.
(b) When the individual dissolves the account as soon as notified, eligibility is not affected.
(c) When both account holders receive SSI, they may share a joint account.The worker only considers each individual’s share of the account in determining his or her eligibility.
4.Examples of funds set aside for burial may include savings or checking accounts, a certificate of deposit, or cash, when the money is clearly designated as being set aside for the individual’s burial.
5.The individual cannot receive the $1,500 revocable burial fund exclusion and an irrevocable prepaid burial fund exclusion.For example, when an individual has revocable burial funds of $4,500 and does not have other funds set aside for burial, the worker considers $3,000 of the cash value as a countable resource.
6.Per the Oklahoma State Insurance Commission, a funeral home cannot be the beneficiary of a life insurance policy used to fund a burial contract.When the individual uses life insurance to fund a burial contract, there must be an irrevocable agreement between the individual and the insurance company.This is in addition to the prepaid burial contract that must also be irrevocable.
7.There is no maximum face value to receive the irrevocable prepaid burial policy or contract exclusion.While it is irrevocable, it is excluded.
8.All life insurance policies must be considered in determining the amount that must be counted toward the resource limit.A life insurance policy that has a face value less than $1,500 cannot have a separate exemption per (c) of this Section.For example, when the individual has life insurance with a cash value of:
(1) $1,500 and has an irrevocable prepaid burial policy with a face value of $10,000, the worker considers the $1,500 cash value life insurance policy as a countable resource;
(2) $5,500 and an irrevocable prepaid burial policy with a face value of $10,000, the worker considers the $5,500 life insurance as a countable resource.In this example, the individual is not resource eligible for SSP, but meets resource standards for Qualified Medicare Beneficiary Plus benefits, when this is the only resource; or
(3) $750, a second life insurance policy with a cash value of $500, and an irrevocable prepaid burial policy with a face value of $15,000, the $1,250 in cash value life insurance is a countable resource and the irrevocable prepaid burial is excluded.
