Indiana Medicaid’s
Perspective of Assets & Income
(Updated June 2001)
Remember, Indiana Partnership policies protect
assets—not income.
Important Note: The Medicaid program uses the term
"resources" to mean assets. The Medicaid program distinguishes
resources and income in determining eligibility and calculating the amount
that a Medicaid recipient must contribute to medical expenses. The Indiana
Partnership policy asset disregard applies to resources. Whether a resource
or income is counted, and how it affects eligibility, depends on many factors.
The information below is general in nature only. It is intended to give
examples of certain types of resources and income. There are many other types
of resources and income that might affect Medicaid eligibility. The listing
of an item below does not necessarily mean that it will count toward
Medicaid eligibility; depending on an individual’s circumstances, some
resources and income might be exempt or unavailable for Medicaid purposes.
For a determination of a specific individual’s circumstance, the
circumstance and all related documents should be submitted to Mike
Staresnick, 402 W. Washington St., Rm. W382, Indianapolis, Indiana, 46204,
for a thorough review.
- Annuities: Prior to being annuitized, the balance is a resource.
After it is annuitized, the payments are income in the month received**.
Withdrawals prior to annuitization are considered resources.
- Bank Accounts and Certificates of Deposit: The balance on the
*first day of the month is a resource. Interest earned is income in the
month received.
- IRAs: Balance in the account on the *first day of the month
(minus any penalty the person would incur for early withdrawal if under age
59 ½) is a resource. Dividends and interest earned is income in the month
received. Withdrawals are considered resources (including minimum
distributions).
- Life Insurance with Cash Value: The cash value is considered a
resource.
- Mutual Funds: Balance in the account on the *first day of the
month is a resource. Dividends or interest are income in the month received.
Capital gains distributions to the fund’s shareholders are income. Shares
that are redeemed are resources.
- Retirement Plans: Whether it is considered a resource or income
depends upon multiple factors. Each retirement plan would need to be
reviewed and considered separately.
- Stocks and Bonds: Balance on the *first day of the month, based
on current share price, is a resource. Dividends are income during the
month received. Shares that are redeemed are considered resources.
*"First day of the month" – Medicaid is concerned about the
applicant’s financial picture as of the first moment of the first day of the
month in which the applicant would be receiving benefits. For more
information about how the date of application affects the date benefits
begin, contact your local office of Family and Children.
**Income earned from resources is counted as income regardless of whether
it is paid directly to the recipient or reinvested into the resource.
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