Exceptions

There are two exceptions for applying the home equity limit. Do not apply the limit when either of these exceptions is met:

The client has been continuously enrolled in MA-LTC since before January 1, 2006.

Example:
Bert has resided in an LTCF since February 1, 2005. He has been an MA-LTC enrollee since December 1, 2005. His home has an equity value of $750,000.

Action:
Conclude that Bert meets an exception because he has been enrolled in MA-LTC since before January 1, 2006. Do not apply the home equity limit. Keep in mind, the value of Bert’s home will be a counted asset if a homestead exclusion does not exist.

A dependent relative lives in the home.
For purposes of the Home Equity Limit, a dependent relative is:
- The spouse of the MA-LTC client.
- A child or ward of the client or client’s spouse under age 21.
- A blind or permanently and totally disabled child of any age of either the client or the client’s spouse. The disability must be verified by SSA or SMRT.

Example:
Kari is requesting MA-LTC to receive services through the CADI waiver in her home. Her husband, Frank, and their 10-year old daughter live in the home with her. Their home has an equity value of $750,000.

Action:
Conclude that Kari meets an exception because her husband and her child under age 21 live in the home. Do not apply the home equity limit requirement. Continue to exclude the home’s value from the asset limit because Kari's dependent relatives (her spouse and child under age 21) reside in the home.

Remember, being exempt from asset limits is not an exception to this requirement.

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Home Equity Limit

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