TN 12 (08-00)

A. Background

Section 206 of P.L. 106-169 (Foster Care Independence Act of 1999) provides for a period of ineligibility for SSI (up to 36 months) for an individual who disposes of resources for less than FMV. This applies to resource transfers made on or after 12/14/99. SSA is required to notify the public about this new penalty provision as well as the potential effect of a transfer on Medicaid eligibility.

B. Policy

SSA must inform all SSI applicants and recipients about the transfer of resources penalty and the Medicaid transfer of assets penalty.

C. Procedure

NOTE: If the individual is blind or visually impaired, see instructions at NL 01001.010 for more information on the special blind or visually impaired notice options.

For all SSI applications and redeterminations, in lieu of handing out copies of SSA Publication No. 05-11041 or the language in SI 01730.047, hand out reproductions of the language in SI 01150.010D. which replaces the transfer language on Form SSA-3073. Use this language until revised publications are received.

For redeterminations, provide the language in SI 01150.010D. and line through the transfer of assets language on page 2 of Form SSA-3073 (Important Messages from Your Social Security Office).

D. Exhibit--Transfer of assets handout language

IMPORTANT INFORMATION ABOUT SUPPLEMENTAL SECURITY INCOME

If you are applying for or receiving Supplemental Security Income (SSI), the following information is important to you.

WHAT ARE RESOURCES FOR SSI

Resources are things that you own and can use to get food, clothing, or shelter. Resources can include:

• cash;

• real property such as a house or land; or

• personal property such as a car, bank accounts, or investments like stocks, bonds or life insurance.

WHAT HAPPENS WHEN YOU GIVE AWAY OR SELL A RESOURCE

You may not be able to get an SSI check for a period of time if you, your spouse, or another person gives away your resource or sells it for less than it is worth. This period may be up to 36 months, depending on how much the resource was worth and how much you got for it.

You also may not be able to get SSI if you, your spouse, or someone else puts resources or other things you own or have a right to in a trust.

REPORTING TO YOUR STATE MEDICAID AGENCY

SSA uses information about your resources to decide if you can get SSI. SSA also gives your State Medicaid agency information that we have about things you may have given away or sold for less than they are worth. Your State Medicaid agency uses this information to decide if you can get Medicaid.

IF YOU HAVE QUESTIONS ABOUT SSI

If you have questions about SSI, including how resources can affect your eligibility, you can contact your local Social Security office or call us toll free at 1-800-772-1213. We will answer your questions about how resources affect your SSI.

IMPORTANT INFORMATION ABOUT MEDICAID

If you have Medicaid, or you are filing for Medicaid, the following information about assets is important to you.

WHAT ARE ASSETS FOR MEDICAID?

Your State looks at all your assets when it decides if you can get Medicaid. Your assets can include:

• money you or your spouse get from wages or self-employment,

• any other money you or your spouse get, such as money from Social Security or friends or relatives,

• any free food, clothing or shelter you or your spouse get,

• things you or your spouse own, like bank accounts or real estate,

• money or property that you, your spouse or someone acting for you placed in a trust, and

• any money or property which you and your spouse have a right to get but don't get because of something:

• you did, or

• your spouse did, or

• someone else did who was acting for you or at your request.

Medicaid may count some things as assets that we do not count for SSI. For example, your State may make you ineligible for Medicaid if you give away or sell certain things for less than they are worth, even if SSA does not make you ineligible for SSI.

WHAT HAPPENS WHEN YOU GIVE AWAY OR SELL AN ASSET?

Medicaid may not pay for certain health care for you for a period of time if you, your spouse, or someone else takes an asset of yours and gives it away or sells it for less than what it is worth. Medicaid also may not pay for certain health care if your assets are used to set up a trust that makes payments to someone else or cannot make payments to you or for your benefit.

This rule usually applies to people in nursing homes and people in other places such as hospitals that have nursing services like those in nursing homes. This rule can also apply to people who:

• get care at home or in their community under special programs called waivers, or

• will soon need these services.

At times this rule also applies to people who are getting other kinds of services, such as home health care, help with activities of daily living, or other forms of long-term care.

REPORTING TO YOUR STATE MEDICAID AGENCY

Your State Medicaid agency uses these rules about assets to decide if you can get Medicaid. SSA will give your State Medicaid agency information SSA has about any assets you may have given away. You also must tell your State Medicaid agency any time you give away or sell an asset or set up a trust.

IF YOU HAVE ANY QUESTIONS ABOUT MEDICAID

If you have any questions about Medicaid, including how your assets can affect coverage, please contact your State or local welfare, public health, or social services agency that handles Medicaid. They can answer your questions about how your assets affect your Medicaid.