Revision 11-4; Effective December 1, 2011

Exclude the following resources for MBI:

• Retirement-related accounts
• Independence accounts
• Plan to Achieve Self Support (PASS)
• $3000 MBI Resource Exclusion

M-4110 Retirement Accounts

Revision 11-4; Effective December 1, 2011

For the MBI program, Retirement-related accounts are not countable. These accounts include Individual Retirement Accounts, 401(K)s, Tax Sheltered Annuities, and Keoghs that comply with Internal Revenue Service regulations, and Keogh or HR-10 plans which are qualified employer plans set up by a self-employed individual.

 

M-4120 Independence Accounts

Revision 11-4; Effective December 1, 2011

An Independence Account is a separate designated account for health care and/or work-related expenses. For the MBI program, exclude an Independence Account if all:

• funds from the account are used for health care or work-related expenses, and
• deposits into the Independence Account are:
  • from the person's earned income, and
  • equal to or less than 50% of the person's gross earnings for the SSA qualifying quarter.

For the MBI program, count an Independence Account if any:

• funds from the account are used for non-health care or non-work related expenses, and/or
• deposits into the Independence Account:
  • exceed 50% of the person's earnings for the SSA qualifying quarter,
  • are from sources other than the person's earnings or interest earned on the Independence Account, and
  • include income from another person.

Evaluate the account at each complete redetermination. If the person takes action requiring the Independence Account to be counted, the exclusion for the Independence Account is lost. Consider the account as a countable resource for 12 calendar months beginning with the first month after the SSA qualifying quarter during which the exclusion was lost. The person may again request designation of an Independence Account after the 12-month countable period.

Example: John Smith deposited a $900 gift from his grandmother into the Independence Account in May. The exclusion of the Independence Account was lost. The balance of the Independence Account is a countable resource effective July 1 through June 30 of next year. Effective July of next year, Mr. Smith may request designation of an Independence Account.

If counting the resource results in denial, follow current denial process.

 

M-4130 Plan for Achieving Self-Support (PASS)

Revision 11-4; Effective December 1, 2011

See Section F-4400, Plan for Achieving Self-Support (PASS).

Do not count the resources and income that are essential for accomplishing the objectives of an SSA or HHSC approved PASS as long as the PASS is in effect. Any money set aside for a PASS must be identifiable from other funds – usually a separate bank account.

PASS resources are considered "set aside" when they are one or more of the following:

• Owned by the individual
• Used to pay for expenses, including expenses already incurred
• Used directly in the job
• Saved for future expenses

Information concerning a PASS and forms for exemption consideration are located on the SSA website at www.ssa.gov/online/ssa-545.pdf.

Send any PASS that needs HHSC approval to OFS Policy, State Office, Mail Code 2090.

For the MBI program, exclude any PASS resources if:

• Resources are part of the PASS
• PASS is approved and in effect
• Money is in a separate PASS account

For the MBI program, end the PASS if the person has neither:

• Met milestones as scheduled in the PASS
• Set funds aside as agreed in the PASS
• Spent funds as agreed in the PASS

Evaluate the person's ongoing compliance with the PASS at:

• Each complete redetermination
• The report of a change
• Reapplication

If the PASS ends, count the PASS resources the month after the PASS end date. If counting the resources results in the person exceeding the resource limit, follow current denial process.

 

M-4140 $3,000 MBI Resource Exclusion

Revision 11-4; Effective December 1, 2011

Before comparing the countable resources to the $2,000 resource limit and after allowing all exemptions, exclusions and Special MBI Resource Exclusions (Retirement Accounts, Independence Accounts, PASS), deduct an additional $3,000 MBI resource exclusion.