SPDP

  State Policy Documentation Project

 

 

 

Table 6: States' Asset Rules Under Their Medicaid
Family Coverage Category
and TANF

Table 6 provides information on the asset limit that a family of three must meet in order to qualify for Medicaid under the family coverage category in each state. It also describes how the first vehicle in a family is treated for purposes of evaluating whether a family meets this asset limit, as well as the asset limit and first vehicle rules that apply under TANF.

When evaluating a family's eligibility for Medicaid, states at a minimum must use the asset limit and the methodologies for deciding what "counts" as an asset that they used in their AFDC programs on July 16, 1996. Under standard AFDC rules from July 16, 1996, families had to have less than $1,000 in assets in order to qualify for benefits. When states evaluated whether families met this asset limit, they were required to disregard the value of a family's home, the equity value of one car up to $1,500, and a selected number of other items. Under the family coverage category, states now can ease or even eliminate the asset test that applies to families with children using the "less restrictive methodologies" option. For example, a state that wanted to effectively increase its asset limit to $10,000 could "disregard" (i.e., not count) $9,000 of families' assets toward the limit. Thus, a family with $10,000 in assets would be treated as having "countable" assets of $1,000 and would meet the $1,000 asset limit ($10,000 - $9,000 in disregarded assets = $1,000 in "countable" assets, an amount that is equal to the asset limit of $1,000). By disregarding all assets, a number of states have effectively eliminated the asset test for families with children seeking Medicaid coverage.

In TANF, states can set their asset limits at whatever level they deem appropriate, as well as define what counts as an asset.

Column 1: Column 1 displays the asset limit that a state uses for a family of three under its family coverage category. If a state has adopted an across-the-board disregard of assets, this column displays the effective asset limit in the state for a family of three after taking into account the disregard. For example, if a state with a $1,000 asset limit does not count the first $9,000 of a family's assets, this column would read "$10,000" .

Column 2: Column 2 describes how states with asset limits treat a family's first vehicle. Note that if a family has a second vehicle, these same policies may not apply to the second vehicle.

Column 3: Column 3 displays the asset limit that a state uses for a family of three under its TANF program. Note that in some states, this limit may vary depending on whether the family includes an elderly or disabled member.

Column 4: Column 4 describes how states treat a family's first vehicle when evaluating TANF eligibility. Note that if a family has a second vehicle, these same policies may not apply to the second vehicle.

Column 5: Column 5 indicates whether or not a state's asset limits and treatment of first vehicles for families with children are the same under Medicaid and TANF.

Unless otherwise noted, Table 6 presents information on the Medicaid eligibility rules used by a state under its family coverage category. States marked with an "*" have not yet established such a category, but instead cover families with children not on welfare through a medically needy category. States marked with a "**" also have not established such a category, but instead cover such families under an 1115 waiver expansion. In these cases, Table 6 reflects the policies used by the state to determine the eligibility of families with children under its medically needy or 1115 waiver rules.

 

Table 6
States' Asset Rules Under TANF and the
Medicaid Family Coverage Category

State Medicaid
Asset limit
Medicaid
Treatment of first car
TANF
Asset limit
TANF
Treatment of first car
Are the Medicaid and TANF asset rules the same?
Totals         25 Yes
26 No
Alabama $2,000 Disregard value of one vehicle $2,000 Disregard value of one vehicle Yes
Alaska $1,000 Disregard value of one vehicle $1,000 Disregard value of one vehicle Yes
Arizona $2,000 Disregard value of one vehicle $2,000 Disregard value of one vehicle Yes
Arkansas $1,000 Disregard value of one vehicle $3,000 Disregard value of one vehicle No
California $3,150 Disregard fair market value of one or more vehicles up to a total of $4,650 $2,000 Disregard fair market value of one or more vehicles up to a total of $4,650 No
Colorado $2,000 Disregard value of one vehicle $2,000 Disregard value of one vehicle Yes
Connecticut (14) $3,000 Disregard equity value of one vehicle up to $9,500 or one vehicle used to transport a handicapped person

$3,000

Disregard equity value of one vehicle up to $9,500 or one vehicle used to transport a handicapped person Yes
Delaware (15) $1,000 Disregard equity value of one vehicle up to $4,650 $1,000 Disregard equity value of one vehicle up to $4,650 Yes
District of Columbia No asset test

n/a

$2,000

Disregard fair market value of one vehicle up to $4,650 No
Florida $2,000 For families subject to work requirements, disregard vehicles with a combined value of up to $8,500; for families not subject to work requirement, disregard one vehicle with a value up to $8,500 $2,000 For families subject to work requirements, disregard vehicles with a combined value of up to $8,500;
for families not subject to work requirement, disregard one vehicle with a value up to $8,500
Yes
Georgia $1,000 Disregard the equity value of one vehicle up to $4,650 $1,000 Disregard equity value of one vehicle up to $4,650 Yes
Hawaii** $2,000 Disregard value of one vehicle for daily use or fair market value of one vehicle up to $4,500 $5,000 Disregard value of one vehicle No (but, HI also provides Medicaid to all TANF recipients)
Idaho $1,000 Disregard equity value of one vehicle up to $1,500

$2,000

Disregard fair market value of one vehicle up to $4,650 No
Illinois No asset limit n/a $3,050 Disregard value of one vehicle No
Indiana $1,000 Disregard equity value of one vehicle up to $5000. $1,500 Disregard equity value of one vehicle up to $5,000 No
Iowa $2,000 for applicants; $5,000 for recipients Disregard equity value of one vehicle up to $3,916

$2,000 for applicants;
$5,000 for recipients

Disregard equity value of one vehicle up to $3,916 Yes
Kansas $2,000 Disregard value of one vehicle

$2,000

Disregard value of one vehicle Yes
Kentucky $1,000 Disregard equity value of one vehicle up to $1,500 $2,000 Disregard value of one vehicle No
Louisiana $1,000 Disregard equity value of one vehicle up to $10,000 $2,000 Disregard equity value of one vehicle up to $10,000 No
Maine $2,000 Disregard value of one vehicle $2,000 Disregard value of one vehicle Yes
Maryland $2,000 Disregard value of one vehicle $2,000 Disregard value of one vehicle Yes
Massachusetts** No asset limit n/a $2,500 Disregard fair market value of one vehicle up to $5,000 No (but, MA also provides Medicaid to all TANF recipients)
Michigan $3,000 Disregard equity value of one vehicle up to $1,500 $3,000 Disregard the value of all vehicles No
Minnesota (16) $6,200 Disregard value of first vehicle (17) $2,000 for applicants; $5,000 for recipients Disregard fair market value of any number of vehicles up to $7,500; any value over $7,500 is treated as if it were equity value No
Mississippi No asset limit

n/a

$2,000 Disregard value of one vehicle No
Missouri No asset limit n/a $5,000 for recipients who sign a self-sufficiency pact;
$1000 for applicants and other recipients

Disregard value of one vehicle

No
Montana $3,000 Disregard value of one vehicle

$3,000

Disregard value of one vehicle Yes
Nebraska* $6,000 Disregard value of one vehicle used for medical or employment purposes

$6,000

Disregard value of one vehicle used for medical or employment purposes Yes
Nevada $2,000 Disregard value of one vehicle $2,000 Disregard value of one vehicle Yes
New Hampshire $1,000 for applicants; $2,000 for recipients Disregard equity value of one vehicle for each parent/caretaker

$1,000 for applicants;
$2,000 for recipients

Disregard equity value of one vehicle for each parent/caretaker Yes
New Jersey $2,000 Disregard fair market value of one vehicle up to $9,500

$2,000

Disregard fair market value of one vehicle up to $9,500 Yes
New Mexico $1,500 in liquid assets and $2,000 in other assets Disregard value of one vehicle

$1,500 in liquid assets and $2,000 in other assets

Disregard value of one vehicle Yes
New York $3,000 Disregard either the fair market value of one vehicle up to $4,650 or the equity value of $1,500, whichever is more favorable.

$2,000

Disregard fair market value of one vehicle up to $4,650 No
North Carolina $3,000 Disregard fair market value of one vehicle up to $5,000 $3,000 Disregard fair market value of one vehicle up to $5,000 Yes
North Dakota $8,000 Disregard value of one vehicle

$8,000

Disregard value of one vehicle Yes
Ohio No asset limit n/a No asset limit

n/a

Yes
Oklahoma No asset limit n/a $1,000 Disregard equity value of one vehicle up to $5,000 No
Oregon (18) $10,000 for JOBS/JOBS Plus program participants;
$2,500 for applicants and/or ADC families
Disregard equity value of one vehicle up to $10,000 $10,000 for JOBS/JOBS Plus program participants;
$2,500 for applicants and/or ADC families
Disregard equity value of one vehicle up to $10,000 No

(OR's asset rules under Medicaid and TANF differ for reasons not addressed in this table)

Pennsylvania

No asset limit

n/a $1,000 Disregard value of one vehicle No
Rhode Island No asset limit n/a $1,000 Disregard fair market value of one vehicle up to $4,650 or disregard equity value of one vehicle up to $1500. Entire value of one vehicle may be disregarded for certain purposes. No
South Carolina $2,500 Disregard value of one vehicle per working adult

$2,500

Disregard value of one vehicle per working adult Yes
South Dakota $2,000 Disregard fair market value of one vehicle up to $4,650 or equity value up to $1,500 (whichever is most beneficial) $2,000 Disregard fair market value of one vehicle up to $4,650 No
Tennessee $2,000 Disregard equity value of`one vehicle up to $4,600 $2,000 Disregard equity value of one vehicle up to $4,600 Yes
Texas * $2,000 Disregard fair market value of any vehicle(s) up to $4,650 $2,000 Disregard fair market value of any vehicle(s) used for income producing purposes up to $4,650 Yes
Utah* $3,025 Disregard equity value up to $1,500 of one vehicle used for transportation. $2,000 Disregard equity value of one vehicle in excess of $8,000; disregard entire equity value of one vehicle if it is modified to transport a disabled individual No (but, UT also provides Medicaid to all TANF recipients)
Vermont $2,000 (19) Disregard equity value of one vehicle $1,000 Disregard equity value of one vehicle up to $1,500 No
Virginia $1,000 Disregard value of one vehicle $1,000 Disregard fair market value of one vehicle up to $7,500. If fair market value exceeds $7,500, equity value in excess of $1,500 is treated as a countable asset. No
Washington $1000 for applicants and recipients; recipients can also have $3000 in a savings account Disregard equity value of one vehicle up to $5,000 $1000 for applicants and recipients; recipients can also have $3000 in a savings account Disregard equity value of one vehicle up to $5,000 Yes
West Virginia

$1,000

Disregard equity value of one vehicle up to $1,500 $2,000 Disregard value of one vehicle No
Wisconsin $1,000 (20) Disregard equity value of one vehicle up to $1,500

$2,500

Disregard equity value of one vehicle up to $10,000 No
Wyoming $2,500 Disregard value of one vehicle

$2,500

Disregard fair market value of one vehicle up to $12,000 No

NOTES

14. On July 1, 2000, Connecticut will eliminate the asset test for families with children.
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15. Delaware has eliminated the asset test for families seeking coverage under the Diamond State Health Plan, the state's Section 1115 waiver program that offers coverage to uninsured Delaware residents with gross income up to 100 percent of the poverty level.
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16. Minnesota has eliminated the asset test for families seeking coverage under MinnesotaCare, the state's Section 1115 waiver program that offers subsidized coverage for families with children up to 275 percent of the poverty level.
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17. The first vehicle in Minnesota is disregarded only if used for a residence, employment, access to medical care, has been modified to transport disabled person, or if needed to perform essential daily activities due to climate, terrain, distance or similar factors.
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18. Under the Oregon Health Plan, which offers coverage for families with children with gross income up to 100 percent of poverty, the asset limit is set at $5,000.
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19. Vermont has eliminated the asset test for families seeking coverage under its Section 1115 waiver program which offers subsidized coverage to families with children with income up to 150 percent of the poverty level.
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20. Wisconsin has eliminated the asset test for families seeking coverage under BadgerCare, the state's Section 1115 waiver program that offers subsidized coverage to families with children with income up to 185 percent of the poverty level. Once enrolled in BadgerCare, families can retain their coverage until their income rises above 200 percent of the poverty level.
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This page last updated September 02, 2023

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