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.

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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