STATE OF ALASKA

Department of Health and Social Services

Division of Public Assistance

TRANSMITTAL NUMBER:  MCManual Change #18

MANUAL:  Aged, Disabled and Long Term Care Medicaid Eligibility Manual

DATE:  January 3, 2011

Beginning January 1, 2011, we are making several changes to incorporate new policy and clarify existing policy.  These changes include:

1. • Funds held in a Qualifying Income Trust are not subject to Medicaid transfer of asset penalty provisions.

1. • The excess home equity amount increases from $500,000 to $506,000.

1. • A personal needs allowance may be increased for fees charged by a court-appointed guardian or conservator.

Other changes are either technical in nature or clarifications that are the result of policy questions or suggestions from the field.

Highlights of these policy revisions are described below. If you have any questions please contact the Policy and Program Development Team at 465-3382 or email dpapolicy@alaska.gov.

OVERVIEW OF CHANGES

MS 526-F  Funds Held in a Qualifying Income Trust

1. • Changes section title from "Transfer of Asset Situations" to "Funds Held in a Qualifying Income Trust."
   • Clarifies that funds held in a qualifying income trust are not subject to transfer of asset penalty provisions.
   • Adds language that a trustee may make advance payments on the trust obligation to reimburse the state for Medicaid benefits provided to the recipient while the trust is in place.  

MS 553-C  Substantial Home Equity

1. • Clarifies that on January 1, 2011, the excess home equity amount is indexed to the Consumer Price Index-Urban (CPIUConsumer Price Index-Urban), and may change each year.

MS 570-E(1)  Personal Needs Allowance

1. • Adds new policy that allows an increase to a recipient's personal needs allowance for monthly fees actually charged the recipient by a court-appointed guardian or conservator, not to exceed $100 per month.

MS 580-A(3)  QMB Eligibility Effective Date

1. • Adds examples to show when QMBQualified Medicare Beneficiaries eligibility begins in annual review situations.

Addendum 1  Program Standards

1. • Updates the year for program standards.  Because there was no Social Security COLACost of Living Allowance adjustment for 2011, most program standards remain the same.
   • Updates the QMBQualified Medicare Beneficiaries, SLMBSpecified Low Income Medicare Beneficiaries, and SLMBSpecified Low Income Medicare Beneficiaries Plus resource limits for 2011.
   • Adds a new table for the excess home equity amount.  Beginning January 1, 2011, the excess home equity amount is indexed to the Consumer Price Index-Urban (CPIUConsumer Price Index-Urban), and may change each year.  In 2011, this amount increased from $500,000 to $506,000.

Addendum 6  Medicare Part D Low Income Subsidy Guide

1. • Updates the resource limits for full and reduced subsidies for 2011.

Addendum 7  Prescription Drug plans in Alaska

1. • Updates the list of Prescription Drug Plans available in Alaska by adding a link to Affiliated Computer Services, Inc. Alaska Medical Assistance web site, which contains the most current listing.