1025.000.00 Cash and Securities (OAA and PTD)

1025.015.10 Treatment of Medical Savings Accounts and Independent Living Accounts

IM-69 June 15, 2017; IM-78 June 28, 2002

Exclude health savings accounts and independent living accounts from resource consideration when:

  • The amounts contained in the account(s) is from the deposits of the individual’s earned income while participating in the program .
  • The amount of exclusion is limited to $5,000 per year and any earnings on such deposits.
    • The $5,000 exclusion is applied per calendar year but
    • The amount can carry from year to year.

    EXAMPLE: Mr. Thompkins is approved for MHABD on 9/1/17. From 9/1/17 to 12/31/17 he deposits $5,000 from earnings he received while on MHABD into a medical savings account and another $5,000 in earnings into an independent living account. In 2018 Mr. Thompkins deposits another $5,000 from his earnings into both his medical savings account and his independent living account bringing the account balance to $10,000 for each account. Mr. Thompkins remains eligible for MHABD coverage as his deposits into the medical savings account and independent living account did not exceed $5,000 during any one year period while he has been receiving MHABD.

  • The exclusion terminates when the account holder reaches age 65.
  • The Eligibility Specialist must determine the excludable amount and make thorough comments to substantiate any excluded or non-excluded amounts.

An independent living account is an account established and maintained to provide savings for transportation, housing, home modification, and personal care services and assistive devices associated with the participant’s disability.