MEMORANDUM
2004 Memorandums
IM-127      12/02/04
SUBJECT:
INCREASE IN ALLOTMENTS AND THE SPOUSAL SHARE
MANUAL REVISION #33: SECTIONS 1030.035.20, 1030.035.25, 1030.035.10
DISCUSSION:
As a result of an increase in the Consumer Price Index (CPI), the maximum Total Maintenance Standard and the minimum and maximum spousal shares are increased effective January 1, 2005.

NEW ALLOTMENT STANDARD

The new maximum Total Maintenance Standard is $2378.00. Use the new amount whenever determining an allotment for the community spouse effective for January 2005 and later. Determine allotments for December 2004 using the old amount of $2319.00.

The minimum Maintenance Standard remains $1562.00.

NEW SPOUSAL SHARE STANDARDS

The new minimum spousal share is $19,020.00. The new maximum spousal share is $95,100.00. Both amounts become effective for any assessment done on or after January 1, 2005.

WHEN TO RE-EVALUATE SPOUSAL SHARES

  1. Re-evaluate spousal shares at application for MA-Vendor if an assessment has previously been done and EITHER of the following conditions are true:

    • One-half of the couple's combined non-exempt assets at the time of assessment was less than $19,020.00.
    • OR

    • One-half of the couple's combined non-exempt assets at the time of assessment were greater than the maximum spousal share in effect at the time.

      EXAMPLE #1: (one-half the assets at the time of assessment were greater than the new maximum spousal share): Jane and Colby Stilton requested an assessment of assets in November, 1992. The couple's combined non-exempt assets were $180,000.00. One-half that amount is $90,000.00. The maximum spousal share in effect at that time was $68,700.00. Mr. Stilton applies for vendor benefits February 1, 2003. Use $95,100.00 maximum spousal share. Do not change ISMT; note the new maximum on the IM-2.

      EXAMPLE #2: (one-half the assets at the time of assessment were less than the new minimum spousal share): Gustav and Hilda Jarlsberg requested an assessment of assets in December, 1993. The couple's combined non-exempt assets were $22,400.00. Since one-half is $11,200.00, the minimum spousal share in effect at the time of $14,148.00 was used. Mrs. Jarlsberg applies for vendor benefits January 3, 2003. Use $19,020.00 minimum spousal share. Do not change ISMT; note the new minimum on the IM-2.

      EXAMPLE #3: (one-half the assets at the time of assessment were less than the new maximum spousal share current at the time of assessment): Lida and Edam Krantz requested an assessment of assets in December, 1994. The couple's combined non-exempt assets were $147,500.00. Since one-half that amount ($73,750.00) was greater than the maximum spousal share of $72,660.00 in effect at the time, the maximum was used. Lida Krantz applies for vendor benefits on January 18, 2003. Use $73,750.00 as the spousal share, since that is now less than the maximum of $95,100.00. Do not change ISMT; note the amount considered as the spousal share on the IM-2.

  2. Re-evaluate the spousal share on an active MA-Vendor case if the spousal share was less than $19,020.00 and the institutionalized spouse obtains additional resources on or after January 1, 2005. Apply the policy stated in Chapter XI, Section V, pages 25 and 26; allow the institutionalized spouse an additional 90 days protected period to transfer the additional assets to the community spouse.

Do not update the ISMT screen when re-evaluating spousal shares because of this increase in the standards. ISMT should continue to show the total non-exempt assets and spousal share amounts as determined at the time of the assessment. Note the new maximum amounts on the IM-2 when determining vendor eligibility or evaluating resources received by the institutionalized spouse on active cases.

 
NECESSARY ACTION:
  • Review this memorandum with appropriate staff.
  • For allotments calculated for January 2005 and later, use $2378.00 as the maximum Total Maintenance Standard.
  • For assessments calculated for January 2005 and later, use $19,020.00 as the minimum spousal share and $95,100.00 as the maximum spousal share.
  • Re-evaluate spousal share amounts as required.
GLS