Current through all regulations passed and filed through September 16, 2024
(A)
This rule
describes the treatment of stocks, mutual funds, and bonds for purposes of
determining eligibility for medical assistance.
(B)
Stocks held by an
individual, including preferred stocks, warrants and rights, and stock option
purchases.
(1)
Stock shares represent ownership in a business corporation.
Their value shifts with demand and may fluctuate widely.
(2)
The current
market value of publicly traded stock as of the first moment of a given month
is its closing price on the last business day of the preceding month. The stock
closing price, on a given day, can usually be found in the next day's regulator
or financial newspaper. The value of over-the-counter stocks are shown on a
"bid" and "asked" basis. The bid price is used to determine the stock's
value.
(a)
If
the closing or bid price of a stock is not shown, a local securities firm must
determine its value.
(b)
The stock of some corporations not publicly traded is
held within close groups and traded very infrequently. The sale of such stock
is often handled privately and subject to restrictions. The burden of proof for
establishing the value of this kind of stock is on the individual. The
preferred evidence is a letter or other written statement from the firm's
accountants giving their best estimate of the stock's value and the basis for
the estimate, and can include the most recent sale, the most recent offer from
outsiders, the current market value of assets less debts on them, cessation of
activity and sale of assets, and bankruptcy.
(3)
The county
prosecutor or the administrative agency's legal staff shall be consulted for
assistance in determining the value of the stock when the verification of the
current value of the stock of a closely held corporation is questionable,
including when there are indications that the extent of an individual's
ownership is being manipulated to reduce the value of the stock as a countable
resource.
(4)
If the ownership of the stock is shared (i.e., more
than one name is on the face of the stock certificate), each owner owns an
equal share of the value of the stock.
(5)
Shares of stock
in an Alaskan native regional or village corporation, as defined in
43 U.S.C.
1601-
1624
(as in effect on February 1, 2016), are excluded from
resources.
(C)
A mutual fund is determined in the same manner as the
value of a stock.
(D)
The current market value of a municipal, corporate, or
government bond is counted as a resource. If the ownership of a bond is shared,
each owner owns an equal share of the current market value of the
bond.
(E)
The current redemption value of a U.S. savings bond is
a countable resource. If the ownership of the U.S. savings bond is shared, each
owner owns equal shares of the redemption value of the bond.
Replaces: 5160:1-3- 05.5
