8173 Continuing Financial Eligibility - When circumstances change, adjustments will be made as follows:
8173.1 Medically Needy - If a person goes from independent living (including a non-Medicaid approved institution or specialized living arrangement) to long term care in a Medicaid approved institution or vice versa, the eligibility base will be changed as per 8131 depending on the age of the individual and applicability of spousal impoverishment. When an individual goes from independent living to long term care in a Medicaid approved institution, financial eligibility shall be recomputed for the actual time in independent living and a one month eligibility base established beginning either with the month of entrance in the case of a child or the month following the month of entrance for adults except as noted in 8113. However, if financial eligibility must be computed in accordance with 8172.2 (2)(b), the independent living base will be continued.
8173.2 Long Term Care to Independent Living - When an eligible individual goes from long term care in a Medicaid approved institution to independent living, a new six month eligibility base shall be established beginning with the month following the month the care arrangement ends for children and for institutionalized spouses for whom the spousal impoverishment income provisions of 8144 have been applied or the month the care arrangement ends for all others. In the latter situations, the amount of the previously established client obligation or the cost of care incurred by the individual in the month of discharge or service termination, whichever is less, shall be applied towards the spenddown for the new base. A new base would not, however, be required for an individual whose financial eligibility was being computed in accordance with 8172.2 (2)(b) and who goes from the adult care home to independent living. The six month base previously established in such cases would continue in these instances.
For all other changes in financial factors, the change will be incorporated into the appropriate eligibility base. Necessary case actions will be taken at the earliest possible time based on advance notice requirements.
8173.3 Long Term Care to HCBS - When an eligible individual goes from long term care in a Medicaid approved institution to an HCBS arrangement, the higher HCBS income standard shall be applied beginning with the month the HCBS arrangement begins and liability recomputed for that month. The resulting patient liability will be assigned entirely to the facility, even in instances where the total cost of care is less than the resulting liability. In these situations, KEES should not be updated with the HCBS information until the living arrangement changes (after the person physically leaves the facility). The new level of care and living arrangement are effective the date of discharge. HCBS Plans of Care may be backdated to ensure proper reimbursement to providers in these situations. Coordination between HCBS care coordinators and eligibility staff is necessary.
8173.4 HCBS to Long Term Care - When an eligible individual goes from an HCBS arrangement to long term care in a Medicaid approved institution, budgeting methodologies are dependent upon the anticipated duration of the stay.
For the first month, if the stay 
	 is expected to exceed the month of entrance and the two following 
	 months, the obligation established for the month of entrance shall 
	 remain in effect but no liability is assigned to the NF and will be 
	 applied to HCBS services provided in the month. LTC budgeting methodologies 
	 begin the month following the month of entrance.
	
	If the HCBS recipient enters a State Hospital, the effective date of 
	 the new Level of Care and Living Arrangement codes is the day following 
	 the day of entrance into the State Hospital. Current coding in place 
	 authorizing HCBS as well as the previously established client obligation 
	 should be left in place for the date of entrance.
	
	If the HCBS recipient enters a Nursing Facility or Swing Bed Hospitals, 
	 a TC (Temporary Care) Living Arrangement code should be entered with 
	 an effective date of the day of NF entrance. The current Level of 
	 Care code should be left in place. This combination of coding will 
	 allow both the NF and the HCBS provider to receive reimbursement for 
	 services provided on the day of entrance. The new Level of Care/Living 
	 Arrangement codes authorizing only NF payment are effective the day 
	 following the day of entrance into the NF.
	
	If the total client obligation is not paid for HCBS care because the 
	 cost of services was less than the obligation, because of this change, 
	 no medical overpayment will be considered.
	 
If the stay is not expected to exceed 
	 the month of entrance and the two following months, HCBS budgeting 
	 methodologies continue for the temporary period. Any HCBS obligation 
	 would be applied to the HCBS services provided in either month and 
	 no obligation applied to the cost of the institutional care. However, 
	 because billing procedures differ for different institutional arrangements, 
	 instructions for handling these situations also differ.
	 
If the HCBS recipient enters 
		 a State Hospital, no changes to LOTC are necessary, and the coding 
		 established for HCBS payment is left in place for the duration 
		 of the temporary period. If a child receiving services through 
		 the SED waiver is approved for the special 14 day funding, HCBS 
		 coding remains in place for the full 14 days. Changes in level 
		 of care and living arrangement would be made effective for the 
		 15th day.
		 
If the HCBS recipient enters 
		 a Nursing Facility or Swing Bed Hospital, the Living Arrangement 
		 code is changed from HC to TC and left in place throughout the 
		 duration of the temporary period. No other changes are necessary. 
		 If the individual is hospitalized in general hospital prior to 
		 entrance into the NF/Swing Bed, the HC code should be left in 
		 place until the NF stay begins. However, the total anticipated 
		 length of stay should not exceed the month of entrance and the 
		 two following months for these provisions to be applicable.
		 
In either case, if the case is initially processed 
		 as being in temporary care and the stay ends up exceeding those 
		 time lines, long term care policies shall then be applied beginning 
		 in the third month following the month of entrance.
		 
For all changes in financial factors, the change 
		 will be incorporated into the appropriate eligibility base. Necessary 
		 case action will be taken at the earliest possible time based 
		 on advance notice requirements.
		 
8173.5 Inter-Home Transfers - When an eligible individual moves from a Medicaid approved institution to another Medicaid approved institution, the following apply:
When both facilities have the same 
	 level of care and the provisions of 8172.2 
	 (1) or 8172.2 (2) (b) are applicable 
	 for both facilities, no additional changes are necessary. The individual 
	 is obligated for the total patient liability, but it is assigned to 
	 the first facility that bills Medicaid for the month.
	
	 the provisions of 8172.2 (2) 
	 (b) are applicable in the new facility only, independent living budgeting 
	 and the new, 6 month base period are effective the month following 
	 the month of the move. LOTC must be updated to reflect the new status 
	 effective the date of admission in the new facility. If 8172.2 
	 (2) (b) is applicable in the previous facility only, LTC budgeting 
	 begins the month of entrance and the base period is shortened to end 
	 the month before the month of change. LOTC is updated to reflect the 
	 new status effective the date of admission in the new facility.
	 
For transfers between facilities with different levels of care, the provisions above apply except that it is necessary to update LOTC to reflect the new living arrangement and/or level of care effective the date the new arrangement begins. The patient liability will be assigned in full to the old facility.