8140 Treatment of Resources and Income - The general guidelines of 5200 and 6100 are applicable to persons in institutional arrangements. The following additional rules must also be considered.

8141 Initial Resource Test - When a one spouse enters a medical institution (whether or not the facility is Medicaid approved) on or after September 30, 1989 for at least 30 consecutive days and the temporary stay policy of 8113 is not applied, the total value of the resources owned by the couple which exceed the community spouse resource allowances as determined in accordance with 8144.1 below shall be considered available to the institutionalized spouse in determining eligibility (including prior eligibility) regardless of which spouse owns the resources and regardless of whether the spouses intend to divide resources under the spousal impoverishment provisions. This provision is also applicable regardless of any previously established prenuptial or postnuptial agreement or court-ordered divisions of martial property. The combined resources of the couple must be considered despite such agreement.

If the value exceeding the community spouse resource allowance is less than or equal to the allowable 1 person resource level described in 5130, the person in the institution is eligible. In the month following the first month of eligibility, only those resources owned by the institutionalized spouse shall be considered for determining continuing eligibility on his or her case. This may result in ineligibility for the following months unless the couple intend to transfer assets under the spousal impoverishment provisions.

If the value exceeding the community spouse resource allowance is more than the allowable 1 person resource level, the person shall not be eligible until such time that the excess falls below the 1 person resource standard. At that point, the person becomes eligible for the month the excess is reduced. For the following months, only the resources owned by the institutionalized spouse shall be considered on his or her case. This may result in ineligibility for those months as indicated above.