DHS 103.06(15)(a)1.1. Contributions to any of the recipient’s registered independence accounts are subject to the rules described in this section and to any policies of the respective financial institution governing the account.

DHS 103.06(15)(a)2.2. All contributions to the recipient’s independence account or accounts, including interest, dividends, or other gains from the principal, shall be treated as an exempt asset for the purpose of calculating eligibility for any SSI-related MA.

DHS 103.06(15)(a)3.3. The purpose of an independence account is to allow the recipient to purchase any items or services that may aid in his or her pursuit of personal or financial independence.

DHS 103.06(15)(a)5.5. Retirement or pension accounts registered as independence accounts are not required to remain as separate holdings from the recipient’s other non-exempt retirement or pension assets.

DHS 103.06(15)(a)6.6. The county agency shall monitor the recipient’s independence account as described in the medicaid review period for the medicaid purchase plan. The review process shall include verifying all contributions to the recipient’s independence account with the financial institution holding the recipient’s account.

DHS 103.06(15)(a)7.7. The sum total a medical assistance recipient deposits in all independence accounts may not exceed an amount equal to 50% of the recipient’s gross earned income for the medicaid review period. If a recipient’s contributions to his or her independence accounts total more than an amount equal to 50% of his or her gross earned income within the medicaid review period, an amount equal to one-twelfth of the contributions greater than an amount equal to 50% of gross earned income shall be added to the recipient’s monthly premium payment under s. DHS 103.087 for the next 12 months of eligibility.

DHS 103.06(15)(b)1.1. A person shall register each independence account with the county agency. A person shall re-register the independence account with the county agency if the financial institution or other information for the independence account changes.

DHS 103.06(15)(b)3.3. The applicant or recipient shall report any changes in personal or financial status that may affect his or her eligibility for medical assistance to the county agency as described in s. DHS 104.02 (6).

DHS 103.06(15)(b)4.4. For all registered independence accounts that are not retirement or pension accounts, the date of account creation may be no earlier than the date a medicaid purchase plan recipient is determined eligible for medical assistance under this section. For all registered independence accounts that are not retirement or pension accounts, the funds in the independence account shall be held separate from a recipient’s non-exempt assets.

DHS 103.06 HistoryHistory: Cr. Register, February, 1986, No. 362, eff. 3-1-86; am. (1) (d), r. and recr. (1) (e), Register, January, 1987, No. 373, eff. 2-1-87; am. (6), cr. (14), Register, July, 1989, No. 403, eff. 8-1-89; am. (2) (b), cr. (2) (bm), r. and recr. (2) (c), Register, December, 1990, No. 420, eff. 1-1-91; am. (1) (b) 1., r. and recr. (4) (b), Register, March, 1993, No. 447, eff. 4-1-93; cr. (15), Register, November, 2000, No. 539, eff. 12-1-00; correction in (15) (b) 3. made under s. 13.92 (4) (b) 7., Stats., Register December 2008 No. 636; correction in (7) (a) 2. made under s. 13.92 (4) (b) 7., Stats., Register June 2017 No. 738; CR 20-068: am. (2) (c) 1. a. to c. Register December 2021 No. 792, eff. 1-1-22; CR 23-046: am. (15) (a) 2. Register April 2024 No. 820, eff. 5-1-24.

DHS 103.063(1)(1) Applicability. This section applies to all applicants for MA and recipients of MA who disposed of a resource at less than fair market value prior to August 9, 1989 and to all inter-spousal transfers occurring before October 1, 1989. Section DHS 103.065 applies to all institutionalized applicants and recipients who divest on or after August 9, 1989, except for inter-spousal transfers occurring before October 1, 1989.

DHS 103.063(1m)(1m) Purpose. This section implements s. 49.45 (17), 1987 Stats., which makes an applicant for or recipient of MA ineligible when the applicant or recipient disposed of a resource at less than fair market value within 2 years before or at any time after his or her most recent application for MA or any review of eligibility for MA. Section 49.45 (17) (d), 1987 Stats., is specifically concerned with an applicant for or recipient of MA who resides as an inpatient in a skilled nursing facility (SNF), intermediate care facility (ICF) or inpatient psychiatric facility and who disposed of homestead property at any time during or after the 2 year period prior to the date of the most recent application or any review of eligibility.

DHS 103.063(2)(a)(a) Amount of divestment. For any person who disposed of a resource, except a homestead or other exempt resource, at less than fair market value within 2 years before or at any time after his or her most recent application for MA, or any review of eligibility, the agency shall determine the amount of the divestment in the following manner:

DHS 103.063(2)(a)1.1. If the compensation received is less than net market value, the difference between the compensation received and the net market value is the divested amount and shall be considered an asset.

DHS 103.063(2)(a)2.2. If the divested amount plus other nonexempt assets are equal to or less than the appropriate assets limit, the divestment shall not be considered a bar to eligibility.

DHS 103.063(2)(a)3.3. If the divested amount plus the other nonexempt assets are greater than the appropriate assets limit, the excess over this limit shall be the amount of divestment to be expended for maintenance needs and medical care.

DHS 103.063(2)(b)1.1. Divestment by any person within 2 years before or at any time after his or her most recent application for MA or any review of eligibility shall, unless shown to the contrary, be presumed to have been made in contemplation of receiving MA. Divestment bars eligibility for MA except as provided in subds. 2. and 3. and par. (c).

DHS 103.063(2)(b)2.2. To rebut the presumption that divestment was made in contemplation of seeking aid, the applicant shall furnish convincing evidence to establish that the transaction was exclusively for some other purpose. For example, the applicant may rebut the presumption that the divestment was done in contemplation of receiving aid by showing by convincing evidence that at the time of divesting the applicant had provided for future maintenance needs and medical care.

DHS 103.063(2)(b)3.3. Divestment shall only be considered a barrier to eligibility when the net market value of all the resources disposed of exceeds the medically needy asset levels in s. 49.47 (4) (b) 3., Stats.

DHS 103.063(2)(b)4.4. Division of resources as part of a divorce or separation action, the loss of a resource due to foreclosure or the repossession of a resource due to failure to meet payments is not divestment.

DHS 103.063(2)(c)1.a.a. If the divested amount is $12,000 or less, when the sum of the divestment has been expended for maintenance needs and medical care of the applicant or recipient or when 2 years have elapsed since the date of divestment, whichever occurs first; or,