EXAMPLE 1: Payment Accepted by Institution as Full Payment
An eligible individual, Robert, resides in a private for-profit retirement home during
03/99. Robert tells the Claims Specialist (CS) that Robert pays the home $425 per
month and there is no third party payment. The CS believes that $425 is less than
the CMV so the CS contacts the home for further information. The administrator tells
the CS that the charges are higher sometimes, but that the home accepts $425 as payment
in full for Mr. Robertson. The CS determines that no ISM is countable for the food
and shelter provided by the home. The CS does not develop or document the file with
the CMV of the food and shelter since it is immaterial.
EXAMPLE 2: Legal Indebtedness as Payment for Institution's Charges
Kelly, an aged individual, lives in a private for-profit adult care home which customarily
charges $800 per month, of which $400 represents the CMV of the food and shelter.
At the time of Kelly's application for SSI, Kelly has no cash income. The CS contacts
the care home and learns that Kelly signed a document by which the home extends Kelly
credit (i.e., accepts their debt) in the amount of $350 per month. The administrator
states that no other payment is to be made, either by Kelly or anyone on Kelly's behalf.
Since the home accepts this legal indebtedness to pay $350 as payment in full, the
CS determines that the food and shelter provided by the home is not income and puts
a copy of the agreement in the file. (If the CMV of the food and shelter had been
unknown, there would be no need to develop the value because it is immaterial.)