Effective Dates: 02/04/2026 - Present Previous | Next

TN 24 (02-26)

HI 03030.020 Resource Exclusions

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caution
 Coronavirus Disease 2019 (COVID-19) instructions are available here.

A. Policy for resource exclusions

We do not count all of an applicant’s resources when we determine Part D Extra Help eligibility.

For purposes of determining countable resources for Medicare Part D Extra Help eligibility, we apply the exclusions applicable to the SSI program, unless a specific exception is noted below in section B (HI 03030.020B.) .

For information about income exclusions for Medicare Part D Extra Help, see HI 03020.030 (Earned Income Exclusions) and HI 03020.050 (Unearned Income Exclusions).

SSI resource exclusions applicable to Medicare Part D Extra Help determinations include the following:

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    The applicant’s home. For purposes of this exclusion, a home is any property that the applicant (and spouse, if any) has an ownership interest which serves as the principal place of residence. This property includes the shelter where an applicant resides, the land on which the shelter is located, and outbuildings, see SI 01130.100 (The Home Exclusion);

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    Property of a trade or business, which is essential to the means of self-support, see SI 01130.501 (Essential Property Excluded Regardless of Value or Rate of Return);

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    Non-business property, which is essential to the means of self-support, see SI 01130.502 (Essential Property Excluded up to $6,000 Equity Regardless of Rate of Return) and SI 01130.503 (Essential Property Excluded up to $6,000 Equity If it Produces a 6 Percent Rate of Return);

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    Stock in regional or village corporations held by natives of Alaska, during the twenty-year period in which the stock is inalienable, pursuant to the Alaska Native Claims Settlement Act, SI 00830.830 (Indian-Related Exclusions);

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    Life insurance owned by an applicant (and spouse, if any) to the extent excluded, see SI 01130.300 (Developing Life Insurance Policies);

    NOTE: 

    Effective with Extra Help applications filed January 1, 2010 or after, the cash surrender value (CSV) of life insurance policies will not be counted as a resource.

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    Restricted allotted Indian lands, SI 01130.150 (Interests of Individual Indians in Trust or Restricted Lands);

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    Payments or benefits provided under a Federal statute, other than Title XVIII of the Act where exclusion is required by such statute, when such payments or benefits are retained in the month after the month received, see SI 01130.060 (Exclusions Under Other Federal Statutes);

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    Disaster relief assistance when such assistance is retained in the month after the month received, see SI 01130.620 (Disaster Assistance);

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    Burial spaces, SI 01130.400 (Burial Spaces);

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    Title XVI or Title II retroactive payments, when such payments are retained in the month after the month received, see SI 01130.600 (Retroactive Supplemental Security Income (SSI) and Retirement, Survivors and Disability (RSDI) Payments);

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    Housing assistance, when such payments are retained in the month after the month received, see SI 01130.630 (Cash and In-Kind Items Received for the Repair or Replacement of Lost, Damaged, or Stolen Excluded Resources);

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    Refunds of Federal income taxes and advances made by an employer relating to an earned income tax credit, when such payments are retained in the month after the month received, SI 01130.676 (Federal Tax Refunds and Advanced Tax Credits for SSI Resources);

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    Payments received as compensation incurred or losses suffered, as a result of a crime, when such payments are retained in the month after the month received, see SI 01130.665 (Victims' Compensation Payments);

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    Relocation assistance from a State or local government when such payments are retained in the month after the month received, see SI 01130.670 (Relocation Assistance Payments);

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    Dedicated financial institution accounts, see SI 01130.601 (Dedicated Accounts for Past-Due Benefits Due to Individuals Under 18 Who Have a Representative Payee);

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    A gift to, or for the benefit of, an applicant who has not attained 18 years of age and who has a life-threatening condition, from an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, which is exempt from taxation under section 501(a) of such Code, SI 01130.689 (Gifts to Children with Life-Threatening Conditions);

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    Funds received and conserved to pay for medical or social services; and

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    Cash and in-kind items received for the repair or replacement of lost, damaged, or stolen excluded resources, see SI 01130.630 (Cash and In-Kind Items Received for the Repair or Replacement of Lost, Damaged, or Stolen Excluded Resources).

NOTE: 

Unless identified as exceptions, other SSI exclusions not listed in this section are also considered exclusions for purposes of determining eligibility for the Medicare Part D Extra Help.

For more information about SSI resource exclusions see, SI 01130.050 (Guide to Resource Exclusions).

B. Policy for Exceptions to SSI resource rules

1. Non-liquid resources

Non-liquid resources, other than real property, are not resources for purposes of determining Medicare Part D Extra Help eligibility. Non-liquid resources are defined in HI 03030.001 (What are Resources for Medicare Part D?).

2. Plan for Achieving Self-Support (PASS)

We will not approve a PASS whose sole purpose is to exclude income and resources in order to qualify for the Medicare Part D Extra Help.

3. Burial fund exclusion

a. Amount of exclusion

For purposes of determining Medicare Part D Extra Help eligibility, if the applicant alleges that he or she expects to use some of his or her resources for funeral or burial expenses, $1,500 is excluded from that applicant’s countable resources. For a married couple who live together, we exclude up to $3,000 ($1,500 for each member who alleges that he or she expects to use some of his or her resources for funeral or burial expenses).

We do not ask the applicant for the actual value of the funds that he or she expects to use. Therefore, the exclusion is always $1,500; unless the applicant alleges that he or she does not expect to use any of his or her resources for burial or funeral expenses.

b. Effect of other burial arrangements on this exclusion

The $1,500 burial fund exclusion is not reduced by the value of any burial contract the applicant owns. Furthermore, the $1,500 burial fund exclusion is not affected by the $1,500 life insurance exclusion. The burial spaces exclusion for Extra Help is the same as for the SSI program, i.e., burial space items are excluded regardless of value, see SI 01130.400 (Burial Spaces).

NOTE: If the applicant alleges on the Extra Help application that he or she plans to use any of his or her resources for funeral or burial expenses, we exclude $1,500 without further development. For a married couple living together, we exclude $1,500 each, if both members of the couple allege that resources will be used for funeral or burial expenses.

4. Transfer of resources

Transfers of resources are not considered for purposes of determining Medicare Part D Extra Help eligibility. Therefore, it is not necessary to ask an applicant if resources have been transferred. If the applicant alleges a transfer of resources, do not develop the transfer if the transfer appears to be valid. Absent evidence to the contrary, assume that the alleged transfer is valid. However, if a transfer was not valid, the applicant still owns the resource and it may be countable for purposes of determining Medicare Part D Extra Help eligibility.

5. Effect of Public Law (P.L.) 110-275 (The Medicare Improvements for Patients and Providers Act (MIPPA) of 2008) on counting the cash surrender value (CSV) of life insurance policies

Public Law 110-275 MIPPA, changes the rules for the cash surrender value of a life insurance policy as a resource for Medicare Part D Extra Help applications. The CSV will not be counted as a resource for: applications effectively filed on or after January 1, 2010; and initial determinations that do not become effective before January 1, 2010. An example of an initial determination that becomes effective on or after January 1, 2010 is a periodic or cyclical redetermination initiated in August 2009. However, the CSV is countable as a resource for Extra Help applications effectively filed December 31, 2009, or earlier. The instructions in this section cover both time periods until all applications for 2009 or earlier have been processed.

C. Policy for Resource Exclusions for Coronavirus Disease 2019 (COVID-19)

On March 13, 2020, the COVID-19 pandemic was declared sufficient to warrant an emergency declaration for states, tribes, territories, and the District of Columbia.

On March 27, 2020, the "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act), Public Law 116-136, was signed into law. The CARES Act provided for several types of assistance due to COVID-19.

On December 27, 2020, the "Consolidated Appropriations Act, 2021" (CAA), Public Law 116-260, was signed into law. The CAA provided extensions and additional funding to several of these pandemic assistance programs and authorized several new programs.

On March 11, 2021, the “American Rescue Plan Act of 2021” (ARPA), Public law 117-2, was signed into law. The ARPA also provided extensions and additional funding to several of these pandemic assistance programs and authorized several new programs.

Effective May 11, 2023, the declared disaster ended.

To identify and develop COVID-19 pandemic-related resource exclusions, see charts in SI 00830.622 (Effect of COVID-19 Pandemic-Related Disaster Assistance on SSI Income and Resources). For the treatment of COVID-19 pandemic-related assistance for resources see SI 01130.623 (Developing and Documenting Pandemic-Related Assistance Exclusions-Resources).

For help with alleged COVID-19 pandemic-related disaster assistance not classified as disaster assistance in either of the charts in SI 00830.622, contact your Regional Office.

To document COVID-19 pandemic-related assistance in the Medicare Application Processing System (MAPS) follow instructions in HI 03035.006 (Verification and Documentation Process for Medicare Application Processing System MAPS).

D. Policy for Resource Exclusions for victims of presidentially declared disasters

The SSI resource exclusions applicable to victims of presidentially declared disasters are also applicable for purposes of Medicare Part D Extra Help eligibility determinations, see SI 01130.630A.4. (Cash and In-Kind Items Received for the Repair or Replacement of Lost, Damaged, or Stolen Excluded Resources).

For more information about disaster assistance, see SI 01130.620.

E. References

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    HI 03020.030 Earned Income Exclusions

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    HI 03020.050 Unearned Income Exclusions

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    HI 03030.001 What are Resources for Medicare Part D

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    SI 01130.050 Guide to Resources Exclusions

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    SI 01130.060 Exclusions Under Other Federal Statutes

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    SI 01130.100 The Home Exclusion

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    SI 01130.150 Interests of Individual Indians in Trust or Restricted Lands

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    SI 01130.300 Developing Life Insurance Policies

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    SI 01130.400 Burial Spaces

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    SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return

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    SI 01130.502 Essential Property Excluded up to $6,000 Equity Regardless of Rate of Return

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    SI 01130.503 Essential Property Excluded up to $6000 Equity if it Produces a 6 Percent Rate of Return

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    SI 01130.600 Retroactive Supplemental Security Income (SSI) and Retirement, Survivors and Disability (RSDI) Payments

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    SI 01130.601 Dedicated Accounts for Past-Due Benefits Due to Individuals Under 18 Who Have a Representative Payee

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    SI 01130.620 Disaster Relief

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    SI 01130.623 Developing and Documenting Pandemic-Related Assistance Exclusions - Resources

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    SI 01130.630 Cash and In-Kind Items Received for the Repair or Replacement of Lost, Damaged, or Stolen Excluded Resources

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    SI 01130.665 Victims' Compensation Payments

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    SI 01130.670 Relocation Assistance Payments

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    SI 01130.676 Federal Tax Refunds and Advanced Tax Credits for SSI Resources

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    SI 01130.689 Gifts to Children with Life-Threatening Conditions

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    SI 00830.622 Effect of COVID-19 Pandemic-Related Disaster Assistance on SSI Income and Resources

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    SI 00830.830 Indian-Related Exclusions

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0603030020
HI 03030.020 - Resource Exclusions - 02/04/2026
Batch run: 02/04/2026
Rev:02/04/2026