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

TN 44 (02-26)

HI 03035.020 Verification Process for Liquid Resources

A. Introduction to the verification process

Applications go to the verification process when the comparison of application data and agency data for resources falls within certain tolerances.

This section provides additional instructions specifically for verification of cash and financial accounts.

To document verification determinations, follow instructions in HI 03035.006 Verification and Documentation Process for Medicare Application Processing System (MAPS) and HI 03035.007Verification and Documentation Instructions for Internal Revenue Service (IRS) Data within the Medicare Application Processing System (MAPS).

NOTE: 

Under Public Law 110-275 (The Medicare Improvements for Patients and Providers Act of 2008), the cash surrender value (CSV) of a life insurance policy is not countable as a resource for Medicare Part D Extra Help applications filed January 1, 2010, or later. Although the system does not select CSV as a verification issue, the claims representative might identify CSV as a development issue while processing another verification issue (e.g., the applicant reported resources incorrectly on the application). In that situation, count CSV as a resource for Extra Help applications filed December 31, 2009, or earlier. If the applicant files an Extra Help application January 1, 2010, or later, CSV is not countable as a resource and the system will not use it in the computation of countable resources.

B. Policy for counting cash and financial institution accounts as resources

When determining Medicare Part D Extra Help eligibility, cash and financial accounts are countable resources.

For more information on how financial institutions count accounts as resources, see HI 03030.015.

C. Policy for resource tolerances for application and agency data comparison

We base the resource tolerances on the 2026 resource limits for Part D Extra Help eligibility, as follows:

  • •

    $16,590 for an applicant;

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    $33,100 for a married couple

NOTE: 

Effective January 1, 2024, The Inflation Reduction Act (IRA) increases the resource limits for full subsidy to the highest single and married resource limits, eliminates the low single and married resource limits, and ends partial subsidy eligibility. For more information about low and high resource limits or to view historical resource limits see HI 03001.005.

The above resource tolerance amounts include the $1,500 individual and $3,000 married couple burial exclusions because the Medicare Application Processing System (MAPS) automatically subtracts $1,500 from individual applicants (or $3000 from married couple applicants), unless applicants report NONE of their resources will be used to pay for funeral or burial expenses.

If an individual or couple does NOT expect to use some of their resources for funeral or burial expenses, ADD $1,500 per individual ($3,000 for a married couple) to the above individual or married couple amounts.

For information about the Medicare Part D subsidy burial fund exclusion, see HI 03030.020.

The sources of agency data used for financial accounts and savings bonds are:

  • •

    Internal Revenue Service (IRS)

  • •

    Bureau of the Public Debt (BPD)

1. Computing agency data for resources

Data provided by the IRS match does not include the amount of money an applicant has in his or her financial accounts. The IRS provides data about the interest income on IRS Form 1099-INT, or dividends and distributions on IRS Form 1099-DIV earned by the applicant’s financial accounts, but does not provide the account balance. Based on the interest reported for the account, the subsidy determination system computes an estimated account balance for the applicant’s financial accounts. The system uses this estimated account balance as the agency data for financial accounts.

2. Resource verification tolerances for single applicants

a. Verification required

The system sends the application to verification if the application data indicates resources of $16,590 or less and the agency data indicates resources over $16,590.

NOTE: 

MAPS will also send applications with an estimated effective date or coverage start date before January 1, 2024 to verification if the application data indicates resources between low and high resource limits for individuals ($9,090.01 and $15,160 respectively in 2023) and the agency data indicates resources over the high resource limit for individuals ($15,160 in 2023). To locate the field in MAPS that captures the estimated effective date see MS 03206.002E.[21-D]. To locate the coverage start date field in MAPS, see MS 03301.008C. [11-D]. For more information about low and high resource limits or to view historical resource limits see HI 03001.005.

EXAMPLE: On the application, an individual alleges they have $500 in cash, $3,500 in his bank accounts, and $6,000 in savings bonds. The application data for the individual indicates resources of $10,000. The agency data, derived from data provided by the IRS and BPD, indicates resources of $17,000. Because application data is under $16,590 and agency data is over $16,590, the system sends the application to verification.

b. Verification not required

The system does not send the application to verification if:

  • •

    the application data and the agency data both indicate resources of $16,590 or less; or

  • •

    the application data indicates resources over $16,590, regardless of the amount of agency data.

EXAMPLE: On their application, an applicant alleges $500 in cash, $8,000 in bank accounts, and $12,000 in a retirement account. The application data for the applicant indicates resources of $20,500. The agency data, derived from data provided by the IRS, indicates resources of $9,500. Because the application data is over the $16,590 resource limit, the application does not go to verification. The system issues a pre-decisional notice to the applicant informing them it appears they are ineligible for Extra Help.

NOTE: 

MAPS will also NOT send applications with an estimated effective date or coverage start date before January 1, 2024 to verification if the application data and the agency data both indicate resources between low and high resource limits for individuals ($9,090.01 and $15,160 respectively in 2023). To locate the field in MAPS that captures the estimated effective date see MS 03206.002E [21-D]. To locate the coverage start date field in MAPS, see MS 03301.008C [11-D]. For more information about low and high resource limits or to view historical resource limits see HI 03001.005.

3. Resource verification tolerances for married couples

a. Verification required

The system sends the application to verification if the application data indicates resources of $33,100 or less and the agency data indicates resources over $33,100.

NOTE: 

MAPS will also send applications with an estimated effective date or coverage start date before January 1, 2024 to verification if the application data indicates resources between low and high resource limits for married couples ($13,630.01 and $30,240 respectively in 2023) and the agency data indicates resources over the high resource limit for married couples ($30,240 in 2023).To locate the field in MAPS that captures the estimated effective date see MS 03206.002E [21-D]. To locate the coverage start date field in MAPS, see MS 03301.008C [11-D]. For more information about low and high resource limits or to view historical resource limits see HI 03001.005.

b. Verification not required

The system does not send the application to verification if:

  • •

    the application data and the agency data both indicate resources of $33,100 or less; or

  • •

    the application data indicates resources over $33,100, regardless of the amount of agency data.

NOTE: 

MAPS will also NOT send applications with an estimated effective date or coverage start date before January 1, 2024 to verification if the application data and the agency data both indicate resources between low and high resource limits for individuals ($13,630.01 and $30,240 respectively in 2023). To locate the field in MAPS that captures the estimated effective date see MS 03206.002E [21-D]. To locate the coverage start date field in MAPS, see MS 03301.008C [11-D]. For more information about low and high resource limits or to view historical resource limits see HI 03001.005.

D. Procedure for the verification of liquid resources

1. Identify and Verify resource exclusions

  • •

    Review MAPS (data and images) to identify resource exclusions.

  • •

    If the applicant incorrectly reported funds as resources, correct the resource amounts on the resource verification screen and document the verification on the MAPS Report of Contact screen (DWRC).

  • •

    If unable to identify resource exclusions, follow below step 2 and contact the applicant.

EXAMPLE: On a Medicare Part D Extra Help application, the “other income” field shows the applicant wrote they received three Coronavirus Disease 2019 (COVID-19) pandemic-related Economic Impact Payments (EIPs) payments, ($1,200 in May 2020, $600 in January 2021, and $1,400 in April 2021). The applicant also wrote they saved some of the money they received from the payments. A technician reviews LIS and SSI exclusion policies and determined the dates and payment amounts the applicant wrote are COVID-19 pandemic-related EIPs per SI 00830.622B.

Spent and unspent (retained) EIPs are excluded from resources indefinitely (see SI 01130.623). The technicians corrects the resource amount on the resource verification screen and follows instructions in this section HI 03035.020D8 and HI 03035.006 to document the verification in MAPS on the DWRC screen.

NOTE 1: 

For information about identifying, verifying, and documenting resource exclusions see HI 03030.020, SI 01130.050, SI 00830.622, and HI 03035.006.

NOTE 2: 

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.

2. Contact the Applicant

If you make contact with someone other than the potentially eligible applicant, use caution to avoid improper disclosure.

Follow the general verification procedure for contacting the applicant including phone contacts and sending the notice in HI 03035.006 Evidence or Information Request Notice.

3. Ask if the applicant agrees with agency data

a. Applicant agrees with agency data

Inform the applicant that we will use the agency data for the Extra Help determination.

b. Applicant disagrees with agency data - discrepancy explained

Determine that the application data is correct for that resource type if the applicant provides a reasonable explanation for the discrepancy.

c. Applicant disagrees with agency data - discrepancy not explained

  • •

    Ask the applicant to provide evidence to resolve the issue (e.g., a recent bank statement, stock certificates, a recent statement of stock accounts) if the applicant is unable to provide an explanation for the discrepancy, or if, in the CS' judgment, the financial account balances are not adequately explained.

  • •

    If the applicant does not have recent account statements, and we require financial account evidence, request the applicant to contact the financial institution for evidence of the account balances. Follow SSI development procedures to verify the value of stocks (SI 01140.220), bonds (SI 01140.250), mutual funds (SI 01140.230), or pension funds (SI 01120.210).

4. Verify cash

Always accept the applicant’s allegation of the amount of cash.

5. Verify U.S. savings bonds

  • •

    Accept the applicant’s allegation without further development, if the agency data indicates ownership of savings bonds and the applicant denies ownership. Process the application based on the applicant’s allegation.

  • •

    Document when we receive savings bond data from the Bureau of Public Debt (BPD) and adjudicate the application using the applicant’s allegations on the MAPS Report of Contact screen.

  • •

    Do not contact the Bureau of Public Debt or the Parkersburg, WV field office to verify ownership of U.S. savings bonds.

NOTE: 

In addition to traditional savings bonds, applicants may now make online purchases of electronic savings bonds, referred to as “book entry securities.” These book entry securities are countable resources for the owner of the account and you must include them in the BPD match. For further information on U.S. Savings Bonds, see SI 01140.240.

6. Verify information using the Medicare system query

The total dollar amount for agency data in the “Bank Accounts Balance” field and the “Stocks and Bonds Balance” field does not reflect the actual source of the agency data.

The Medicare System Query displays available fields from the Medicare database. This query contains information about the source of the agency data for those two fields.

Use the Medicare System Query for information about the data the agency uses, by clicking on the Query option on the verification screen.

7. Document the verification determination

For documentation requirements, see HI 03035.007. Use the MAPS verification screens to document:

  • •

    Verified balance amounts: verified balance amounts for the “Bank Accounts Balance” field and the “Stocks and Bonds Balance” fields;

  • •

    Contacts: the dates and types of contacts made;

  • •

    Evidence: the types of evidence requested and reviewed; and

  • •

    Determination: the CS’ determination of “resolved” or “failure to cooperate.”

NOTE: 

Do not photocopy the evidence for the file; record the evidence on the verification screens.

8. Input the resource determination

  • •

    Use the “Resources” section of the verification screen to input the correct amounts for resources.

  • •

    Select “None,” “Application,” “Agency,” or “New Amount” to indicate the correct amount of resources for the applicant.

  • •

    When you resolve resource issues, go to the “Issue Resolution” section and select “Resolved” and “Submit to Subsidy Determination.”

  • •

    If attempts to contact the applicant were not successful and the applicant does not respond to the Evidence Request Notice within the closeout period, select “Failure to Cooperate” and “Submit to Subsidy Determination.”

E. References

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    HI 03020.050 Unearned Income Exclusions

  • •

    HI 03030.015 How We Count Financial Institution Accounts

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    HI 03030.020 Resource Exclusions

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    HI 03035.006 Verification and Documentation Process for Medicare Application Processing System (MAPS)

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    HI 03035.007 Verification and Documentation Instructions for Internal Revenue Service (IRS) Data within the Medicare Application Processing System (MAPS)

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    HI 03035.010 Income Verification Process

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    SI 01120.210 Retirement Funds

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    SI 01130.050 Guide to Resources Exclusions

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

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    SI 01130.700 Identifying Excluded Funds That Have Been Commingled with Nonexcluded Funds

  • •

    SI 01140.200 Checking and Savings Accounts

  • •

    SI 01140.220 Stocks

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    SI 01140.230 Mutual Fund Shares

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    SI 01140.240 U.S. Savings Bonds

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    SI 01140.250 Municipal, Corporate, and Government Bonds

  • •

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

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0603035020
HI 03035.020 - Verification Process for Liquid Resources - 02/04/2026
Batch run: 02/04/2026
Rev:02/04/2026