EXAMPLE 1: Payment Accepted by Institution as Full Payment
An eligible individual, Mr. Robertson, resides in a private for-profit retirement
home during 03/99. He tells the CR that he pays the home $425 per month and there
is no third party payment. The CR believes that $425 is less than the CMV so she contacts
the home for further information. The administrator tells the CR that the charges
are higher sometimes, but that the home accepts $425 as payment in full for Mr. Robertson.
The CR determines that no ISM is countable for the food and shelter provided by the
home. The CR 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
Ms. 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 her application for SSI, Ms. Kelly has no cash income. The
CR contacts the care home and learns that Ms. Kelly signed a document by which the
home extends her credit (i.e., accepts her debt) in the amount of $350 per month.
The administrator states that no other payment is to be made, either by Ms. Kelly
or anyone on her behalf. Since the home accepts this legal indebtedness to pay $350
as payment in full, the CR 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.)