CHIP ASSETS TEST POLICY

updated 04/15/04

BACKGROUND:

Section 2.46 of HB 2292, 78th Legislature, Regular Session, authorized the Texas Health and Human Services Commission (HHSC) to establish eligibility standards for the Children's Health Insurance Program (CHIP) regarding the type and dollar value of allowable assets for a family whose gross family income is above 150% of the Federal Poverty Level (FPL). While HHSC's administrative rules were amended in August 2003 to include a general requirement for the assets test, HHSC has determined that those rules need to be expanded to contain the detailed procedures for the assets test. This process will involve publication in the Texas Register of proposed rules containing an expanded explanation of the assets test, a public comment period on the proposed rules that will include a public hearing, and publication in the Texas Register of final adopted rules.

The assets test policy outlined in the proposed rules published in February 2004 is summarized below.  Public hearings on the proposed rules were held on March 15th and 16th. Final adopted rules have not yet been published.

ASSETS TEST POLICY:

General Policy

• To qualify for CHIP, households with gross incomes above 150% FPL must own $5000 or less in assets, which is defined as the sum of countable liquid assets and excess vehicle value for countable vehicles. Real property, such as a home, is not countable as an asset.
• The assets test will apply only to new or renewing applicants.

Liquid Assets

• A household will provide a single value that represents the total value of the household's liquid assets.
• Applicants and enrollees will self-declare the total amount of their liquid assets on their application/renewal forms.
• Countable liquid assets include:
  • cash value of checking and savings accounts (after the household pays their monthly bills);
  • money remaining from the sale of a homestead;
  • cash on hand;
  • cash value of stocks (if they were sold today);
  • cash value of bonds (if they were cashed today); and
  • cash value of savings certificates (if they were redeemed today).

Vehicles

• Vehicles counted as an asset:
  • Vehicles owned by (for which the title is in the name of) a CHIP household member. This includes any operable and licensed:
    • automobile;
    • truck;
    • motorcycle;
    • SUV;
    • van; or
    • motor home (including campers and RVs).
• Vehicles not counted as an asset under any circumstances include:
  • trailers, mobile homes, boats, all-terrain vehicles (ATVs), tractors, and farm equipment;
  • vehicles owned by friends or family outside the CHIP household, but used by the CHIP family;
  • leased vehicles; and
  • vehicles owned by a business.
• Vehicles exempt from being counted as an asset based on circumstances include:
  • only under the following conditions, any vehicle worth less than $15,000 and one vehicle worth more than $15,000,:
    • if the vehicle is used more than 50% of the time to produce income for the CHIP household (e.g., taxis, delivery vans, glazier's trucks, etc.);
    • for self-employed individuals, if the vehicle is used more than 50% of the time to carry equipment or employees to worksites;
    • if the vehicle (automobile, truck, SUV, van, camper, motor home, camper, RV, etc.) is serving as the family's only home;
    • if the vehicle is necessary to carry fuel or water, and the family cannot access fuel/water by any other means (i.e., the family's home does not have access to water lines/gas/electricity); or
    • if the vehicle has been modified (with a lift, ramp, hand controls, etc.) to provide transportation for a disabled household member.
• For countable vehicles:
  • The value will be the lowest trade-in/wholesale value listed in the Hearst Corp./NAR Division Black Book and will be determined:
    • based on the information provided by the household regarding the vehicle's make, model, and year; and
    • assuming the vehicle has no special options.
  • If the household has no totally exempt vehicles:
    • the first $15,000 of the value of the household's highest countable vehicle is exempt, and any value over $15,000 for the highest countable vehicle is considered excess vehicle value and is counted towards the household's $5000 assets limit; and
    • the first $4,650 of the value of any additional countable vehicle is exempt, and any value over $4,650 for each additional countable vehicle is considered excess vehicle value and is counted towards the household's $5,000 assets limit.
  • If the household has one or more exempt vehicles, the first $4,650 of the value of each countable vehicle worth more than $4,650 is exempt. The value in excess of $4,650 is considered excess vehicle value and is counted towards the household's $5000 assets limit.