States are required by federal law to implement asset verification programs to determine financial eligibility for individuals applying for Medicaid on the basis of age, blindness, or disability.
All states were required to implement electronic asset verification systems (AVS) by 2013; however, by 2018, over a dozen states had still not complied with this requirement. In response, Congress acted to reduce the federal medical assistance percentage for states that have not complied with certain federal requirements by January 2021.
This brief provides background information on financial eligibility for the Medicaid populations subject to asset verification, the evolution of federal requirements for asset verification, and how AVS operates as part of the eligibility determination process. It includes findings from a MACPAC study examining state readiness to meet requirements, efforts by the Centers for Medicare & Medicaid Services to monitor compliance, and the implications of using AVS.
