Previous to the new law, there were no guidelines on the issuing of loans. The new law requires loans made by the Medicaid applicant to be actuarially sound to avoid having them be considered "available resources" when determining eligibility. While the law does not define actuarially sound, it does require the "payments to be made in equal amounts during the term of the loan with no deferral and no balloon payments made." The Act also prohibits the cancellation of the balance of the note upon death (SCIN - Self Canceling Installment Note). It is presumed notes will be required to be paid out over the life expectancy of the applicant to be actuarially sound.
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