What happens if a person writes a check towards the end of the month but it is not cashed until the following month?
Our New Jersey Medicaid regulations require that an individual own no more than $2,000 of resources as of the first moment of the first day of each month. The first moment of the first day of each month is really the last day of the previous month.
What happens if a person writes a check towards the end of the month but it is not presented for payment or cashed until the following month? Fortunately, the New Jersey Medicaid regulations set forth that any checks that are issued during a month will be evaluated to determine the value of the account for purposes of determining Medicaid eligibility. The applicable New Jersey Medicaid regulation provides that if prior to the first moment of the first day of the month the applicant has drawn a check on a checking account, then the amount of that check shall reduce the value of the account.
A person can easily write a check and date it for an earlier date. Therefore, the New Jersey Medicaid regulations allow the County caseworkers to examine a check register to make sure that the check in question was actually prepared and signed on the date of the check. The New Jersey Medicaid regulation provides that when checks have been drawn on an account, the County Board of Social Services shall review the appropriate account register or check stub to ascertain the actual balance as of the first moment of the first day of the month. The regulation further provides that “full documentation of such circumstances is required”.
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