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care services. (h) Except as provided in (i) of this section, if both spouses are institutionalized or begin receiving home and community-based waiver services in the same month, the penalty period will be divided equally between each spouse. The total of the divided penalty periods imposed on both spouses do not exceed the number of months of the penalty period. (i) If a community spouse is institutionalized or begins receiving home and community-based waiver services after the first long-term care spouse, and a transfer-of-asset penalty period is still in effect for the first long-term care spouse, the remaining penalty period will be divided equally between the two spouses in accordance with (h) of this section. When determining the Medicaid eligibility of the former community spouse who is now also institutionalized or receiving home and community-based waiver services, the department will establish a new look-back period in accordance with (c) of this section. Only a transfer that occurred during the portion of the former community spouse’s look-back period that does not overlap with the look-back period of the first long-term care spouse is subject to a transfer-of-asset penalty, and only the former community spouse is subject to that penalty. (j) When an individual has multiple periods of institutionalization or has multiple applications for Medicaid, regardless of whether the applications were successful, the look-back period will be based on a baseline date that is the first date upon which the individual has both applied for Medicaid and is institutionalized or receiving home and community-based waiver services. If an individual has applied for Medicaid more than once and has made more than one transfer of assets for less than fair market value, the baseline date is that date on which the individual first applied for Medicaid or, if later, made the first transfer of assets for less than fair market value after applying. (k) The following asset transfers do not result in a transfer-of-asset penalty:

(1) a compensated transfer in which the transferor has received a tangible object, service, or benefit that has a value equal to or greater than the value of the equity of the transferred asset;

(2) the transfer of an asset that is an excluded asset under 7 AAC 100.400;

(3) the transfer of an asset in which an individual attempted to dispose of the asset at fair market value, but actually disposed of the property at less than fair market value; the individual must provide the department with documentation to support the value at which the asset was disposed and why that value was used, including changes in the market or condition of the asset;

(4) a transfer made exclusively for a purpose other than to qualify for Medicaid or remain eligible for Medicaid at a future date; a transferor must provide the department with documentation that substantiates the specific purpose for which the asset was transferred;

(5) a transfer in which the transferred asset has been returned to the individual;

(6) the transfer of a home if the home was transferred to

(A) a spouse;