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Medical Services Policy Manual, Section H

H 311 Notifying Individual of Established Uncompensated Value and Penalty Period H-300 Transfer of Resources

H-311 Notifying Individual of Established Uncompensated Value and Penalty Period MS Manual 01/01/19 If otherwise eligible, whenuncompensatedvalue is established, the individual must be advised of that fact before the application or redetermination is completed. The individual will be informed by letter (Form DHS-732) that he/she transferred a resource at less than fair market value and that the uncompensated value will result in a penalty period unless he/she can provide convincing evidence that the action was exclusively for some purpose other than establishing eligibility. A copy of the letter will be scanned in the electronic record. For Home and Community Based Services Waiver (HCBS) applicants, when the criteria at MS H-310 is not met and no penalty period can be imposed, the individual will be sent a DHS-707 informing him/her, that the penalty for transferring a resource for uncompensated value will be total ineligibility for the Waiver program for five years from the date of transfer, unless the individual enters a nursing facility or meets the criteria at MS H-310. If the individual does not respond to the letter, DHS-732, Notification of Asset Transfer at Less Than Fair Market Value, within 15 days, it will be assumed that he does not wish to rebut the presumption that the transfer was for the purpose of establishing eligibility. H-312 Rebuttal of Presumption that Resources Were Transferred to Establish Eligibility MS Manual 01/01/14 When an individual elects to rebut the presumption that the resource was transferred to establish eligibility, he will be informed that it is his responsibility to present convincing evidence that the resource was transferred exclusively for some other purpose. The individual’s statementconcerning the circumstances of the transfer will be obtained and should include (but need not be limited to) the following points: 1. Purpose of transfer of resource; 2. Attempts to transfer resource at FMV; 3. Reasons for accepting less than FMV for the resource; 4. Means of or plans for supporting himself after the transfer; and 5. Relationship, if any, to the person(s) to whom the resource was transferred.