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Medical Services Policy Manual, Section H

H-300 Transfer of Resources

H 320 Income Transfers

H-320 Income Transfers MS Manual 01/01/14 As the definition of assets includes income to which an individual is entitled but does not receive, a penalty for transfer must be considered when, for example, an individual takes action to: 1. Irrevocably waive pension income; 2. Waive an inheritance; 3. Divert income to another recipient; or 4. Give away income during the month of receipt by the IS/CS.

The penalty period due to the uncompensated value of an income transfer is determined according to MS H-322. Amounts of uncompensated value and their periods of consideration may be affected by the receipt of compensation at a later time. Refer to MS H-317 for treatment. H-321 Failure to Apply for Benefits MS Manual 07/13/15 Federal regulations require that, as a condition of eligibility, an individual must take all necessary steps to obtain any annuities, pensions, retirement, and disability benefits to which the individual is entitled. These benefits include, but are not limited to, veterans’ compensation and pensions, social security benefits, railroad retirement benefits, and unemployment compensation. If an individual fails to access any benefits to which he is entitled, he will not be eligible for Medicaid. If otherwise eligible, Medicaid coverage will begin/resume on the first day of the month that the individual takes the necessary steps to obtain the other benefits. H-322 Determination of Uncompensated Value and Penalty Period When Income Has Been Diverted or Waived MS Manual 01/01/19 When income has been given away, the penalty period during which vendor payment will not be paid will be determined according to the amount of income not received, based on the life expectancy of the individual who is being penalized. (Re. Appendix L)