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Medical Services Policy Manual, Section H

H-300 Transfer of Resources

H 323 Income Received and Transferred in the Same Month

There is no penalty when an eligible Institutionalized Spouse gives part or all of his income to a Community Spouse in accordance with the methodology at MS H-200 and on the DHS-712. H-323 Income Received and Transferred in the Same Month MS Manual 08/10/15 If funds are received AND transferred in the same month, the funds are treated as income in the month received and also treated as a resource in that month when considering transfer of resources. The penalty period will begin on the first day of the month of the transfer or the date on which the individual is eligible for Medicaid, whichever is the later date. H-324 When an Ineligible Spouse Gives Away Income MS Manual 01/01/19 No penalty will be imposed on an Institutionalized Spouse (IS) if the individual’s Community Spouse (CS) gives away income belonging to the CS or fails to access CS income, since the CS’s income is not counted toward the IS’s eligibility nor in the budget for vendor payment. However, if a CS takes such action, no payment will be made from the income of the eligible IS’s income to compensate the CS for the income not received. If the Ineligible Spouse of a Waiver applicant/recipient has given away income or refused to access income to which that spouse was entitled, no penalty will be imposed on the Waiver applicant/recipient, since the Ineligible Spouse’s income has no effect on a Waiver applicant/recipient’s eligibility. However, if an ineligible CS later enters a facility or requests Waiver services, the CS will be penalized for the income he/she has given away. H-325 Spousal Transfers in Excess of Community Spouse Minimum Resource Allowance (CSMRA) MS Manual 01/01/14 If an IS transfers resources or income to the CS in amounts greater than the amounts allowed by the spousal rules (Re. MS H-200) no penalty period will be imposed on the IS. However, the assets will still be considered available in the eligibility determination of the IS.