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Medical Services Policy Manual, Section H
H 730 Hardship Waiver for Estate Recovery
An individual who is denied Waiver services or nursing facility vendor payment due to a transfer of resources or income for less than fair market value may request an Undue Hardship Waiver. No penalty period for uncompensated transfer will be imposed upon an institutionalized or Waiver individual to the extent that it is determined that denial of eligibility would work an undue hardship. Undue hardship exists if each condition below is met: 1. Counting uncompensated value would make an individual ineligible; 2. Lack of assistance would deprive the individual of food, shelter, and care determined to be medically necessary; 3. The individual’s total resources are not great enough to pay for facility care for one (1) month; and 4. The resource(s) cannot be recovered from the individual(s) to whom the resource(s) was transferred without compensation due to loss, destruction, theft, or other extraordinary circumstance. 5. Undue hardship does not exist when applying the transfer provisions merely would cause the individual inconvenience or would restrict his lifestyle without putting him at risk of serious deprivation. 6. The individual or the individual’s authorized representative may apply for an undue hardship waiver. In addition, a representative from the facility in which an individual is residing may apply for an undue hardship waiver on behalf of the client with either the consent of the client or their personal representative. 7. A decision on the hardship waiver will be made by the DCO Hardship Waiver Committee. If the person who applied for the waiver disagrees with the committee’s decision, they may appeal the decision within thirty-five (35) days of the date of notice about the decision (MS J-100). H-730 Hardship Waiver for Estate Recovery MS Manual 06/01/25 The personal representative or distributee of an estate may apply for a hardship waiver at the time notice of the estate is given to DHS, or within thirty-five (35) days after receiving notice from DHS of intent to recover Health Care payments and the procedures for requesting a hardship waiver.