Example

The customer and her spouse gave their home to their son last March, receiving no compensation.

The customer applies for ALTCS in January. A transfer penalty period of 22 months is assessed, beginning January 1, and ending October of the next year. The customer is approved for ALTCS Acute beginning January 1.

On December 18, the customer’s spouse applies for ALTCS and is approved on January 4th. When the spouse is approved in January, there are 10 months left of the penalty period. Beginning January, the remaining 10 months of the penalty period are equally divided between the spouses. Each spouse has a penalty period of 5 months beginning January 1, and ending May 31.

One of the spouses dies in April. The remaining month of his half of the penalty period (for May) is applied to his spouse, extending her penalty period to June 30.