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Chapter: 1600 Assets Program: MSSI, SFP 43

1640.0600 TRANSFER OF ASSETS (MSSI) At application and eligibility reviews, individuals must provide information regarding assets transferred prior to the application or eligibility review. The time periods for asset transfers and the specific policy for transfer of assets vary by program. 1640.0606 Transfer of Assets and Income (MSSI) Apply transfer of assets and income policy to the Institutional Care Program (ICP), institutionalized MEDS-AD, institutionalized Hospice, Home and Community Based Services Programs (HCBS), and the Program for All-Inclusive Care for the Elderly (PACE). Apply this policy to transfers made by SSI-Direct Assistance (cash) recipients applying for these programs as well as non-SSI recipients.

Note: Do not apply transfer policy to Community Hospice, ICF/DD, state mental hospital programs or other SSI-related community Medicaid Programs.

A transfer occurs when an individual, their spouse, a legally authorized representative, or a joint owner of a jointly held asset does not receive fair compensation when:

1. disposing of an asset (by selling it or giving it away) or decreases the extent of the individual's or spouse's ownership interest in an asset; or 2. decreasing the value of a countable asset in the process of converting it to an excluded asset.

When an asset or income is disposed of or transferred for less than fair market value within the transfer look-back period, the individual may be ineligible for Medicaid nursing facility services and HCBS services for a specified period of time.

A transfer is presumed to be made for the purposes of obtaining Medicaid eligibility and a period of ineligibility will be imposed unless the individual presents convincing evidence of one of the following:

1. the individual intended to dispose of the assets either at fair market value (FMV) or in exchange for other valuable compensation (for example, support and/or maintenance); or 2. the asset was transferred solely for reasons other than to become eligible for Medicaid; or 3. the transfer was considered allowable under policies in passages 1640.0609.03, 1640.0609.04, 1640.0610, 1640.0611 or 1640.0612; or 4. all of the assets transferred for less than fair market value have been returned to the individual (refer to passage 1640.0620); or 5. imposing the transfer penalty on the individual would place an undue hardship on the individual (see passage 1640.0613).

If a person is ineligible due to the uncompensated value of a transfer, they are ineligible for Medicaid nursing facility, HCBS or PACE services. However, they are entitled to regular Medicaid benefits if they meet all other factors of eligibility (including level of care). This coverage group is identified as "MI T" on the FLORIDA system.

Note: Continue to verify all other factors of eligibility while exploring the possibility that a transfer of assets without fair compensation occurred. If assets are transferred on or after 11/1/07, do not deny ICP for a transfer of assets if there is any other reason the individual does not qualify for a long term care program. The individual must be determined eligible on all factors, including placement and level of care, before a transfer penalty may be imposed.