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Chapter: 1600 Assets Program: MSSI, SFP 55

For assets transferred on or after 11/1/07: Add together the uncompensated value of all assets transferred on or after 11/1/07 to obtain the total value of transferred assets and divide the total by the current average private nursing home rate.

Fractional penalty periods apply for transfers made on or after 11/1/07. Do not round down the result. Convert the fraction of a penalty period month to days by multiplying the fraction by 30. The penalty period will be in months and days.

For transfers regardless of date of transaction: If an institutionalized individual is ineligible for assistance due to a transfer of assets or income by the community spouse and the community spouse becomes eligible for ICP, HCBS, or PACE, any remaining period of ineligibility must be apportioned between spouses. This will be done by dividing any new or remaining penalty periods by two and attributing to each spouse. Any odd months may be attributed to the spouse that caused the penalty or attributed according to the couple's (or their representative's) wishes.

The current average private nursing home rate is used for all transfers, regardless of when the transfer occurred. There is no limit on the number of months of ineligibility. 1640.0619 Uncompensated Value Months (MSSI) After establishing a period of ineligibility exists using the policy in 1640.0618, determine when to begin the penalty period.

Penalty begin date for uncompensated transfers made before 11/1/07:

1. For transfers in months that have no overlapping penalty periods, begin the penalty the month the transfer occurred. 2. For months the potential penalty periods overlap by at least one month, use the first transfer date as the date of transfer for all transfers made prior to 11/1/07.

Penalty begin date for uncompensated transfers made on or after 11/1/07: For all uncompensated transfers made on or after 11/1/07, begin the penalty period with the latter of the following dates:

1. The first day the individual would be eligible for long term Medicaid were it not for imposition of a transfer penalty (includes filing an application and meeting all criteria). or 2. The first day of the month the individual transfers the assets. or 3. The first day following the end of an existing penalty period.

The individual must file an application and be determined eligible on all factors except for the transfer of assets in order for the penalty to apply.

Note: Do not deny the case for a transfer reason if the individual fails to cooperate or is ineligible on any other factor.

Reapplications: If an individual reapplies before the end of an existing period of ineligibility, keep the original penalty period even if the transfer occurred before the look-back period applicable to this application. Once established, the penalty period continues even if there are breaks in eligibility.

Note: The period of ineligibility may be adjusted if the transferred asset is returned or additional compensation is received (see 1640.0620). This applies to assets transferred before, on, or after 11/1/07. When multiple penalty periods exist, allow one penalty period to expire before applying a subsequent penalty period.