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Chapter: 1600 Assets Program: MSSI, SFP 56

1640.0620 Adjustments to Penalty Period (MSSI) If all transferred assets or income are returned to the individual, the penalty period is eliminated. Eligibility must be evaluated with the returned assets included as though the individual had never transferred the asset or income. Returned assets or income must be counted as available according to standard policy when determining eligibility for retroactive months.

If the transferred asset or income is returned to the individual in part, the eligibility specialist must:

1. reduce the uncompensated value accordingly, 2. refigure the period of ineligibility, 3. evaluate the returned asset according to normal asset rules, and 4. count the returned asset as if it had been available in retroactive months.

If the individual receives additional compensation from the person who received the transferred asset or income, the eligibility specialist must:

1. document the compensation received, 2. refigure the uncompensated value and the penalty period, 3. evaluate the compensation received according to normal asset rules, and 4. count the compensation as if it had been available in the retroactive months. 1640.0621 Case Recording of Transfers (MSSI) Record the following information on CLRC regarding exploration and development of transferred assets:

1. What assets were transferred and their Fair Market Value. 2. Compensation received, with a clear explanation of the determination. 3. Uncompensated value of each transfer and the total of all uncompensated values for a given month. 4. The date the transfer rebuttal/hardship notice was sent (or given) to the individual. 5. Evaluation of the rebuttal and hardship, and if successful, a clear explanation as to basis for determination. 6. Period(s) of ineligibility, including basis for determination, penalty start date(s) and end date(s). 1640.0622 Complete Eligibility Reviews (MSSI) The transfer of asset provisions applies to reviews of currently eligible individuals. No special development is required in eligibility reviews unless you have reason to believe that the individual has transferred an asset. It is not necessary to redevelop transfers which occurred before the initial application or last eligibility reviews.

Transfer policies do apply to the following assets which were previously excluded as countable assets unless the property was transferred to an allowable relative according to 1640.0609.03 or transferred for a reason other than to remain Medicaid eligible:

1. transfers of homestead property, or 2. transfers of property excluded due to a bona fide effort to sell. 1640.0623 Denial of Nursing Facilities Services (MSSI) Institutionalized individuals ineligible for ICP, institutionalized MEDS-AD, institutionalized Hospice, Home and Community Based Services Programs or PACE, solely due to a transferred asset or the amount of their home equity are not eligible for Medicaid payment of nursing home or waiver services but can receive Medicaid payment of other services. Approve general Medicaid benefits if the individual meets all other factors of eligibility (including level of care).