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UNOFFICIAL 1725.1-42 (A) The individual did not require long- term care services at the time of the transfer; (B) The individual was living independently at the time of the transfer; (C) The individual did not have a pre- existing condition that could have led to the need for long-term care or assisted living services at the time of the transfer; (D) The transfer was not within the individual's control (e.g. court ordered); or (E) A diagnosis of a previously undetected disabling condition that led to the need for long-term care services occurred after the date of transfer. (5) The asset transferred for less than fair market value has been returned. (A) The returned asset must be evaluated for the impact on the individual’s eligibility for Medicaid. (B) If the entire transferred asset has been returned, the penalty period is negated. Coverage of long-term care services shall be provided for any portion of a penalty period that was applied prior to the return of the asset. (C) If only a portion of the transferred asset has been returned, and the individual is eligible for coverage of long-term care services, the penalty period shall be recalculated based upon the balance of the unreturned asset. (i) The end date of the recalculated penalty period shall be applicable if it exceeds the amount of the penalty period already applied; and (ii) Coverage of long-term services shall be provided for the portion