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Title 8: Medicaid Page 21 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Attribution of Resources Revised July 10, 2026 Processing a Medicaid Application After…

1. Mr. W, the institutionalized spouse, has $1,900 in resources attributed to him and is eligible for Medicaid. He jointly owns a CD valued at $20,000. To remain eligible for Medicaid payment to the nursing facility, he must transfer $18,000 of the CD to reduce his ownership down to $2,000. He may transfer the total value if he wishes. 2. Mr. J is determined eligible for Medicaid in a medical institution. The amount of resources attributed to Mrs. J (the community spouse) and owned by Mrs. J is $7,000, which is under the $32,532 minimum. A year later, Mr. J receives an inheritance of $5,000. The IM worker verifies that when Mr. J received the inheritance, Mrs. J’s resources were $6,000. Mr. J intends to transfer $4,000 to Mrs. J since her resources are under the $32,532 minimum. He signs a statement to this effect. Mr. J’s remaining resources are $1,000 ($5,000 - $4,000 = $1,000). He is below resource limits for Medicaid and continues to be eligible. When the member intends to transfer the resource, monitor the progress of the transfer. The transfer must take place within 90 days. The member must provide verification of the transfer. Send a notice similar to the following:

Medicaid has been approved effective ______________, since your intent is to transfer resources to your spouse within 90 days of the date of this eligibility determination. Failure to transfer the resource within 90 days will result in cancellation of Medicaid benefits unless unusual circumstances exist. Please notify this office when the resource is transferred and provide proof that the resource was transferred. 8-D, Transfers to Establish Ongoing Eligibility. Contact the member or authorized representative within 45 days of the notice to check the status of the transfer. Contact the member at the end of 90 days to see if the resources were transferred. If the institutionalized spouse is not able to transfer excess resources because of circumstances beyond the member’s control, you can allow another 90 days. If, at the end of this extended 90-day period, the resources have not been transferred, cancel the case.