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2640.00.00 TRANSFERS OF PROPERTY The transfers of certain real or personal property to another individual must be considered in relation to the law and/or regulations in effect on the date that the transfer occurred. The specific policy for transfers of property varies by program and is explained in Sections 2640.10.00 through 2640.10.35.05. The Resource Questions screen contains the transfer of property question. When the answer is "yes", the Resource Transfer screen must be completed with the transfer information. 2640.10.00 TRANSFER OF PROPERTY LAW The Medicaid eligibility of an individual who transfers property on or after August 11, 1993, is governed by federal law. Section 1917(c) of the Social Security Act (42 U.S.C. 1396 p-C), as amended by OBRA-93 requires a penalty period of reduced Medicaid coverage for persons found to have made a property transfer for less than fair market value and for the purpose of becoming eligible for Medicaid. The following sections explain the procedures for consideration of transfers of property occurring on or after August 11, 1993. State regulations, as amended, at 405 IAC 2-3-1.1 and 405 IAC 2-3-1.2 are applicable to certain transfers effective June 1, 2002, regarding annuities, income transfers, and failure to take action to receive assets. Additional provisions are effective July 1, 2003, regarding the start of a transfer penalty, penalty periods for successive transfers, and transfers of income producing real property. 2640.10.05 GENERAL APPLICABILITY OF TRANSFER OF PROPERTY LAW The transfer of property provision is applicable to applicants/recipients who are: • Inpatients of nursing facilities or other medical institutions in which they are receiving equivalent nursing facility services, or • PACE participants, or • Receiving Home and Community-Based Services (HCBS). If an applicant/recipient does not meet one of the above conditions a transfer penalty is not invoked. If such an individual has transferred property, the worker is to record the occurrence but will not require verifications nor attempt to determine whether the transfer was violative. However, if the individual later enters a nursing facility or begins receiving HCBS, the worker would then be required to determine whether the transfer was violative. When a spouse transfers an asset that results in a penalty for the client, the penalty period must be apportioned between the spouses. Both spouses must be eligible for Medicaid Institutional service or home/community-based waiver services during the same time for apportionment to occur. When one spouse is no longer subject to a penalty (for example, the spouse no longer receives institutional or