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• The penalty does not occur during any other transfer of property penalty. NOTE: Advance notice of an adverse action is applicable for individuals who have been determined eligible for Medicaid. IHCPPM 2232.00.00. Therefore, if the calculation of the penalty period based on the criteria previous stated in this section would have any portion of the penalty period cover month(s) where the individual was previously determined eligible for and received Medicaid long-term care services, a claim for benefit recovery must be initiated to recover the portion of the nursing home per diem paid for by Medicaid during the calculated penalty period the individual incorrectly received. Please, refer to IHCPPM Chapter 4600 for Benefit Recovery. The notice of the benefit recovery action serves as the notice for advanced notice of adverse action in this instance. If the individual residing in a long-term care facility is a new applicant whose eligibility requires a transfer penalty period, the begin date will most often be the first month the person is otherwise eligible. Example: • 10/15 Individual entered LTC facility • 12/05 Gifted Money • 05/10 Apply for Medicaid The months covered by the application are February, March April and continuing. During the eligibility process it is determined that the gifting was an improper transfer, and that the applicant had excess resources for the months of February and March. Therefore, Medicaid is effective 04/01 and a transfer penalty is imposed starting the same date, 04/01. Assume the penalty period is 5 full months. The penalty begins on 04/01 and ends on 08/31. Under the old rules, the transfer penalty would have begun on 01/01, the month after the month of transfer and ended on 05/31. 2640.10.35.05 CALCULATION OF THE PENALTY PERIOD All improper transfers occurring on and after 11-01-09 are accumulated into one total amount to determine the penalty period. The facility rate as of the date of application, not the date of transfer, is used in the calculation. Refer to IPPM 3006.00. The uncompensated value determination must take into consideration the de minimis transfer allowance as explained in IPPM 2640.10.15.10. Transfer penalties using the specific method explained below may end on any date in a month not just the last day of a month. Two standard values are used in the penalty period calculation: • Monthly Standard of days in a month - 30.42 days. (365 days divided by 12) • Average Monthly Facility Private Rate - Refer to IPPM 3006.00 for the applicable rate to use