5725 Hardship

A transfer of property penalty period may be waived if denial of LTC medical assistance creates an undue hardship on the individual. Undue hardship is only applicable to financially and medically needy individuals with no possible means of recovering the transferred property. Both financial and basic needs (including medical) must be demonstrated in each hardship claim. Undue hardship exists only if the individual can demonstrate actual, not merely probable hardship.

Undue hardship does not exist when application of the transfer penalty causes the individual inconvenience or might restrict his or her lifestyle. It must put the individual in serious risk of deprivation. Undue hardship does not exist when the community spouse refuses to make property available.

Undue hardship exists in instances where an individual who would otherwise be eligible for medical assistance has demonstrated financial hardship through a suitable recovery effort and application of the transfer penalty period would deprive the individual of:

medical care such that the individual's health or life would be endangered; or

food, clothing, shelter, or other necessities of life.