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COMBINED MEDICAID 404-1 Asset Transfers

Supersedes: CMA 404-1 (June 16, 2022)

Reference: 42 U.S.C. §1396p (c)(1)(F) through (I) and 42 U.S.C. 1396p (e); ARM 37.82.101 and .417; P.L. 109-171; P.L. 109-432

Overview: ACA and ABD: Institutionalized or Home and Community Based Service/Waiver (HCBS/Waiver) Medicaid beneﬁts cannot be provided to otherwise eligible Medicaid clients if a disqualifying asset transfer has occurred. A disqualifying asset transfer occurs when: 1. Assets are transferred for less than FMV (Fair Market Value); 2. The transfer occurred during either the 60-month look-back period or after Medicaid eligibility is established, AND; 3. The transfer is not an exempt transfer as described later in this section.

In addition to selling and giving away property, disqualifying asset transfers may include, but are not limited to, actions such as: · Establishing a trust; · Forgiving a debt without obtaining fair market value; · Decreasing the extent of ownership interest in an asset; · Forfeiting or assigning the right to a stream of income; · Making an unsecured loan; or · Giving up or limiting their rights or access to or interest in an asset, or in some instances, purchasing an annuity.

LOOK-BACK PERIOD: The look-back period begins the date an institutionalized or HCBS/Waiver individual (married or single) requests Medicaid coverage. The look-back period is 60 months for all transfers, including trust payments to or for the beneﬁt of a person or entity other than the Medicaid client.

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Official source

COMBINED MEDICAID 404-1 Asset Transfers

Supersedes: CMA 404-1 (June 16, 2022)

Reference: 42 U.S.C. §1396p (c)(1)(F) through (I) and 42 U.S.C. 1396p (e); ARM 37.82.101 and .417; P.L. 109-171; P.L. 109-432

Overview: ACA and ABD: Institutionalized or Home and Community Based Service/Waiver (HCBS/Waiver) Medicaid beneﬁts cannot be provided to otherwise eligible Medicaid clients if a disqualifying asset transfer has occurred. A disqualifying asset transfer occurs when: 1. Assets are transferred for less than FMV (Fair Market Value); 2. The transfer occurred during either the 60-month look-back period or after Medicaid eligibility is established, AND; 3. The transfer is not an exempt transfer as described later in this section.

In addition to selling and giving away property, disqualifying asset transfers may include, but are not limited to, actions such as: · Establishing a trust; · Forgiving a debt without obtaining fair market value; · Decreasing the extent of ownership interest in an asset; · Forfeiting or assigning the right to a stream of income; · Making an unsecured loan; or · Giving up or limiting their rights or access to or interest in an asset, or in some instances, purchasing an annuity.

LOOK-BACK PERIOD: The look-back period begins the date an institutionalized or HCBS/Waiver individual (married or single) requests Medicaid coverage. The look-back period is 60 months for all transfers, including trust payments to or for the beneﬁt of a person or entity other than the Medicaid client.