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Medicaid-eligible. Whether returned in full or in-part, the returned asset/value is included in the resource determination when Medicaid eligibility is re-evaluated. Because a penalty period cannot begin until a person is otherwise eligible for Medicaid, the person likely is not Medicaid eligible with the returned assets; therefore, any penalty will start later, after the returned assets are spent down and the person establishes Medicaid resource eligibility.

ASSETS/VALUE RETURNED AFTER DENIAL/CLOSURE: If returned after denial/closure has already taken effect, a new application is required; retroactive eligibility can be evaluated.

BUSINESS PROCESS: Asset Transfer-Undue Hardship Exception Process

Effective Date: 07/01/2025