415.22 Penalty Period for Transferring Assets - Medical Assistance (AAM)

415.22 Penalty Period for Transferring Assets - Medical Assistance (AAM)

SR 96-02 Dated 01/96 Previous Policy

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Penalties for transferring assets by an applicant or recipient of medical assistance-only apply to individuals requesting nursing facility or HCBC. There is no penalty for transferring assets for any other type of medical assistance .

If the individual fails to prove that assets were not transferred for the purposes of qualifying for medical assistance as an institutionalized individual, apply a penalty period. There is no limit on the length of the penalty period. During a penalty period, the institutionalized individual has restricted eligibility for medical assistance.

Restricted eligibility means the institutionalized individual is ineligible for institutionalized care, but may remain eligible for other medical services. Determine eligibility for restricted medical assistance as if the individual were living in independent living with income compared to the one person Medically Needy MA income limit See Part 601 , Income Limits.

Exception : If undue hardship exists there is no penalty.