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Division of Welfare and Supportive Services F-440.1 Medical Assistance Manual TRANSFER OF ASSETS 23 Oct 01 MTL 04/23 APPLICATION OF PENALTIES FOR TRANFERS MADE F-440 PENALTY PERIOD

F-440.1 Application of Penalties for Transfers Made Prior to February 8, 2006

The penalty begins the first day of the month in which the asset was transferred, provided that date does not occur during an existing penalty period.

For HCBW applicants/recipients:

a. The length of the penalty period is based solely on the value of the assets transferred and the average cost of private nursing care.

b. The length of the penalty period is calculated by dividing the value of the transferred asset (at the time of transfer) by the average cost of care (at the time of application).

For institutional applicants/recipients:

a. The length of the penalty period is based solely on the value of the assets transferred and the average cost of private nursing care.

b. The length of the penalty period is calculated by dividing the value of the transferred asset (at the time of transfer) by the average cost of care (at the time of application).

A new penalty period cannot begin until an existing penalty period has expired.

A penalty period runs continuously regardless of whether the individual remains eligible for HCBW services or if the institutionalized individual remains in or leaves the institution.

The penalty period can be shortened if:

a. Verification is received the asset has been returned to the customer.

b. The applicant/recipient receives additional compensation for the transferred asset. Verification of the additional compensation must be obtained by the case manager. The uncompensated value will be reduced by the amount of the additional compensation paid.

If the uncompensated value is reduced to a point that when dividing the remaining amount by the average cost of private nursing care only a partial month remains, the case may be eligible beginning with that partial month if all other eligibility criteria is met.

A penalty is not imposed when one amount or many amounts of transfer(s) in one month is less than the monthly cost of the nursing facility care.

A penalty is not imposed when a series of transfers, each less than the private nursing facility rate for a month, is made by an individual.