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F-440.1 Division of Welfare and Supportive Services TRANSFER OF ASSETS Medical Assistance Manual APPLICATION OF PENALTIES FOR TRANFERS MADE 23 Oct 01 MTL 04/23 When a single asset is transferred or a number of assets are transferred during the same month, the penalty period is calculated using the total value of the asset(s) divided by the average monthly cost of nursing facility care.

When multiple transfers in separate months occur, use the following methods for calculating the penalty periods.

a. Penalty Periods Overlap – calculate the individual penalty periods and impose them sequentially.

Example: An individual transfers $20,000 in January, $20,000 in February and $20,000 in March, all of which are uncompensated. Calculate the individual penalty periods and impose them sequentially: $20,000/$4,583 (2004) equals a 4-month penalty. The penalty for the first transfer extends from January through April, the second extends May through August, and the third extends from September through December.

b. Penalty Periods Do not Overlap – when multiple transfers in multiple months occur where the penalty periods for each do not overlap, treat each transfer as a separate event with its own penalty period.

Example: An individual transfers $12,000 in January, $12,000 in May and $12,000 in October, all of which are uncompensated.

Using the current nursing facility cost of $4,583, calculate each transfer $10,000/$4,583 (2004) to determine each penalty period. In this example, the penalty periods for transfers are a 2-month period, respectively, the months of January through February, the months of May through June, and the months of October through November.

F-440.2 Application of Penalties for Transfers Made On or After February 8, 2006

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).

The period of ineligibility will not always be the first day of the month following the month in which the transfer occurred but:

a. The first day of the month following the month which assets have been transferred for less than fair market value; or

b. The date the individual would otherwise be eligible for HCBW or LTC services whichever is later.