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Division of Welfare and Supportive Services F-440.2 Medical Assistance Manual TRANSFER OF ASSETS 23 Oct 01 MTL 04/23 APPLICATION OF PENALTY FOR TRANFERS MADE

Asset transfers are also evaluated anytime after the individual begins receiving nursing facility or HCBW services. Apply the transfer of assets penalty to the first month administratively possible allowing for adverse.

“Rounding down” or “disregarding” any fractional period of ineligibility is prohibited; therefore, calculate the percentage to continue the penalty into the next month.

Example: An applicant/recipient is eligible to receive Medicaid coverage for long-term care effective July, 2013. This individual made a transfer for less than market value of $20,000 in May, 2013. The penalty is calculated by dividing the $20,000 by $7,139 (state’s average cost of care in 2013). The result is 2.80. The penalty would be imposed for July, 2013 through September, 2013, plus 25 days of October, 2013 (31 days times .80 equals 25 days.)

Any transfer of assets for less than market value must have a penalty imposed even if only for a “partial month.” To determine the penalty period, case managers will divide the monthly cost of care by the number of days in the month the penalty is to be imposed, to establish a daily rate of care. The amount of the transfer is then divided by the daily rate to determine the total days for a fractional penalty period.

Example: An applicant/recipient is eligible to receive Medicaid coverage for long-term care effective July, 2013. In May, 2013, the individual made a transfer for less than fair market value of $2,000. The month of July has 31 days with a daily rate of cost of care at $230.29. This results in a penalty of 9 (8.68) days for July, 2013.

If an individual or the individual’s spouse has made “multiple transfers” within the look- back period, regardless of whether the value exceeds the state’s average cost of care, combine the values for a cumulative total and impose a penalty as if it were one transfer.

The penalty period cannot begin until the expiration of any existing penalty period.

Once a penalty period is imposed, it cannot be interrupted or temporarily suspended regardless if the individual remains in or leaves long-term care.

F-440.3 Exceptions

The Transfer of Assets policies shall not apply:

a. To medical assistance provided for services furnished prior to February 8, 2006;

b. To assets disposed of on or before February 8, 2006;

c. To trusts established prior to February 8, 2006; or

d. To transactions involving a partial month, multiple transfers, a life estate, or promissory note, loan or mortgage prior to April 1, 2006.