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F-440.4 Division of Welfare and Supportive Services TRANSFER OF ASSETS Medical Assistance Manual PENALTY PERIOD – SPOUSE INVOLVEMENT 23 Oct 01 MTL 04/23

F-440.4 Penalty Period - Spouse Involvement

When a spouse transfers an asset resulting in a penalty period for the customer, in the following circumstances the penalty period must be apportioned between spouses:

a. The spouse is eligible for Medicaid as an institutionalized individual; and

b. Some portion of the penalty against the customer remains at the time the above condition is met.

The remaining penalty period existing for the customer will be divided in one-half and that one-half period of time will apply to the customer and the spouse.

If for some reason one spouse is no longer subject to a penalty, the remaining penalty period applicable to both spouses must be served by the remaining spouse.

F-440.5 Situations Under Which Transfer of Asset provisions DO NOT Apply (not all inclusive)

a. Assets which are excluded at the time of the transfer. Exception: The home of an institutionalized applicant/recipient (principal place of residence) can only be transferred in the specific instances outlined in section (e) below.

b. When the customer’s name is removed from a joint bank account in accordance with joint banking policy.

c. Assets which have been divided equally, or by the legal portions owned, between legal owners.

d. When the customer provides verification they made a purchase(s) for themselves. If someone else made the purchase(s) for the customer, the Chief of Eligibility and Payments must make the final decision in accordance with the transfer procedures.

e. When the customer’s home is transferred to: