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1. Before February 8, 2006 – For persons who applied for or began receiving Medicaid LTSS before this date, the look-back period extends back in time from the date of initial application for thirty-six (36) months. The penalty period begins on either the date of the disqualifying transfer or the first (1st) day of the month the person applied for Medicaid LTSS, whichever occurs later, and runs continuously even if long-term care services cease on an interim or permanent basis. 2. On or after February 8, 2006 – For persons who apply for and begin receiving Medicaid LTSS on or after this date, the penalty period begins on the date the State determines a person to be “otherwise eligible” for Medicaid or the date of the disqualifying transfer, whichever occurs later. “Otherwise eligible” means that Medicaid LTSS is being denied during a penalty period as a direct result of a disqualifying transfer. An applicant who does not meet any of the other requirements (general, financial, functional/clinical, etc.) for Medicaid LTSS eligibility must be denied on that basis and, therefore, is not considered otherwise eligible. a. Requirements. To be determined otherwise eligible, the applicant/beneficiary must be receiving LTSS in a health institution, or at least one (1) Medicaid LTSS covered service at home or in a community-based setting monthly, such as assisted living; and have applied for Medicaid LTSS and met all other eligibility requirements for Medicaid LTSS identified in Part 1 of this Subchapter, including having income within the allowable limits for Medicaid LTSS set forth in § 6.4(C) of this Part and resources at or below the four thousand dollar ($4,000.00) limit. b. Otherwise eligible date. The date a person is determined otherwise eligible is the effective date of the State’s denial of Medicaid LTSS eligibility. The date the denial takes effect is generally the first (1st) day of the month the application was filed. c. Benefits. During a penalty period, a person who has been determined otherwise eligible will not receive LTSS benefits. During this period, they may receive non-LTSS Medicaid benefits. d. Limits. To maintain non-LTSS Medicaid coverage during a penalty period, a beneficiary must meet the income and resource limits for the applicable eligibility category as of the first moment of the month and report any changes in financial or clinical/functional eligibility within ten (10) days from the date the change occurs. As the financial eligibility requirements and treatment of LTSS expenses during a penalty period vary across these coverage categories, eligibility for non-LTSS Medicaid coverage is not automatic and may not be advantageous if third-party health coverage is available.