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• Medicaid Purchase Plan (MAPP) members. • BadgerCare Plus for institutionalized childless adults. Example 2: Henry is enrolled in MAPP and moves into a skilled nursing facility. He is over the asset limit for institutional Medicaid, so he remains enrolled in MAPP, which covers his long-term care services in the nursing home. Henry sells his home and gives the money to his daughter. Even though Henry is not enrolled in institutional Medicaid, divestment rules apply to his gift because Medicaid is paying for his long-term care services.

Example 3: Keisha is enrolled in BadgerCare Plus. She has complications from surgery that impact her motor functions. Keisha enrolls in the Family Care program to get extra services to remain in her home. Keisha’s income and asset transfers are now subject to divestment rules. 17.1.2 Excluded Applicants and Members Divestment rules do not apply to transfers made by or on behalf of: • Children under 19 years old. • Children under 22 years old who are enrolled in the Children’s Long-term Support (CLTS) waiver program. • A person of any age receiving residential substance use disorder (SUD) treatment in any setting, if the person is only there to receive residential SUD treatment. Example 4: Cedric is 22 years old, has a disability determination, and is institutionalized. He applies for institutional Medicaid and reports on his application that he gifted money to his brother. The IM agency requests more information and discovers Cedric was 17 when he gave away the money. Due to his age at the time he gave the money away, this is not a divestment. This page last updated in Release Number: 21-02 Release Date: 08/30/2021 Effective Date: 08/30/2021 17.2 Evaluation of Transfers for Divestment IM agencies evaluate information provided about a transfer to determine if it is a divestment. If a divestment occurs, the agency determines if it is allowed or if it requires a penalty period. Note: Divestment rules do not apply to the applicants or members listed in SECTION 17.1.2 EXCLUDED APPLICANTS AND MEMBERS. The evaluation of a transfer for divestment includes: • 17.2.1 EXEMPTION OR DISREGARDED STATUS OF INCOME AND ASSETS • 17.2.2 DATE OF TRANSFER • 17.2.3 TRANSFERS THAT ARE NOT DIVESTMENT • 17.2.4 DETERMINING FAIR MARKET VALUE • 17.2.6 ALLOWED DIVESTMENTS • 17.2.7 DIVESTMENTS THAT ARE NOT ALLOWED THAT RESULT IN A PENALTY PERIOD 17.2.1 Exemption or Disregarded Status of Income and Assets Transfers of exempt income and assets do not count as divestments. For the purposes of divestment, exempt and disregarded have the same meaning. This chapter uses the word exempt.