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See Process Help, Section 11.6.6 Changing Divestment Periods after Confirmation for information about changing divestment penalty periods. 17.3.8 Both Spouses Institutionalized If the community spouse makes a divestment resulting in a penalty period for the institutionalized person (17.2.7.7 COMMUNITY SPOUSE DIVESTMENT THAT IMPACTS THE INSTITUTIONALIZED PERSON), split the remaining penalty period between the spouses at the time the community spouse enters an institution, applies for Medicaid, and is found otherwise eligible. Example 13: Joe is in a nursing home. Joe's wife, Mildred, is his community spouse. Joe inherited $84,000 and immediately transferred it to Mildred. Mildred gave it to her church. This divestment resulted in a penalty period for Joe. Now Mildred is entering the nursing home and applying for Medicaid. The time that remains on Joe's penalty period must be divided between the spouses. The penalty period must be determined as follows: 1. Find the divested amount used to calculate the original penalty period. 2. Calculate how much of the divested amount remains to be satisfied by: a. Multiplying the average nursing home private pay rate used to calculate the original divestment penalty period times the number of days already served of the penalty period. b. Subtracting the result from the original divested amount. 3. Calculate the penalty period for the remaining divested amount by using the current average nursing home private pay rate. 4. Divide the new penalty period equally between the two spouses. Refer to Process Help, Section 11.6.6.5 Spousal Split. If either spouse leaves the institution or dies, add the remainder of his or her penalty period to the other spouse's penalty period. This page last updated in Release Number: 26-01 Release Date: 02/13/2026 Effective Date: 01/01/2026 17.4 Reserved This page last updated in Release Number: 21-02 Release Date: 08/30/2021 Effective Date: 08/30/2021 17.5 Reserved This page last updated in Release Number: 21-02 Release Date: 08/30/2021 Effective Date: 08/30/2021 17.6 Reserved This page last updated in Release Number: 21-02 Release Date: 08/30/2021 Effective Date: 08/30/2021