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West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 50 Chapter 24 Long Term Care

transfer penalty period to be nine months, running March through November. In June, Ms. Daisy’s son returns all the transferred assets. After appropriately verifying the returned assets, the transfer penalty is removed. However, the returned funds must be counted in determining eligibility retroactively back to March. These funds put Ms. Daisy over the asset limit from March through June, when they were returned. In June, Ms. Daisy uses the returned money to pay her nursing home bill for services received in March through June. Ms. Daisy is now under the asset limit and is otherwise eligible as of July 1. She is eligible for LTC services as of July 1. The Worker must ensure Ms. Daisy receives the LTC benefit beginning July 1. Ms. Daisy’s contribution to cost of care must also be determined. Partial Return of Transferred Funds Example: Mr. Elm transferred $60,000 from his savings account to his son in February. The Worker calculates the transfer penalty period to be five months, running March through July with remainder penalty in the month of August. In June, Mr. Elm’s son returned only $30,000 of the transferred money. Since only part of the assets were returned, no adjustment to the penalty period is allowed. The partially returned funds are considered an available asset for Mr. Elm during the penalty period, and after advance notice, Mr. Elm’s coverage under other Medicaid groups is closed due to excess assets. However, since the transfer penalty has already started, the penalty continues to run from March through July with the remainder of the penalty in the month of August. Multiple Transfers with Partial Return Example: During the lookback period, Ms. Poppy transferred $20,000 from her savings account, a vehicle, a certificate of deposit, and some stocks to her daughter. The Worker calculates the penalty period by adding all the transfers together. The total transfer penalty period is nine full months, running January through September. In May, Ms. Poppy’s daughter returns the entire $20,000 she received from the savings account, but she does not return any other assets. Even though Ms. Poppy’s daughter returned one full asset, she did not return the full amount of assets used to calculate the applied transfer penalty. Therefore, no adjustment to the penalty is allowed. The partially returned funds are considered an available asset for Ms. Poppy during the penalty period, and after advance notice, Ms. Poppy’s coverage under other Medicaid groups is closed due to excess assets. However, since the transfer penalty has already started, the penalty continues to run from January through September. 24.8.2.B.5 Client Intended Fair Market Return or Other Valuable Consideration