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West Virginia Income Maintenance Manual Chapter 24
West Virginia Income Maintenance Manual Page 67 Chapter 24 Long Term Care
▪ Transfers During a Penalty Period Examples Example 1: Mr. Oak transfers $70,000 and is serving a five-month penalty beginning October 2024 through February 2025 with a partial month’s penalty of $10,485 for March 2025. In November 2024, Mr. Oak receives an inheritance of $12,000 which he gives to a nephew. There is an assessed penalty of one whole month and a partial month’s penalty of $97. The new penalty begins April 2025. Example 2: Ms. Orchid, approved for and receiving institutional level of care services, receives an inheritance of $100,000 in 2024 and gives the money to her grandson. Advance notice of the transfer penalty is sent in November and the penalty period begins December 1, 2024. 24.8.2.J.2 Length of Penalty There is no maximum or minimum number of months a penalty may be applied. The penalty runs continuously from the first day of the penalty period, whether or not the client leaves the institution. A partial penalty or extra payment is only applied in the last/partial month of the penalty period. The penalty period lasts for the number of whole and/or partial months determined by the following calculation: • Total amount transferred during the look-back period divided by the State's average, monthly nursing facility private pay rate of $396.76 per day or $11,903 per month. • When the amount of the transfer is less than the average monthly private pay cost of nursing facility care, the agency imposes a penalty for less than a full month. The partial month’s penalty is converted to a dollar amount and added to the individual’s calculated contribution to his cost of nursing facility care for his first month of eligibility. The partial month’s penalty is determined as follows: Step 1: The total amount transferred is divided by the State’s average monthly nursing facility private pay rate of $11,903. Step 2: Multiple the number of whole months from Step 1 by the average private pay rate of $11,903. Step 3: Subtract the amount in Step 2 from the total amount of all transfers. The remainder is the amount which is added to the individual’s calculated contribution.