Purpose: This section will assist in determining resource transfer penalties.

Current Policy Effective Date: September 1,2018

Date Last Reviewed: April 8, 2026

Previous Policy: August 27, 2018

POL M804: DETERMINING RESOURCE TRANSFER PENALTIES

1. Penalties Apply To Non-Exempt Resource Transfers

Penalties for transferring a resource must be applied when applicants or clients cannot provide proof the transfer occurred for reasons other than gaining or maintaining eligibility. The transfer amount must also meet or exceed the average daily rate for Nursing Homes in order to be assessed due to the penalty calculation.

2. Determining Uncompensated Value Of Transfers

The uncompensated value of a transfer is calculated by using 80% of the current market value of the transferred resource and deducting all of the following that apply:

Amount of the lien(s). Unpaid principal of the mortgage or loan existing against the resource. Any compensation received.

Example 1: Current market value - $100,000 x 80% = 80,000 - $40,000 (Mortgage) - $40,000 (Compensation received) = $0 (no transfer penalty)

Example 2: Current market value - $80,000 x 80% = 64,000 - $40,000 (Mortgage) = $24,000 (amount of transfer penalty). See Table 9 on how to calculate the penalty period.

The uncompensated value of jointly owned resources is calculated by using 80% of the current market value of the applicant or client's interest in the transferred resource, and deducting any compensation received for the resource.

3. Calculating Transfer Penalties

The uncompensated transfer value of the resource should be divided by the average private pay rate, refer to Table 1A .

Penalties must be figured on all days affected by the transfer. Reference Table 9 to determine the look back and penalty period.

4. Transfer Penalty Must Be Split Between Spouses

The transfer period must be split between two spouses if:

An institutionalized spouse has a transfer penalty due to a transfer made by the community spouse. AND The community spouse later becomes institutionalized.

The remainder of the penalty period must be assigned to the surviving institutionalized spouse if one spouse dies.

5. Transfer Penalty Waived For Undue Hardship

The transfer penalty must be waived if imposing the penalty would result in undue hardship, as determined by the Wyoming Department of Health (WDH).