Medicaid Policy                                                                 

512-4 Undue Hardship

Effective Date: April 1, 2004

No Previous Policy

 

Exclude the assets of a trust when there would be undue hardship on the individual if the trust assets were counted. See the rules in section 575-9 to decide if undue hardship exists.

 

An undue hardship exists when:

1. The individual has exhausted all reasonable legal means to access or regain possession of the transferred asset, or has demonstrated that efforts to access or regain possession of the assets would probably not succeed and

2. The individual meets the following conditions:

   1. A medical doctor certifies that the individual is at risk of death or permanent disability without Medicaid; and

   2. The individual and the individual’s spouse or parent of a minor child cannot afford to meet the cost of the individual’s medical care at home.

Compare the income of people who are legally obligated to support the individual to the cost of:

• medical care not covered by insurance or Medicaid,

• diapers

• special foods

• normal living costs

• spenddown