Medicaid Policy
Medicaid Policy
Contact DHHS Policy Specialist for Previous Policy (371-7 was renumbered to 575-7 as of November 1, 2017)
If the individual intended to get fair market value but did not, the individual must explain in writing the reason for the transfer, the attempts to receive fair market value for the asset, and the reason for receiving less than fair market value. The individual must provide supporting documentation. Do not restrict Medicaid services when you determine the individual intended to get fair market value and circumstances beyond the individual's control prevented him or her from getting fair market value.
When assets are sold to a family member for less than fair market value, a penalty period based on the uncompensated value will apply unless the individual can document the attempts he made to sell the resource for fair market value and why that was not successful.