All Medicaid Programs |
Obsolete Policy |
Contact DWS Program Specialist for previous policy
A transfer of assets is when the client or the client’s spouse gives away assets or income for less than fair market value during the look-back period.
The look back period is based on the date of application and goes back 60 months from the date of application.
Apply a penalty period if the client or spouse transferred assets or income for less than fair market value in the 60 months before the date of application. Medicaid will not pay for long-term care services during the penalty period. Long-term care services are nursing home services, including room and board, and long-term care services provided under a home and community based waiver. The penalty only applies to the time a person is in a nursing home or receiving waiver services. The penalty does not apply to the time someone is in the hospital prior to going into the nursing home.
Penalties for transferring assets do not apply to New Choices Waiver Community Group or New Choices Waiver Spenddown Group. Only New Choices Waiver Special Income Group is subject to transfer penalties.
Clients can also face a penalty period based on transfers made by a spouse after eligibility has been established for the institutionalized or waiver-eligible spouse. See Sec. 371-1, #3.
When the client or spouse give money to someone and claims it is payment for services the person provided in the past, we consider the payment a transfer. Unless the client verifies that a signed written contract, describing what services the person will do, what the client will pay for the services, and when and how such payments will be made, was in place before the services were provided, these payments will be treated as a transfer for less than fair market value. Treat prepayment of services in excess of one month's worth of services, even under a contract, as a transfer of assets.