Application of Other Medicaid Provisions 510-05-66-15

(Revised 7/1/09 ML #3183)

Eligibility for Medicaid is subject to all other eligibility provisions, such as the disqualifying transfer provision and home equity limitation. For instance, the individual can become Medicaid eligible while retaining the assets, but if the assets are given away without receiving adequate compensation, it may be considered a disqualifying transfer and the individual may be ineligible for coverage of long-term care costs.

Example: Mr. White had a Partnership Policy that paid $180,000 in benefits before it ended. He is still in the nursing home so applies for Medicaid to further assist with his expenses. He had farmland worth $120,000 and $62,000 in liquid assets, for total countable assets of $182,000. During the application process he transferred ownership of his farmland to his children without receiving adequate compensation. This was a disqualifying transfer that causes him to be ineligible for coverage of nursing care services. If he had not made the transfer, he would have been eligible for Medicaid as $180,000 was protected, and the remaining $2000 in countable assets was within the $3000 asset limit. His penalty period begins in the month of the transfer because he was otherwise eligible for Medicaid at that time.

With regard to annuities or special needs trusts, the requirement to name the Department as a primary beneficiary still applies.