Medicaid - How Do Transfers Of Resources Affect My Eligibility?

Legal Services of North Dakota
Medicaid - How Do Transfers
of Resources Affect My Eligibility?

How Does A Transfer Of Property Affect Medicaid Eligibility?

Any property transferred by you or your spouse for less than fair market value could make you ineligible for receiving institutional services including nursing services or nursing facility type services in any facility or home and community based waver services.

What is a Disqualifying Transfer?

Any property transferred (sold, convey, traded, given away) by you or your spuose for less than fair market value.

What Resources Can Be Transferred Without A Penalty?

You can transfer any asset to your spouse, minor, blind or disabled child.
You can transfer any asset for a reason other than to qualify for Medicaid.
You can transfer any asset for fair market value.

Can A Home Ever Be Transferred?

Yes, You can transfer your home to:

a spouse,
a minor, blind or disabled child
a sibling who has an equity interest and who lived in the home one year immediately before you became institutionalized
an adult child who lived in the home for two years immediately before you became institutionalized and who provided care which permitted you to live at home.

What is the Penalty?

You are not eligible for payment of institutionalized services.
You are still eligible for other services paid by the program.

How Far Back Does The County Look For Disqualifying Transfers?

The federal law has changed the look back period to 60 months. The State of North Dakota has not yet promulgated regulations adopting the federal changes
If you are receiving Medicaid and you go into a nursing home 36 months prior to your admission to the nursing home.

Otherwise, 36 months prior to an application for Medicaid; 60 months if the transfer involves a trust.

How Is The Penalty Period Determined?

Establish the amount of property that was transferred for less than fair market value.
Example: You gave away a CD valued at $50,370 to your only grandson. Since you received nothing in value from your grandson, the total amount of the CD is a transfer for less than fair market value, $50,370.
Divide the average cost of nursing home care into the transfer for less than fair market value. The average cost of nursing home changes each year. For 2008 the average cost per month equals $5,037. Per day it equals $165.59.
$50,370 divided by $5,037 = 10 (months)

The penalty period in the example given equals 10 months. The penalty begins on the date of the transfer. There is no limit on the number of months the penalty period can last.

What Is The Penalty?

You are not eligible for Medicaid for institutionalized services.
You are still eligible for other services paid by Medicaid.

DISCLAIMER: This information is not legal advice. If you have a legal problem, you should talk to a lawyer and ask for advice about your options.