Medicaid Penalty Period

Penalty Period

Will I incur a penalty?
When you apply for Medicaid nursing home benefits, the local agency will analyze all financial transactions made by you and/or your spouse during a specified "look-back" period. The look-back period is 60 months for outright transfers and 60 months for transfers to certain trusts. Thus, if either you, or if you are married, your spouse, transfer assets for less than fair market value within the applicable look-back period, a penalty period, during which you will be ineligible to receive Medicaid benefits, will be imposed upon such transfers. The greater the uncompensated value of assets you transfer, the longer the penalty period imposed. In calculating the penalty period, you must take into account the uncompensated value of the asset transferred, the cost of nursing home care, and income you are receiving from other sources, among other items. We can advise you regarding the proper amount that can be transferred under applicable Medicaid regulations.

Note that the 60 month look-back period does not apply to non nursing-home Medicaid services, such as home care. Contact Mark G. Aberasturi, Attorney at Law PC to learn more.