Medicaid: No Penalty for Transfer to Disabled Child

No Penalty For Transfer to Disabled Child. DFCS imposed a transfer of resources penalty where Petitioner transferred cash assets to a disabled daughter. DFCS’s reasoning was that cash assets were transferred to the disabled child outright as opposed to transferring them to a trust for her sole benefit. Citing 42 U.S.C. § 1396p(c)(2)(B)(iii) and Section 2342 of the ABD Manual, the ALJ reversed imposition of the transfer penalty. Federal law permits transfers to, or to a trust” for the benefit of a disabled child.

OSAH-Unknown-Langston-12-2008.pdf (December 19, 2008).