Transfer Penalty

Medicaid: No transfer penalty where transfer reimbursed third party for advancing expenses

No Penalty Where Transfer Reimbursed Third Party for Paying Applicant’s Expenses. Petitioner was admitted to a nursing home on May 7, 2008 and remained there until her death on July 24, 2008. Petitioner filed an application for Medicaid on July 3, 2008, seeking retroactive coverage. The application was denied after DFCS discovered a $22,668.56 transfer on June 19, 2008, as well as another transfer of $4,500. However, the evidence at the fair hearing showed the recipient had spent more than forty thousand of her own funds paying for Petitioner’s care. The ALJ found there was no transfer for less than fair market value and reverse the decision. Even if the transfer was deemed “a transfer to a relative or others for care provided for free in the past” under Section 2342 and, therefore, without consideration, the evidence proved that reimbursement of payments made to third parties was for compensation. Further, O.C.G.A. § 11-3-303(a) provides that transfer of an interest (e.g., bank draft) may be for value if transferred as payment of, or as security for, an antecedent claim. Under O.C.G.A. § 11-3-303 (b), such a transfer is for consideration. Thus, Petitioner rebutted the presumption that the transfers were for less than fair market value. (Homel v. Department).

OSAH-Richmond-Woodard-11-2008.pdf (November 7, 2008).

Published by
David McGuffey

Recent Posts

Medicaid Estate Recovery – 50 States

The Estate Recovery Rules vary from State to State. The federal minimum requires states to…

4 days ago

Rights of the ward; impact on voting and testamentary capacity; O.C.G.A. § 29-4-20

Georgia Guardianship law presupposes that the guardian must act in the best interests of the…

2 weeks ago

Georgia Medicaid Applicants No Longer Required to Apply for Other Benefits

Medicaid is the payer of last resort so applicants have, historically, been required to apply…

2 weeks ago

2026 Community Spouse Income and Resource Allowances

Effective January 1, 2026, the Community Spouse Resource Allowance will increase to $162,660.00. The combined…

2 weeks ago

Temporary medical consent guardianship; O.C.G.A. § 29-4-18

In some cases, no one can be found who will consent to medical procedures for…

2 weeks ago

Conduct of emergency guardianship hearing; limitations on emergency guardianship; O.C.G.A. § 29-4-16

If an emergency guardianship is warranted, O.C.G.A. § 29-4-16 sets the requirements for how the…

2 weeks ago