Medicaid: Transfer Penalty Affirmed

Penalty Affirmed After Life Estate Conveyed; Hardship Waiver Unavailable Because No Legal Action was Taken to Recover Property. Petitioner, a divorced individual, acquired a life estate in business property with his ex-wife owning the remainder interest. He entered a nursing home in March 2008 and his Medicaid application was denied after the caseworker valued his life estate at $34,721, resulting in him being over resourced. In April, Petitioner transferred his life estate to his ex-wife without consideration and reapplied for Medicaid. He was approved with a three month transfer penalty. On appeal, the transfer penalty was affirmed. An application for a hardship waiver was unavailable since, effective February 1, 2007, Section 2345 requires that a Petitioner take legal action in an attempt to recover property transferred within the look-back period before hardship can be considered. Petitioner also has the burden of proving his or her health and age did not indicate the need for long-term care services at the time of the transfer.

OSAH-Unknown-Teate-9-2008.pdf (September 24, 2008).