Medicaid: Transfer Penalty Reversed Where Services Provided Under Agreement

Transfer Penalty Reversed Where Care Services Were Provided Under Agreement. Petitioner was discharged from a nursing home to home in 2004, where she remained until she returned in 2008. At the time of discharge she agreed to transfer her property valued at $262,970 on the 2006 assessment (when the transfer occurred) if her son provided care allowing her to remain at home. By 2008 when the nursing home application was filed, the value of the property had declined to $229,160. Petitioner’s son and his wife provided care for 45 months or 3 years and 275 days. Whether valuing their services using the $132 daily private pay rate or minimum wage, the value of their services ranged between $180,840 and $183,522. When combined with a property son transferred to Petitioner which was valued at $55,560, the transfer was for fair market value. The ALJ also noted that “the indeterminate amount of potential care services contemplated in the parties Agreement constitute a value in excess of the sums so calculated. Fair Market Value is determined based on the value of the transferred property at the time of the transfer; however, the value of the services provided by Petitioner’s son was not yet complete at the time of the transfer.” The Petitioner successfully rebutted the presumption that property was transferred to qualify for Medicaid and the penalty was reversed.

OSAH-Unknown-Teate-5-2008.pdf (May 28, 2008).