Part of the legislation, the spousal impoverishment provisions, remain in effect and offset the economic hardships that many elderly couples face when one member requires nursing home care. Asset Transfer Restrictions Medicaid rules restrict asset transfers. Assets above allowable Medicaid limits that are transferred for less than their market value during a specified look-back period will result in a period of Medicaid ineligibility called a penalty period. The look-back period is 36 months prior to either the date of application for benefits or the date of entering the nursing home, whichever is later. A transfer within that 36 months will trigger the penalty period.
Current law provides exceptions for certain asset transfers.
For example, certain transfers to the applicant's spouse, or blind or disabled child, may be exempt and will not result in a penalty period. By federal law, criminal penalties can be levied against anyone who, for a fee, knowingly and willfully counsels or assists, an individual to dispose of assets in order for the individual to become eligible for Medicaid assistance, if disposing of the assets results in the imposition of a period of ineligibility for Medicaid. Recovery Laws Federal estate recovery laws require states to recover the costs of Medicaid benefits from the estates of a deceased Medicaid recipients. Recovery of such costs from the recipient's estate applies to individuals who were 55 years old or more when they received Medicaid and who received nursing home care, home and community-based care, and related hospital and prescription drug services. For estate recovery purposes, the estate includes all of the individual's probate estate.