An Act To Impose Penalties for Certain Transfers of Assets at Less Than Fair Market Value by Individuals Receiving Long-term Care Services
Maine Legislature, Session 125, LD 1394
Committee: Health and Human Services
Sponsors: STRANG BURGESS, ROSEN, EVES, FOSSEL, MALABY, O'CONNOR, PETERSON, SANDERSON, SIROCKI, BRANNIGAN
Amends: 22 MRSA §3174-Q

Legislative Document 
No. 1394 
H.P. 1023 
House of Representatives, April 4, 2011 
An Act To Impose Penalties for Certain Transfers of Assets at Less 
Than Fair Market Value by Individuals Receiving Long-term Care 
Services 
Reference to the Committee on Health and Human Services suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative STRANG BURGESS of Cumberland. 
Cosponsored by Senator ROSEN of Hancock and 
Representatives: EVES of North Berwick, FOSSEL of Alna, MALABY of Hancock, 
O'CONNOR of Berwick, PETERSON of Rumford, SANDERSON of Chelsea, SIROCKI of 
Scarborough, Senator: BRANNIGAN of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  22 MRSA §3174-QQ is enacted to read: 
§3174-QQ.  Penalties for certain transfers of assets at less than fair market value by 
individuals receiving long-term care services 
1.  Compliance with federal law and policy.  The department shall comply with the 
applicable provisions of federal law that require state Medicaid plans filed with the 
federal Centers for Medicare and Medicaid Services to impose an ineligibility penalty for 
certain transfers and disposals of assets at less than fair market value by individuals and 
spouses of individuals who are receiving long-term care services that are funded by the 
MaineCare program. The ineligibility penalty must conform to the requirements of 
federal law, the United States Social Security Act, 42 United States Code, Section 
1396p(c) and any applicable implementing regulations and guidance promulgated by the 
federal Centers for Medicare and Medicaid Services.  The department shall implement 
both the mandated and the optional provisions set forth in these federal laws and policies. 
2.  Long-term care services subject to ineligibility penalty.  The ineligibility 
penalty described in subsection 1 applies to individuals and their spouses who are seeking 
to qualify for institutional and noninstitutional long-term care services that are supported 
by state or federal MaineCare funding, including but not limited to the following types of 
long-term care services: 
A.  Nursing facility services; 
B.  Services at any other long-term care facility that officials at the federal Centers 
for Medicare and Medicaid Services consider equivalent to the services provided by a 
nursing facility; 
C.  Home-based or community-based services furnished under a federal Centers for 
Medicare and Medicaid Services-approved Medicare waiver; 
D.  Home health care services; 
E.  Home, community and personal care services; and 
F.  Any other long-term care services for which state or federal funding is provided, 
including but not limited to services provided to: 
(1)  Persons residing in cost reimbursement residential care facilities that receive 
payments under the department rules governing principles of reimbursement for 
residential care facilities; or 
(2)  Persons residing in facilities that receive payments under the department 
rules governing MaineCare benefits for private nonmedical institution services. 
3.  Lookback period.  In its review of disposals of assets at less than fair market 
value, the department shall apply a lookback period of 60 months for any transfers made 
on or after February 8, 2006 and a lookback period of 36 months for any transfers made 
prior to February 8, 2006. 
4.  Imposition of penalty period of ineligibility.  In determining the penalty period 
of ineligibility for receipt of MaineCare funding by individuals and their spouses who 
have made disposals of assets for less than fair market value during the applicable 
lookback period, the department shall make determinations in accordance with the 
applicable provisions of federal law and policy, taking into account the applicable dates 
of the disposal, the date the individual first received applicable services and the date the 
individual applied for MaineCare-funded benefits, as well as the total uncompensated 
cumulative value of the assets transferred and the average monthly cost of the long-term 
care services being provided under the MaineCare program.  The department shall follow 
applicable federal statutes and rules and federal Centers for Medicare and Medicaid 
Services guidance. 
Sec. 2.  Department to amend rules.  The Department of Health and Human 
Services shall amend its rules and policies to conform to the provisions of the Maine 
Revised Statutes, Title 22, section 3174-QQ as soon as practicable.  These rule changes 
must be adopted on an emergency basis pursuant to Title 5, section 8054, to be effective 
immediately upon adoption and an ongoing basis as routine technical rules pursuant to 
Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill requires the Department of Health and Human Services to impose an asset 
transfer penalty, with a lookback period of 60 months, on a person seeking to qualify for 
MaineCare funding and support of any long-term care services, and who has made a 
transfer or other disposal of assets at less than fair market value.