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Medicaid Program - Transfer of Assets Penalty - South Carolina

Medicaid payments for institutional services or Home and Community-Based Services is denied for individuals who dispose of assets for less than the fair market value within 36/60 months of requesting Medicaid sponsorship of such services. The penalty also applies if the spouse of an institutionalized individual transferred assets.

The look-back period is 36 months. The look-back period is 60 months if the asset was transferred through a trust. The look-back period begins from the date the individual is both in the nursing facility (or receiving Home and Community-Based Services) and s/he applies for Medicaid sponsorship in the cost of nursing facility care.

There is no maximum penalty period. The penalty period is the number of months it takes to reduce the uncompensated value of the transferred asset(s) to $0. The penalty period usually begins the first day of the month in which assets were transferred.

No penalty is imposed for the transfer of a home to a spouse, child under age 21 or a blind or disabled child, sibling with equity interest in the home and who lived in the home at least one (1) year before the individual’s admission to the institution, or a child who lived in the parent(s) home for at least two (2) years before the parent was admitted to the institution and who provided care for the parent which delayed institutionalization.

No penalty is imposed if the assets were transferred to a community spouse or blind or disabled child or if the individual can show that he intended to dispose of assets at fair market value or for other consideration. This would be an individual who inadvertently did not receive adequate compensation or an individual who transferred assets to another individual in return for care which delayed institutionalization.

No penalty is imposed if the individual can show that assets were transferred for some reason other than to qualify for Medicaid. For example, an individual may have been elderly or had a disabling condition at the time of transfer, but did not need nursing home care. Subsequent to the transfer, the individual’s condition deteriorated so that nursing home care became necessary. This individual would not be penalized for a transfer that occurred prior to the time his health deteriorated.

No penalty is imposed if the imposition of the penalty would work an undue hardship. An undue hardship is defined as discharge by the medical facility or denial of Home and Community-based Services that would result in the individual being placed in a life-threatening situation.

Also see:

Medicaid Program - Financial Eligibility

Medicaid Program - Non-Financial Eligibility

Medicaid Program - Services

Medicaid Program - Overview

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