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How To Qualify For Medicaid (Transfer Of Income And/Or Assets)

The Medicaid Penalty For Transfers Made Before February 8, 2006

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If you transferred assets for less than fair market value before February 8, 2006, you will be penalized for the period of time equal to the amount of time in a nursing home that what you gave away would have paid. The penalty starts on the first of the month after the transfer.

For example, you gave $ 50,000 to your son January 1, 2006, and want to check into a nursing home next week. In the state in which you live, Medicaid says a nursing home costs $5,000 a month. That means you are penalized and Medicaid will not pay for a nursing home for 10 months ($50,000 divided by $5,000 a month = 10 months. Since 10 months already passed since you made the transfer, the penalty period is over. You can check into the nursing home.

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