Elder Law

DHS properly imposed penalty periods of noneligibility due to certain nonallowable asset transfers made by applicants for Medicaid assistance. If a state accepts partial returns of transfers made by applicants, a state may prorate but not eliminate penalty. Applicants did not receive any value at time of transfers, but checks were written back to them by their children after gifts were made. DHS did not err in denying applicants credit for partial returns. DHS properly characterized applicants’ life insurance policy purchases, as nonexempt as no burial contracts existed and no showing was made they received fair market value for purchases. (KNECHT and STEIGMANN, concurring.)

DHS granted application for Medicaid assistance filed by resident of long-term health care facility, but imposed penalty periods of noneligibility, citing nonallowable asset transfers of four months after application, when applicant purchased life insurance policy, then created irrevocable trust funded by policy, and wrote $4000 check to applicant’s daughter, who was her POA. DHS properly used application date to calculate one-month penalty period for nonallowable $4000 transfer. DHS properly considered life insurance policy purchase nonallowable transfer, as at time trust was created, potential existed for full amount of policy to be diverted from paying funderal expenses. (KNECHT and STEIGMANN, concurring.)