Maryland Updates Medicaid Transfer Penalty Rules

If one applies for Medicaid to pay for long term care in a nursing home, the state will look to see if the applicant made any gifts in the five years preceding the Medicaid application.  If so, then (with some exceptions that I will address in a later article) a period of Medicaid ineligibility will be imposed.

For many years, the period of ineligibility was determined by dividing the amount of the gift by $6,800, which amount was supposed to be the average monthly cost of care in a nursing home.  That divisor has been updated.

Effective this date, July 1, 2014, the divisor to determine the number of months of Medicaid ineligibility for gift transfers is $7,940. UPDATE: This divisor was again updated effective July 1, 2016.

The Maryland Medicaid authorities publish this information as Schedule MA-6, a copy of which you may download to your computer by clicking here:  Schedule MA-6 Average Nursing Home Costs

We at the Gatesman Law Office endeavor to stay at the cutting edge of new developments in Medicaid law and policy.

Should you have any questions as to how this new policy might affect you or a loved one, please contact us by clicking the Contact link on this website.

Bill Gatesman