Release 15-01

17.1 Divestment Introduction

Divestment can affect the eligibility for Long Term Care Medicaid. If it is determined that divestment occurred some time in the past, the applicant or member may be found ineligible for Long Term Care Medicaid for a period of time. Divestment does not affect eligibility for Medicaid card services for a person residing in a medical institution. An individual ineligible for Home and Community-Based Waivers due to a divestment may still be eligible for other non-Long Term Care Medicaid.

Example 1: Joe applied for HCBW and was found ineligible for HCBW for nine months due to a divestment. Joe can still be eligible for SSI -Related Medicaid or MAPP while he serves his divestment penalty, if otherwise eligible for those programs.

Example 2: Martha is residing in a nursing home and applies for Institutional Medicaid. Martha is ineligible for Institutional Medicaid for five months due to a divestment. During the penalty period, she is eligible for Medicaid card services.

Note: Effective 10/1/09, assets are no longer counted for disabled or institutionalized children. Since assets are disregarded, there can be no divestment in a Medicaid case for a child.

The definitions and general rules found in Sections 17.2 - 17.5 apply to all divestments. The special situations in Sections 17.6 - 17.14, while falling under the same definitions and general rules, require extra treatment because of their complexity.

This page last updated in Release Number: 15-01

Release Date: 06/10/2015

Effective Date: 06/10/2015

The information concerning the Medicaid program provided in this handbook release is published in accordance with: Titles XI and XIX of the Social Security Act; Parts 430 through 481 of Title 42 of the Code of Federal Regulations; Chapters 46 and 49 of the Wisconsin Statutes; and Chapters HA 3, DHS 2, 10 and 101 through 109 of the Wisconsin Administrative Code.

Notice: The content within this manual is the sole responsibility of the State of Wisconsin's Department of Health Services (DHS). This site will link to sites outside of DHS where appropriate. DHS is in no way responsible for the content of sites outside of DHS.

Publication Number: P-10030