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Wisconsin Department of Health and Family Services Obsolete Medicaid Eligibility Handbook For the current MEH, see http://www.emhandbooks.wi.gov/meh-ebd/ For the current BC Plus Handbook, see http://www.emhandbooks.wi.gov/bcplus/ |
If the community spouse made a divestment that resulted in a penalty period for the institutionalized spouse (see 4.7.4 2b), apportion the penalty period between the spouses at the time the community spouse enters an institution and applies for MA.
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Example: Joe Penner is in a nursing home. Mrs. Penner is his community spouse. Joe inherited $84,000 and immediately transferred it to Mrs. Penner. This $84,000 was not part of the community spouse asset share. Mrs. Penner gave it to her church. This divestment resulted in a penalty period of 26 months for Joe Penner. Now Mrs. Penner is entering the nursing home and applying for MA. The time that remains on Joe Penner’s penalty period must be apportioned to both spouses. |
Apportion the penalty period as follows:
Find the divested amount that was used to calculate the original penalty period.
Calculate how much of the divested amount remains to be satisfied by:
Multiplying the average nursing home private pay rate x the number of complete months of the penalty period already served, and
Subtracting the result from the original divested amount.
Calculate the penalty period for the remaining divested amount.
Divide the new penalty period equally between the 2 spouses.
If either spouse leaves the institution or dies, add the remainder of his/her penalty period to the other spouse's penalty period.
This page last updated in Release Number : 01-05
Release Date : 10-01-01
Effective Date :10-01-01