Uncompensated Transfers

In Florida, there is a maximum look back period of 60 months along with a $5,000 divisor.  Upon applying for Medicaid benefits, you must disclose to Medicaid any transfers you’ve made over the look back period.  Any uncompensated transfers will undoubtedly result in a penalty period, depending in length on the amount transferred.  The penalty period is calculated by dividing the amount of the transfer by the $5,000 divisor.  The penalty period is significant in that it is the amount of time one must privately pay for their nursing home care.

For example, if a Medicaid applicant, who otherwise qualifies, makes an uncompensated transfer for $20,000 several months before applying for Medicaid benefits, the $20,000 transfer will be divided by $5,000.  This will ultimately result in a four month penalty period meaning the applicant will not qualify for Medicaid benefits until after the four month penalty period is served. It is important to speak to an attorney about what options are available from a planning standpoint before making any planning decisions.  There are viable and perfectly legal options available to help preserve your assets from going to the nursing home.