Transfer Penalty

Medicaid: No transfer penalty where transfer reimbursed third party for advancing expenses

No Penalty Where Transfer Reimbursed Third Party for Paying Applicant’s Expenses. Petitioner was admitted to a nursing home on May 7, 2008 and remained there until her death on July 24, 2008. Petitioner filed an application for Medicaid on July 3, 2008, seeking retroactive coverage. The application was denied after DFCS discovered a $22,668.56 transfer on June 19, 2008, as well as another transfer of $4,500. However, the evidence at the fair hearing showed the recipient had spent more than forty thousand of her own funds paying for Petitioner’s care. The ALJ found there was no transfer for less than fair market value and reverse the decision. Even if the transfer was deemed “a transfer to a relative or others for care provided for free in the past” under Section 2342 and, therefore, without consideration, the evidence proved that reimbursement of payments made to third parties was for compensation. Further, O.C.G.A. § 11-3-303(a) provides that transfer of an interest (e.g., bank draft) may be for value if transferred as payment of, or as security for, an antecedent claim. Under O.C.G.A. § 11-3-303 (b), such a transfer is for consideration. Thus, Petitioner rebutted the presumption that the transfers were for less than fair market value. (Homel v. Department).

OSAH-Richmond-Woodard-11-2008.pdf (November 7, 2008).

Published by
David McGuffey

Recent Posts

Medicaid Post Eligibility Treatment of Income and Incurred Medical Expenses

After Medicaid eligibility is established, 42 C.F.R. § 435.725 addresses how income is treated. For…

7 days ago

Medicaid’s Refusal to Provide 24/7 Care in the Community Might be Discrimination

In Harrison v. Young (5th Cir. June 6, 2024), the Fifth Circuit considered Ms. Barbara…

3 weeks ago

Updates to Nursing Home Quality of Care Regulations

From time to time federal regulations covering nursing home quality of care are updated. Thus…

3 weeks ago

Federal Nursing Home Quality of Care Regulations

Nursing homes that accept Medicare or Medicaid are required to comply with quality of care…

3 weeks ago

New Article Discussing Medicaid Enrollment and Wealth Transfers

On June 11, 2024, the Gerontologist published an article on Medicaid enrollment and Intergenerational transfers…

4 weeks ago

Virtual Dementia Tour

Dementia affects more than 50 million people worldwide. The Virtual Dementia Tour is designed to…

4 weeks ago