Medicaid for the Elderly, Blind or Disabled
Divestment is giving away resources, such as income, non-exempt assets and property for less than fair market value to be able to enroll in Medicaid. Fair market value is an estimate of the price an asset could have been sold for on the open market at the time it was given away or sold below value. Divestment is also an action taken to avoid receiving income or assets that you are entitled to receive.
Divesting financial resources 60 months before your application, institutionalization or after you are enrolled may result in a divestment penalty period.
Medicaid will not pay for long term care benefits through the Community Waivers, Institutional Medicaid or Family Care plans, during a divestment penalty period.
The divestment penalty period is calculated as follows:
|| Divested amount
|| Average nursing home cost per month
|| Length of the divestment penalty period (in months)*
*For divestments that occurred on or after 01/01/09, the penalty period includes partial months of ineligibility.
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September 07, 2012