Transfers may be allowable if:
As a result of the DRA, any penalty period begins with the month of application or the month the person makes the transfer, whichever is later. Previously, any penalty began with the month the transfer was made.
Example: In 2006, before the DRA changes, Mrs. M gave $15,000 to her children. This created a 3 month penalty since it would have covered her expenses in the long term care facility for 3 months if she were to pay for it herself. But since Mrs. M did not need care until 2011, any penalty had already expired. After the DRA changes, if Mrs. M had made the same transfer in 2008, she would have a penalty for approximately 3 months beginning with the month of application.
When a person applies for long term care (LTC) medical assistance, he or she (or his/her authorized representative) must provide information detailing his or her resources and income. If the person has a spouse living in the community, both spouses are required to cooperate in reporting resources. If either spouse refuses or fails to cooperate in providing information regarding the total value of resources owned by either spouse or both spouses, or refuses consent to verification by the state, the person is ineligible for medical assistance.
After determining income eligibility the total value of resources owned by the LTC spouse, the community spouse, or jointly by both, the Community Spouse Resource Allowance (CSRA), up to $109,560 (see Community Spouse Resource Allowance), may be transferred to the community spouse.
A deduction from income to meet a community spouse's needs is also allowed when the community spouse verifies monthly income and does not have enough income to meet his or her own needs. This is called the Community Spouse Maintenance Needs Allowance (CSMNA; see Community Spouse Maintenance Needs Allowance). The CSMNA is the monthly maintenance needs standard of $2,739 minus the community spouse's gross monthly income. This deduction is not mandatory and is only allowed to the extent the LTC spouse actually contributes income to the community spouse.
After allowing the exemptions detailed above, the remaining resources and income, with the exception of the income standard, are considered available to pay for the care of the LTC spouse. The income standard is an amount the LTC spouse is permitted to keep for his or her personal use (see NH Standard/SLF Standard).
When applying for LTC medical assistance, a person must also report all transfers of resources and income during the 60 months prior to application. The LTC spouse and the community spouse may transfer resources to each other in any amount but the rules and allowances for resources and income (described above) will be applied. All other transfers will be reviewed to determine if fair market value was received (see Allowable Transfers).Transfers made for the purpose of becoming eligible for medical assistance are not allowable.