Understanding Medicaid And The Undue Hardship Exception
When an individual in a nursing home applies for Medicaid benefits, the Medicaid agency will examine the applicant’s financial statements to determine if any assets were transferred during the five years prior to application. If assets were transferred to someone other than a spouse or a disabled child for less than fair market value, the agency will impose a period of ineligibility, i.e. a penalty period. The individual will not be eligible for Medicaid benefits and will be required to pay privately until the penalty period expires.
