I-5000, Calculation of Penalty Period


Revision 21-3; Effective September 1, 2021

The penalty period is determined by dividing the uncompensated value of all assets transferred by the average monthly cost of nursing facility care for a private-pay patient. The penalty period calculation applies to the transfer of both income and resources.

Examples in this section may not reflect the most recent amount of the average private-pay cost per day that is used for the transfer of assets divisor.

When a person has both substantial home equity that exceeds the established limit and a transfer of assets penalty, place the person in Home Equity Manor first. If the person provides proof that the reduced home equity value is at or below the established limit, then place the person in Mason Manor for the duration of the transfer penalty.

The penalty start date is the first day of the month of the medical effective date, if the person meets all other eligibility criteria.