In order to discourage people from disposing of valuable assets and real estate in order to become eligible for Medicaid nursing home services, NJ regulations impose a period of ineligibility to any applicant who transfers resources for less than fair market value during a sixty-month look-back period (5 years). N.J.A.C. 10:71-4.10(a)(2). Transfers made within the look-back period “are presumed to be improperly motivated to obtain Medicaid eligibility.” Read the regulations. However, an applicant retains the right to rebut this presumption. N.J.A.C. 10:71-4.10(i). This means you have the right of challenge the state’s claim that you transferred resources just to become Medicaid eligible. If the presumption is not rebutted, the state imposes a transfer penalty, calculating the period of ineligibility following a transfer of an available resource. N.J.A.C. 10:71-4.10(b)(4) and 10:71-4.10(c).
If there is reason to believe an applicant transferred assets for no value (i.e., a gift) the County can request verification of the applicant’s resource statements through one or more third parties going back 5 years. N.J.A.C. 10:71-4.1(d)(3).
To discuss your NJ Medicaid matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Medicaid Attorney