DHA Case No. MDV 66/71952 (Wis. Div. Hearings and Appeals Jan. 25, 2006) (DHS) ↓ Download PDF A divestment penalty may be “cured” by returning the divested resource, or its equivalent value, to the individual. In this case, the petitioner made multiple divestments during the lookback period totaling more than $200,000, but her son paid […] Read more

DHA Case No. MDV 147776 (Wis. Div. Hearings and Appeals Jul. 12, 2013) (DHS) ↓ Download PDF The divestment penalty period for an Institutional MA applicant begins on the first date the person (1) is institutionalized, (2) has applied for Medicaid, and (3) is otherwise eligible for Medicaid. In this case, the petitioner applied on […] Read more

DHA Case No. MDV 146016 (Wis. Div. Hearings and Appeals Mar. 5, 2013) (DHS) ↓ Download PDF The divestment penalty period for a Family Care applicant begins on the first date the person (1) has applied for Family Care, (2) “meets the appropriate level of care and functional screen criteria,” and (3) meets all other […] Read more

DHA Case No. FCP 140118 (Wis. Div. Hearings and Appeals Jul. 13, 2012) (DHS) ↓ Download PDF Adivestment occurs when an institutionalized individual or spouse transfers assets for less than fair market value during the look-back period. In this case, the petitioner’s husband made cash withdrawals of $100,000 and $17,000 shortly before the application for […] Read more

DHA Case No. MDV 130600 (Wis. Div. Hearings and Appeals May 23, 2011) (DHS) ↓ Download PDF A transfer of income or resources for less than fair market value is a divestment and results in a penalty period, unless the transfer qualifies for an exception. One exception is if the applicant can show a pattern […] Read more

DHA Case No. MGE 217838 (Wis. Div. Hearings and Appeals Jul. 15, 2025) (DHS) ↓ Download PDF Court-ordered support payments are deducted from income for an “institutionalized person,” according to the Medicaid Eligibility Handbook (MEH). In this case, the petitioner paid $4,059 per month in court-ordered spousal support, had monthly income of $12,089.20 ($8,045.98 from a […] Read more

DHA Case No. MDV 214223 (Wis. Div. Hearings and Appeals Nov. 27, 2024) (DHS) ↓ Download PDF A divestment penalty is generally imposed when an applicant reports a divestment and would be otherwise eligible. In this case, the petitioner originally applied in 2020 after creating an irrevocable trust, but no divestment penalty was imposed because […] Read more

DHA Case No. MDV 13/106538 (Wis. Div. Hearings and Appeals Jan. 4, 2010) (DHS) ↓ Download PDF A transfer to an irrevocable trust is generally a divestment if the trust cannot make payments back to (or for the benefit of) the grantor under any circumstances, but a divestment can be cured if the full value […] Read more

DHA Case No. MDV 213193 (Wis. Div. of Hearings and Appeals June 17, 2024) (DHS) ↓ Download PDF The surrender value of life insurance is generally available if the owner has the right to surrender it and the proceeds will be made available in less than 30 days. In this case, the petitioner divested and […] Read more

DHA Case No. MGE 209474 (Wis. Div. of Hearings and Appeals January 5, 2024) (DHS) ↓ Download PDF To exempt funds in a pooled trust, an applicant for Medicaid must have a formal disability determination. In this case, the petitioner applied for community waivers Medicaid after establishing a pooled trust sub-account. Because he did not […] Read more

DHA Case No. MDV 209022 (Wis. Div. of Hearings and Appeals August 25, 2023) (DHS) ↓ Download PDF An appeal of a divestment penalty must be filed within 45 days; an appeal of a hardship waiver denial must also be filed within 45 days. In this case, the agency imposed a divestment penalty when the […] Read more

DHA Case No. MDV 210996 (Wis. Div. of Hearings and Appeals December 27, 2023) (DHS) ↓ Download PDF The penalty period for divestments reported or discovered during the COVID-19 does not begin until “the member’s next renewal that occurs after April 1, 2023.” In this case, the petitioner sold her house in January 2023 and […] Read more

DHA Case No. MDV 193440 (Wis. Div. of Hearings and Appeals June 11, 2019) (DHS) ↓ Download PDF A land contract must have a term within the lender’s life expectancy, provide for equal payments, and not allow cancellation on the death of the lender to avoid being considered a divestment. If it does not meet […] Read more

DHA Case No. MDV 208757 (Wis. Div. of Hearings and Appeals July 27, 2023) (DHS) ↓ Download PDF To waive the entire divestment penalty, an undue hardship waiver request must be filed within 20 days of the undue hardship notice letter mailed by the agency. If filed later, the earliest effective date is the date […] Read more