DHA Case No. MGE 173712 (Wis. Div. Hearings and Appeals Sep. 7, 2016) (DHS) ↓ Download PDF To be income-eligible for Institutional MA, an applicant must qualify as either categorically needy (having a very low income) or medically needy, having income less than her monthly need—of which the cost of the nursing home is 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. MGE 214773 (Wis. Div. Hearings and Appeals Nov. 1, 2024) (DHS) ↓ Download PDF The county agency is required to verify a Medicaid applicant’s income and assets, including potential divestments. In this case, the petitioner reported a $5,000 transfer to his sister for “paid bills” and his bank statements showed withdrawals of […] Read more

DHA Case No. MDV 214370 (Wis. Div. Hearings and Appeals Oct. 22, 2024) (DHS) ↓ Download PDF The transfer of an exempt asset (except a homestead) is not a divestment. In this case, the petitioner bought a car—though she could not drive herself—that her son used to transport her to medical appointments. About seven months […] Read more

DHA Case No. MRA 213346 (Wis. Div. Hearings and Appeals Aug. 30, 2024) (DHS) ↓ Download PDF An ALJ may increase the community spouse income allocation (CSIA) if the community spouse does not have enough income to pay his or her “necessary and basic maintenance needs.” In this case, ALJ Nicole Bjork increased the CSIA […] Read more

DHA Case No. MDV 177535 (Wis. Div. Hearings and Appeals Feb. 9, 2017) (DHS) ↓ Download PDF When a Medicaid applicant can show that transfers to family members were made for a purpose other than to qualify for Medicaid, those transfers are not divestments. In this case, the petitioner made more than a hundred small […] Read more

DHA Case No. MDV 190237 (Wis. Div. Hearings and Appeals Dec. 13, 2018) (DHS) ↓ Download PDF Any transfer of resources for less than fair market value is generally a divestment, but there is an exception if the resource was transferred “exclusively for some other purpose than to become eligible for MA.” In this case, […] Read more

DHA Case No. MDV 71/35825 (Wis. Div. Hearings and Appeals Aug. 28, 1998) (DHS) ↓ Download PDF It is generally a divestment to sell real estate for less than its fair market value. In this case, the petitioner sold his home on the market for $62,000, less than its tax-assessed value of $72,100. ALJ Kenneth […] Read more

DHA Case No. MDV 40/44764 (Wis. Div. Hearings and Appeals 2001) (DHS) ↓ Download PDF It is generally a divestment to sell real estate for less than its fair market value. In this case, the petitioner sold her duplex on the market for $72,500, less than its tax-assessed value of $95,900. ALJ Joseph Nowick concluded […] Read more

DHA Case No. MDV 70/74428 (Wis. Div. Hearings and Appeals Apr. 18, 2006) (DHS) ↓ Download PDF One exception to the usual divestment rule is if the transfer was not made for the purpose of becoming eligible for Medicaid. In this case, the petitioner’s POA transferred three pieces of real estate to family members before […] Read more

DHA Case No. MDV 45/81748 (Wis. Div. Hearings and Appeals Feb. 26, 2007) (DHS) ↓ Download PDF A certified appraisal generally considers a home’s condition when estimating its fair market value. In this case, the petitioner sold her home to her son for $80,000. About one year earlier, an appraisal done for refinancing estimated the […] Read more

DHA Case No. MDV 23/99503 (Wis. Div. Hearings and Appeals Jan. 26, 2009) (DHS) ↓ Download PDF Purchasing an annuity or promissory note with interest at less than the applicable federal rate is a divestment. In this case, the petitioner established a private annuity that met all other requirements but returned no interest. ALJ Kenneth […] Read more

DHA Case No. MDV 37/61571 (Wis. Div. Hearings and Appeals Apr. 7, 2004) (DHS) ↓ Download PDF Fair market value is an estimate of the amount an asset will sell for in an arms-length transaction on the open market. In this case, the petitioner sold three residential properties to his sons for their appraised value, […] Read more

DHA Case No. MDV 45/55210 (Wis. Div. Hearings and Appeals, 2003) (DHS) ↓ Download PDF It is generally a divestment for a community spouse to transfer assets for less than fair market value to anyone other than the institutionalized spouse. In this case, the community spouse’s interest in marital property was transferred by his revocable […] Read more