MCA income to well spouse

• March 4, 2024 at 1:52 pm #33517
  Girum Tesfaye

  Hello All,

  If a community spouse (CS) immediately forwards his income from an MCA into a Medicaid trust, will this be considered an uncompensated transfer in case the CS needs LTC after the annuity contract ends? As I understand it, the MCA income does not accumulate into an asset as long as it is out the same month it was received. Any feedback is greatly appreciated.

  Thanks,
  Girum Tesfaye

  March 4, 2024 at 3:53 pm #33518
  Collin Terry

  Girum,

  Yes, any uncompensated transfer by the CS (asset or income) will trigger a penalty period for the CS, should they need LTC within five years of the transfer. You are correct that the monthly MCA income will become an asset the following month. However, the CS must only stay under the CSRA in the month of application. Post application, the CS no longer needs to stay under the CSRA. Only the institutionalized spouse must continue to stay under their $2,000 asset limit to maintain asset eligibility.

  Thanks,

  Collin Terry