Medical Assistance: Penalty Period for Gifts During the 5-Year Lookback Period
When a person applies for Medical Assistance (Medicaid) in Minnesota, the state looks to any uncompensated transfers (e.g. gifts to family members) during the past 5 years. This is called the “5-year lookback period.” Depending on the amount of the uncompensated transfer, the state will deny coverage for a period of time (“penalty period.”)
The calculation for the penalty period starts by determining the uncompensated transfer amount. The uncompensated amount of transfers is the amount of income transferred or the fair market value (FMV) of the asset transferred, less any encumbrances and compensation received, on the transfer date. Exceptions exist for an annuity, a life estate, and a trust.
For Medical Assistant applicants, the transfer penalty may be imposed for transfers made during the lookback period. The transfer penalty is calculated by adding together all uncompensated transfers and dividing that amount by the MA Statewide Average Payment for a Skilled Nursing Facility (SAPSNF) in effect in the month the applicant was found to be otherwise eligible for MA-LTC. For July 1, 2017 to June 30, 2018, the SAPSNF is $7,106. The penalty period is the full number of months plus any partial months resulting from this calculation.
Minnesota Medical Assistance (Medicaid) Uncompensated Transfers Penalty Period Table
For July 1, 2017 to June 30, 2018, here is a simple chart so you can see how long the penalty period is for uncompensated transfers:
| Uncompensated Transfer Amount | Penalty Period |
| $7,106 | Month 1 |
| $14,212 | Month 2 |
| $21,318 | Month 3 |
| $28,424 | Month 4 |
| $35,530 | Month 5 |
| $42,636 | Month 6 |
| $49,742 | Month 7 |
| $56,848 | Month 8 |
| $63,954 | Month 9 |
| $71,060 | Month 10 |
| $78,166 | Month 11 |
| $85,272 | Month 12 |
| $92,378 | Year 2 |
| $99,484 | Month 14 |
| $106,590 | Month 15 |
| $113,696 | Month 16 |
| $120,802 | Month 17 |
| $127,908 | Month 18 |
| $135,014 | Month 19 |
| $142,120 | Month 20 |
| $149,226 | Month 21 |
| $156,332 | Month 22 |
| $163,438 | Month 23 |
| $170,544 | Month 24 |
| $177,650 | Year 3 |
| $184,756 | Month 26 |
| $191,862 | Month 27 |
| $198,968 | Month 28 |
| $206,074 | Month 29 |
| $213,180 | Month 30 |
| $220,286 | Month 31 |
| $227,392 | Month 32 |
| $234,498 | Month 33 |
| $241,604 | Month 34 |
| $248,710 | Month 35 |
| $255,816 | Month 36 |
| $262,922 | Year 4 |
| $270,028 | Month 38 |
| $277,134 | Month 39 |
| $284,240 | Month 40 |
| $291,346 | Month 41 |
| $298,452 | Month 42 |
| $305,558 | Month 43 |
| $312,664 | Month 44 |
| $319,770 | Month 45 |
| $326,876 | Month 46 |
| $333,982 | Month 47 |
| $341,088 | Month 48 |
| $348,194 | Year 5 |
| $355,300 | Month 50 |
| $362,406 | Month 51 |
| $369,512 | Month 52 |
| $376,618 | Month 53 |
| $383,724 | Month 54 |
| $390,830 | Month 55 |
| $397,936 | Month 56 |
| $405,042 | Month 57 |
| $412,148 | Month 58 |
| $419,254 | Month 59 |
| $426,360 | Month 60 |