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Florida Medicaid Penalty Divisor Increases September 1, 2012

September 17, 2012 in News

Posted bykarplaw Florida’s Medicaid rules are complicated, and always changing. Just a few weeks ago Medicaid increased its so-called monthly penalty divisor. Now, it’s been increased again.. Effective Sept. 1, 2012 Florida Medicaid’s penalty divisor increases from $6,880 to $7,362. What is the penalty divisor? When a person applies for Medicaid benefits for long-term care, Medicaid “looks back” at uncompensated transfers. The lookback period may be either three years or five years, depending on when the transfer was made. Medicaid then totals up the value of all uncompensated transfers and divides the total by the penalty divisor. This yields the number of months that the applicant will not be eligible to receive Medicaid benefits, assuming that the applicant meets all other eligibility criteria. The penalty period begins to run when the application is submitted. More information and explanation of Florida Medicaid lookback periods and the penalty divisor. If you have a loved one who needs long-term care and you want to preserve assets, contact our Medicaid planning attorneys for assistance. Asset preservation is often possible even if your loved one is already in a nursing home.


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