The Pennsylvania Medicaid penalty divisor is revised each year as nursing facility care costs increase.  Effective January 1, 2016, the penalty divisor is set at $302.42 per day and $9,198.61 per month. ($302.42 x 365 / 12 = $9,198.61).  These 2016 divisor amounts represent an increase of approximately 3% from the 2015 figures of $293.15 and $8,916.65.

Uncompensated transfers made during the five year look-back period will be calculated at one day of ineligibility for every $302.42 transferred away. In Pennsylvania, transfers penalties will be imposed when the value of transfers made in a month exceeds $500.

Medicaid eligibility and planning is complicated.  It is important to seek professional advice before contemplating any gifting or Medicaid planning.

Medicaid Update

About Jerry

Jerold E. Rothkoff, a practicing New Jersey and Pennsylvania attorney, is the Principal of the Rothkoff Law Group, an elder care law firm. Jerry dedicates his practice to serving clients in the areas of life care planning, long-term care planning, Medicaid & VA benefits, and advocacy for the elderly and disabled. He is past President of the NJ Chapter of the National Academy of Elder Law Attorneys, former chair of the elder law section of the NJ State Bar Association, and past President of the Life Care Planning Law Firm Association. Jerry continues to be an outspoken advocate for the rights of the elderly and disabled. He writes for and gives presentations regularly to attorneys and other professionals about legal issues related to seniors and those with disabilities. Jerry’s community activities include the Twilight Wish Foundation, the Delaware Valley Stroke Council, the Alzheimer’s Association, as well as numerous other advocacy groups. When not in the office, Jerry spends time with his wife, Erica, and their five children, eighteen-year old identical twin girls, Liza and Julia, fifteen-year old fraternal twin boys, Evan and Gregory, and six-year old Aitan.

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