In Ohio, the Medicaid look-back period is the five-year period before a person applies for certain long-term care Medicaid benefits. During that review, the state looks at whether the applicant gave away assets or transferred property for less than fair market value, which can lead to a penalty period that delays eligibility.
What transfers can trigger a penalty?
Families often run into trouble when they assume a gift or property change will not matter to their benefits determination. However, during this review period, Medicaid may look closely at:
- Gifts to children or other relatives
- Transfers of a home or land
- Adding someone to an account without clear value in return
- Selling property for less than it was worth
- Large withdrawals that the applicant cannot document
Not every transfer results in a penalty. Certain exceptions may apply, and the outcome may depend on the type of asset, who received it and whether the applicant received fair value in return.
Ohio calculates the penalty period by transfer value
If Medicaid finds a disqualifying transfer, it does not permanently bar benefits. Instead, it may impose a penalty period during which Medicaid will not pay for certain long-term care services. The length of that penalty usually depends on the value of the transferred asset and the state’s penalty divisor, which reflects the average cost of nursing facility care under Ohio’s five-year transfer review process.
Financial records can affect the application
A transfer may raise fewer problems if the applicant can show what they transferred, when they made the transfer and what they received in return. Bank records, deeds, account statements and other financial documents often become important during this review. Getting advice from a lawyer on asset transfers and long-term care planning may help identify possible penalty issues before they create delays in a Medicaid application.