Can a person become eligible for Medicaid by giving away their property?
If a person transfers property for less than market value for the purpose of becoming eligible for Medicaid, they are “penalized” by being ineligible for Medicaid for one day for every $117.08 difference between the market value of the property and the amount they received for it. This amount changes from time to time, as it is the amount HHS estimates it costs, on the average, for private-pay nursing home care in Texas. For gifts made on or after February 8, 2006, the ineligibility period begins when you are in a Medicaid-certified nursing home and would meet all the other requirements for Medicaid eligibility but for the transfer. The maximum penalty period, however, is 60 months from the date of the transfer, no matter how much property is transferred, provided that no Medicaid application is filed for at least 60 months. For gifts made before February 8, 2006, the ineligibility period began on the first day of the calendar month in which the gift was made. For example, if property
