Florida Medicaid monthly gift exemption has increased

When a person applies for Florida Medicaid long-term care benefits, any uncompensated transfers the applicant or the spouse has made within the look back period are examined by Medicaid.  Medicaid divides the dollar value of these transfers by a monthly gift exemption, or penalty divisor. This yields the length of the penalty period, i.e., the length of time the applicant will not be eligible to receive Medicaid benefits.


Beginning May 1, 2012, Florida increased the penalty divisor from $5,000 to $6,880. Obviously the larger divisor means that for any uncompensated transfer, the length of the penalty period is reduced. Click here for a full explanation and examples of how Florida uses the monthly gift exemption to arrive at the penalty period.