MedicaidAdministrativeLow impact
MSA 18-28
Michigan Medicaid - MDHHS·MI · Geriatrics, General Practice·Provider Bulletin
Effective date
Oct 1, 2018
We identified it
Jun 20, 2026
Summary
New CMS guidelines now allow divestment penalties to be applied to MI Choice Waiver Program applicants who transferred assets for less than fair market value, enabling them to receive waiver services while serving their penalty period. This affects Medicaid eligibility determination and waiver enrollment processes.
Action Required
By October 1, 2018: Eligibility staff must update MI Choice Waiver Program enrollment procedures to include divestment penalty assessments. Verify all four CMS requirements are met before confirming waiver slot placement: Medicaid eligibility, level of care criteria, person-centered service plan, and available waiver slot. Update Initial Asset Assessment procedures to use 30-day continuous care periods for institutionalized spouses/applicants.