Medicare-Medicaid Pay-Down of Assets
State law and regulations impose income and asset limits on persons applying for Medicaid.
An applicant for Medicaid may have a monthly income of no more than $2,901, or $5 for a married couple applying jointly.
An applicant may have assets of no more than $2000, or $3000 for a married couple applying jointly.
When an individual or spouse has transferred or disposed of assets for less than fair market value on or after the look-back date, the individual shall be ineligible for medical assistance for a period of ineligibility. The period of ineligibility shall begin on the later of the first day of the first month during which the assets were transferred; or the date on which the individual is eligible for medical assistance and would be receiving nursing facility services, a level of care in any institution equivalent to that of nursing facility services, or home- and community-based waiver services. For transfers made on or after February 8, 2006, the look-back date is the date that is 60 months before the date an institutionalized individual is both an institutionalized individual and has applied for medical assistance; or the date a non institutionalized individual applies for medical assistance.
The number of months of ineligibility shall be equal to the total cumulative uncompensated value of all assets transferred by the individual (or the individual's spouse) on or after the look-back date, divided by the statewide average private-pay rate for nursing facility services at the time of application.
Iowa Amin. Code § 441-75.23
Iowa Dept. of Health and Human Services, Medicaid Programs