Medicare-Medicaid Pay-Down of Assets
State law and regulations impose income and asset limits on persons applying for Medicaid.
The income limit for the institutional Medicaid program and certain home and community-based waiver programs is determined by the Tennessee Division of TennCare. For 2025, the Medicaid income limit for individuals eligible for the Nursing Home (institutional) program is $2,901 per month. To be eligible for Medicaid, an individual may not have assets in excess of $2,000 as of the first day of the month.
An individual, or the spouse of such individual, who is an applicant or recipient of either institutional Medicaid or home and community-based waiver services, who transfers an asset at any time on or after the “look-back date”, for less than fair market value for the purpose of establishing or maintaining eligibility will cause the individual to be charged with the difference between the fair market value of the asset and the amount of any compensation received. The “look-back date” for an institutionalized individual is the date that is 60 months immediately prior to the later of the first day of the month of the original, initial application. For individuals receiving home and community-based waiver services, the “look-back date” is the date that is 60 months immediately prior to the later of the first day of the month of the original, initial application or the first day of the month in which the individual disposes of assets for less than fair market value. For transfers relating to trusts, annuities, or similar legal instruments, the “look-back date” is 60 months.
Tennessee Division of TennCare – Qualifying for CHOICES
Tennessee Transfer of Assets and Penalty Periods
Tenn. Comp. R. & Regs. 1200-13-20