December 1973 Eligibility Requirements Manual

1040.030.00 Determining the Penalty Period

IM-57 May 19, 2022; IM-57 May 18, 2020; IM-28 May 1, 2014

The Deficit Reduction Act of 2005 Section 6011(d), 42 U.S.C. 1396p (c)(2)(D) required each state to establish procedures for determining when a transfer of assets penalty would cause an undue hardship. A transfer of assets penalty period must be waived when the imposition of the penalty period will:

  • Endanger the individual’s health or life; or
  • Deprive the individual of food, clothing, shelter, or other necessities of life

At the same time the notification of ineligibility for MO HealthNet vendor, Home and Community Based Services (HCB), Missouri Children with Developmental Disabilities (MOCDD) Waiver is sent to individuals on whom a penalty is imposed, inform the individual of the undue hardship exception and provide the individual with a MO HealthNet Undue Hardship Waiver Request (IM-63HWR) form.

The completed MO HealthNet Undue Hardship Waiver Request form, along with supporting documentation, must be submitted to the Family Support Division (FSD) office to request the waiver of the transfer penalty period. All documents are to be sent as an attachment with a Request for Interpretation of Policy (IM-14) form through supervisory channels for Income Maintenance programs. Policy staff will review documents to determine if an undue hardship exists and the transfer of assets penalty period will be waived.

In addition to the applicant/participant or their representative, a completed MO HealthNet Undue Hardship Waiver Request form can be submitted by the Administrator of the nursing facility in which the individual resides when given written permission. The nursing facility administrator can request a fair hearing and/or represent the institutionalized individual in any subsequent fair hearing activity involving an undue hardship request/denial, as long as the facility has the (or his/her representative’s) written permission.

NOTE: This provision does not appoint the facility Administrator as the institutionalized individual’s authorized representative under 0130.020.10 Appointment of an Authorized Representative.