When the FCRC denies coverage for long term care services (nursing home, SLF, or DoA waiver) due to a penalty period imposed because of a non-allowable transfer or because the person has equity over $525,000 in their home, take the following steps:
- (FCRC) Sends HFS 458LTC, Notice of Decision on Application for Medical Assistance, containing a statement that the person may apply for a hardship waiver. Enclose HFS 2378WA, Application for Hardship Waiver of a Penalty Period.
- (Client or Authorized Representative) Returns HFS 2378WA, or another written request for a hardship waiver along with documentation concerning the transfer to HFS Long Term Care - Asset Discovery Investigation (LTC-ADI) (see PM 01-08-01 and PM 01-08-02).
- (LTC-ADI) Reviews hardship waiver request and accompanying evidence (see PM 01-08-01 and PM 01-08-02). Decides whether to approve the waiver.
- (LTC-ADI) Sends the client HFS 458WA, Notice of Decision on Application for Hardship Waiver, which includes a notice that the decision may be appealed. Sends a copy of HFS 458WA to the FCRC.