An applicant or
recipient, or a long-term care facility on behalf of an applicant or recipient,
may request an undue hardship exemption from a transfer-of-asset penalty period
AAC 100.510(d) or (e)
An applicant or recipient who seeks an
undue hardship exemption must submit the following to the department no later
than 30 days after the date of notice that a transfer-of-asset penalty is being
(1) a written statement indicating
how the applicant, recipient, or community spouse would face undue hardship if
the penalty were imposed;
written statement describing
(A) why the
assets transferred for less than fair market value cannot be returned;
(B) what efforts the applicant
or recipient has made to retrieve the assets.
(c) The director of the division of the
department that handles public assistance, or the director's designee, shall
decide whether to grant or deny an exemption under this section.
The department will not grant an undue
hardship exemption if the department determines that
(1) imposing the penalty merely causes the
applicant or recipient inconvenience or restricts the applicant's or
recipient's lifestyle; or
applicant or recipient transferred the asset without due consideration of the
cost of medical care, food, clothing, or shelter that the applicant, recipient,
or community spouse could reasonably expect to incur.
In this section, "undue hardship" means
that imposition of the transfer-of-asset penalty would deprive the applicant,
recipient, or community spouse of
care to the degree that the individual's life or health would be endangered;
(2) food, clothing, shelter, or
other basic necessities.