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Medicaid: Spousal Refusal

Assets that are transferred to a spouse are exempt from penalty period. However, a spouse of a Medicaid applicant is also limited in how much money they are allowed to have.

If the spouse has more money than allowed, they have to sign something called spousal refusal. This is basically a letter stating that they have more money than they’re allowed to, but they’re not making it available for their spouses medical care. This is the only way a Medicaid applicant can be approved for benefits if their spouse is over the resource limit.

However, signing spousal refusal does give the county the right to come back to the spouse at a later date and request contribution towards the cost of care.

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