Medical Assistance Update

Avoid A Penalty Period When the Spouse of a Medical Assistance for Long-Term Care (MA-LTC) Applicant or Enrollee Dies

On January 12, 2026, the Minnesota Department of Human Services clarified the policy for evaluating an uncompensated transfer for a MA-LTC applicant or enrollee when a spouse living in the community and not receiving long-term care services dies.

The update to the Eligibility Policy Manual (EPM) explains that the death of a community spouse is a “Change in Circumstance” that must be reported to the county or tribal servicing agency within ten days of the death.

After receiving a report of the death of a community spouse, or otherwise discovering the death, the agency will send a request for verification of the augmented estate to determine if the surviving spouse (who is the MA-LTC applicant or enrollee) received the elective share under Minnesota Statutes section 524.2-202.  If the agency determines that the surviving spouse did not receive an amount at least equal to the elective share, the agency will inform the surviving spouse that they must seek the elective share in a probate proceeding.

Failure to seek the elective share will result in the agency evaluating for an uncompensated transfer and imposing a transfer penalty.  The uncompensated amount is the difference between any proceeds that were distributed to the MA-LTC applicant or enrollee and the amount they were entitled to receive under elective share law.

If a probate proceeding is initiated for the deceased spouse, no uncompensated transfer will be evaluated until the probate is complete.

Bravura Group can help make sure that your loved one does not experience a delay in eligibility or a gap in existing coverage if their spouse passes away while your loved one is receiving MA payment for long-term care services. Please reach out to us to set up an appointment to discuss actions that you can take to make sure that your loved one has seamless coverage.

For more information and to see the updated policy, go to https://hcopub.dhs.state.mn.us/epm/2_4_1_3_4.htm.