The CAO will notify the individual and all applicable parties listed in Chapter 477.1 when there is a denial or termination of payment of LTC services resulting from the transfer of an asset for less than FMV or if the individual has equity interest in the home that exceeds the limit found in Chapter 440_422, Excess Home Equity.
When the CAO enters the asset transfer or excess home equity in the system, the system will automatically generate:
a notice to applicant authorizing MA but denying payment of LTC services; and
When a penalty period is established in the system the CAO must manually send:
an Application for Undue Hardship Waiver (PA 1827) or an Application for Undue Hardship Waiver-Excess Home Equity (PA 1827-E).
After receiving a completed Application for Undue Hardship Waiver or Application for Undue Hardship Waiver-Excess Home Equity, the CAO will submit the Application with a completed Undue Hardship Decision Form (PA 1855) to the Bureau of Policy (BOP).
Once a decision is received from BOP, the CAO has five calendar days to notify all involved parties of this decision. Until automated notices are available, the CAO will send a manual notice of the decision using the appropriate text and citations found in Appendices A, B and C of this chapter.
If it is decided that the undue hardship waiver is fully approved the CAO will send a manual notice using the language and citations found in Appendix A.
If it is decided that the undue hardship waiver is partially approved the CAO will send a manual notice using the language and citations found in Appendix B.
If it is decided that the undue hardship waiver has been denied the CAO will send a manual notice using the language and citations found in Appendix C. 55 Pa. Code ยง 178.104(b)
Issued May 1, 2012