Michigan publishes a current penalty divisor
BEM 405 calculates the penalty by dividing the uncompensated value of divested resources by Michigan's average monthly private-pay nursing-facility cost for the client's baseline year. The listed 2026 divisor is $12,216 per month (MDHHS BEM 405).
The result establishes full penalty months, and any remaining fraction is multiplied by 30 to calculate penalty days. BEM 405 says there is no maximum length for a penalty period and no minimum transfer amount before one can apply (MDHHS BEM 405).
2026 Michigan divisor: $12,216 per month. The divisor is an MDHHS baseline-year figure, not a permanent planning constant; older secondary figures should not be treated as current (
MDHHS BEM 405).
A penalty affects LTC services, not every Medicaid service
During a divestment penalty, BEM 405 says Medicaid will not pay for LTC services, MI Choice or PACE waiver services, Home Help, or home health. The same manual says Medicaid continues to pay for other non-LTC covered services during the penalty period (MDHHS BEM 405).
That scope is why a transfer analysis cannot be reduced to whether someone keeps ordinary medical coverage. It must address the payment gap for the nursing-facility or community-based services actually needed (MDHHS BEM 405).
Lady Bird deeds are not ordinary gifts
Michigan institutional sources explain that a Lady Bird deed lets the grantor retain unrestricted rights to use, sell, mortgage, convey, and change the beneficiary. Because of those retained rights, the cited Michigan materials describe the deed as not a Medicaid disposition or divestment (State Bar of Michigan Journal; MSU Extension).
Michigan's 60-month review matches Florida's Medicaid look-back page, but Michigan's divisor and mechanics are state-specific (MDHHS BEM 405). See Crisis Planning / Half-a-Loaf.
Not mutually exclusive. Most families combine two or three funding pillars — this one rarely stands alone.
The
Journey Assessment ranks all ten pillars against your specific situation and
recommends the top three.
