Minnesota Medicaid Look-Back Period

Last updated: August 21, 2026 Jurisdiction: Minnesota

Minnesota uses a five-year transfer review

DHS tells nursing-home applicants that they and a spouse cannot give away assets or income without adequate compensation within 60 months of asking MA to pay nursing-home costs. Minnesota's transfer statute likewise applies to transfers for less than fair market value and supplies the long-term-care penalty framework (DHS nursing-home coverage guide; Minnesota Statutes section 256B.0595).

The review is not a gift-tax exercise. A transfer can be a sale, gift, partial-interest transaction, trust funding, or other disposal for less than fair market value. Facts such as ownership, date, valuation, consideration, exemptions, and purpose matter, so families should retain deeds, appraisals, account records, contracts, and proof of payment (Minnesota Statutes section 256B.0595).

The penalty calculation needs the current state rate

Minnesota law bases a transfer penalty on the uncompensated value divided by the statewide average MA rate for nursing-facility services in effect on the application date. The most recent public Minnesota House Research guide located for this page identifies $11,653 per month effective July 1, 2025 and says the rate is recalculated each July 1. That is a verified historical benchmark, not a substitute for the rate in force on a 2026 application (Minnesota Statutes section 256B.0595; Minnesota House Research asset guide).

The public House guide explains that the penalty affects MA payment for long-term-care services, while the person may remain eligible for other MA services. It also explains that the period starts when the person is otherwise eligible for MA long-term-care services, has moved to a nursing facility or begun waiver services, and has submitted an application. Those timing elements are why an informal “five years ago” rule is incomplete (Minnesota House Research asset guide).

Home transactions require special caution

A transfer-on-death deed operates at death under Minnesota property law, but its use should still be reviewed with the broader MA planning facts. Minnesota's recovery statute specifically includes property transferred by TOD deed in its estate definition, so probate avoidance is not equivalent to a settled MA solution (Minnesota Statutes section 507.071; Minnesota Statutes section 256B.15).

Look-back: 60 months. Last verified divisor: $11,653/month effective July 1, 2025; verify the rate applying on the actual application date (Minnesota House Research asset guide).

For broader context, see Crisis Planning / Half-a-Loaf. A Minnesota elder-law attorney should review a proposed transfer before it is completed.

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Minnesota uses a five-year transfer review

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