[CMP] Certified Medicaid Planner Practice Exam | 100 Q&A
Subject/Course: Finance, Insurance, Elder Law, Healthcare, Social Work,
Certification
Tags: Certified Medicaid Planner, CMP, Medicaid Eligibility, Long-Term Care
Planning, Asset Protection, Annuities, Trusts, Look-Back Period, Spousal
Impoverishment
1. The primary federal law governing the Medicaid program is the:
A) Social Security Act, Title XIX
B) Affordable Care Act
C) Health Insurance Portability and Accountability Act (HIPAA)
D) Employee Retirement Income Security Act (ERISA)
Correct Answer: A) Social Security Act, Title XIX
Explanation: Medicaid was established in 1965 as Title XIX of the Social Security
Act. It is a federal-state partnership program providing health coverage to eligible
low-income individuals.
2. A Certified Medicaid Planner (CMP) primarily assists clients with:
A) Filing annual tax returns
B) Qualifying for Medicaid benefits while preserving assets for family or care
needs
C) Selling life insurance policies
D) Investing in the stock market
Correct Answer: B) Qualifying for Medicaid benefits while preserving assets for
family or care needs
,Explanation: CMPs specialize in the complex rules of Medicaid eligibility,
particularly for long-term care, and employ legal strategies to protect assets
within the bounds of federal and state law.
3. The "Look-Back Period" for Medicaid long-term care eligibility is currently:
A) 12 months
B) 36 months (60 months for certain trusts)
C) 60 months (5 years) for all asset transfers
D) There is no look-back period
Correct Answer: C) 60 months (5 years) for all asset transfers
Explanation: Under the Deficit Reduction Act of 2005, the look-back period for all
transfers (gifts, sales for less than fair market value) is 60 months (5 years)
preceding the Medicaid application date.
4. During the look-back period, a disqualifying transfer of assets results in a:
A) Fine paid to the government
B) Period of Medicaid ineligibility, calculated by dividing the uncompensated
value by the state's penalty divisor
C) Permanent ban from Medicaid
D) Requirement to repay the transferred amount
Correct Answer: B) Period of Medicaid ineligibility, calculated by dividing the
uncompensated value by the state's penalty divisor
Explanation: Penalty Period = (Total Uncompensated Value of Transfers) / (State
Penalty Divisor). The divisor is the average monthly private pay rate for nursing
home care in the state.
5. The "Community Spouse Resource Allowance" (CSRA) is:
,A) The income the institutionalized spouse must pay toward care
B) The amount of assets the community (at-home) spouse is allowed to retain
without affecting the institutionalized spouse's Medicaid eligibility
C) The total assets a single applicant can have
D) The amount of the Medicaid applicant's pension
Correct Answer: B) The amount of assets the community (at-home) spouse is
allowed to retain without affecting the institutionalized spouse's Medicaid
eligibility
Explanation: The CSRA is a federal minimum/maximum amount, adjusted
annually, that protects assets for the well spouse. States may set their own CSRA
within the federal range.
6. The "Monthly Maintenance Needs Allowance" (MMNA) is:
A) The amount of income the institutionalized spouse is allowed to keep for
personal needs
B) The amount of income from the institutionalized spouse that can be diverted
to the community spouse to bring their income up to a minimum level
C) The cost of the nursing home
D) The applicant's Social Security income
Correct Answer: B) The amount of income from the institutionalized spouse that
can be diverted to the community spouse to bring their income up to a minimum
level
Explanation: If the community spouse's own income is below the MMNA, income
from the institutionalized spouse can be allocated to them, up to the MMNA limit,
before the institutionalized spouse's income is applied to their cost of care.
7. For a single applicant in most states, the countable asset limit for Medicaid
nursing home eligibility is approximately:
, A) $1,000
B) $2,000
C) $5,000
D) $10,000
Correct Answer: B) $2,000
Explanation: While it varies slightly by state, the typical limit for a single individual
is $2,000 in countable assets. Some states may have limits as low as $1,500 or as
high as $8,000.
8. Which of the following is typically considered a "non-countable" or "exempt"
asset for Medicaid eligibility?
A) Cash in a checking account over $2,000
B) A primary residence (with an equity limit, often $713,000 in 2024, and intent to
return)
C) A second car
D) Stocks and bonds in a brokerage account
Correct Answer: B) A primary residence (with an equity limit, often $713,000 in
2024, and intent to return)
Explanation: The primary home is exempt if the applicant/community spouse lives
in it or intends to return, subject to an equity limit that is indexed annually. Other
exemptions include one vehicle, personal belongings, and certain burial funds.
9. A "Miller Trust" (also called a Qualified Income Trust or QIT) is used primarily
to:
A) Protect the primary home from estate recovery
B) Convert countable assets into non-countable assets
Subject/Course: Finance, Insurance, Elder Law, Healthcare, Social Work,
Certification
Tags: Certified Medicaid Planner, CMP, Medicaid Eligibility, Long-Term Care
Planning, Asset Protection, Annuities, Trusts, Look-Back Period, Spousal
Impoverishment
1. The primary federal law governing the Medicaid program is the:
A) Social Security Act, Title XIX
B) Affordable Care Act
C) Health Insurance Portability and Accountability Act (HIPAA)
D) Employee Retirement Income Security Act (ERISA)
Correct Answer: A) Social Security Act, Title XIX
Explanation: Medicaid was established in 1965 as Title XIX of the Social Security
Act. It is a federal-state partnership program providing health coverage to eligible
low-income individuals.
2. A Certified Medicaid Planner (CMP) primarily assists clients with:
A) Filing annual tax returns
B) Qualifying for Medicaid benefits while preserving assets for family or care
needs
C) Selling life insurance policies
D) Investing in the stock market
Correct Answer: B) Qualifying for Medicaid benefits while preserving assets for
family or care needs
,Explanation: CMPs specialize in the complex rules of Medicaid eligibility,
particularly for long-term care, and employ legal strategies to protect assets
within the bounds of federal and state law.
3. The "Look-Back Period" for Medicaid long-term care eligibility is currently:
A) 12 months
B) 36 months (60 months for certain trusts)
C) 60 months (5 years) for all asset transfers
D) There is no look-back period
Correct Answer: C) 60 months (5 years) for all asset transfers
Explanation: Under the Deficit Reduction Act of 2005, the look-back period for all
transfers (gifts, sales for less than fair market value) is 60 months (5 years)
preceding the Medicaid application date.
4. During the look-back period, a disqualifying transfer of assets results in a:
A) Fine paid to the government
B) Period of Medicaid ineligibility, calculated by dividing the uncompensated
value by the state's penalty divisor
C) Permanent ban from Medicaid
D) Requirement to repay the transferred amount
Correct Answer: B) Period of Medicaid ineligibility, calculated by dividing the
uncompensated value by the state's penalty divisor
Explanation: Penalty Period = (Total Uncompensated Value of Transfers) / (State
Penalty Divisor). The divisor is the average monthly private pay rate for nursing
home care in the state.
5. The "Community Spouse Resource Allowance" (CSRA) is:
,A) The income the institutionalized spouse must pay toward care
B) The amount of assets the community (at-home) spouse is allowed to retain
without affecting the institutionalized spouse's Medicaid eligibility
C) The total assets a single applicant can have
D) The amount of the Medicaid applicant's pension
Correct Answer: B) The amount of assets the community (at-home) spouse is
allowed to retain without affecting the institutionalized spouse's Medicaid
eligibility
Explanation: The CSRA is a federal minimum/maximum amount, adjusted
annually, that protects assets for the well spouse. States may set their own CSRA
within the federal range.
6. The "Monthly Maintenance Needs Allowance" (MMNA) is:
A) The amount of income the institutionalized spouse is allowed to keep for
personal needs
B) The amount of income from the institutionalized spouse that can be diverted
to the community spouse to bring their income up to a minimum level
C) The cost of the nursing home
D) The applicant's Social Security income
Correct Answer: B) The amount of income from the institutionalized spouse that
can be diverted to the community spouse to bring their income up to a minimum
level
Explanation: If the community spouse's own income is below the MMNA, income
from the institutionalized spouse can be allocated to them, up to the MMNA limit,
before the institutionalized spouse's income is applied to their cost of care.
7. For a single applicant in most states, the countable asset limit for Medicaid
nursing home eligibility is approximately:
, A) $1,000
B) $2,000
C) $5,000
D) $10,000
Correct Answer: B) $2,000
Explanation: While it varies slightly by state, the typical limit for a single individual
is $2,000 in countable assets. Some states may have limits as low as $1,500 or as
high as $8,000.
8. Which of the following is typically considered a "non-countable" or "exempt"
asset for Medicaid eligibility?
A) Cash in a checking account over $2,000
B) A primary residence (with an equity limit, often $713,000 in 2024, and intent to
return)
C) A second car
D) Stocks and bonds in a brokerage account
Correct Answer: B) A primary residence (with an equity limit, often $713,000 in
2024, and intent to return)
Explanation: The primary home is exempt if the applicant/community spouse lives
in it or intends to return, subject to an equity limit that is indexed annually. Other
exemptions include one vehicle, personal belongings, and certain burial funds.
9. A "Miller Trust" (also called a Qualified Income Trust or QIT) is used primarily
to:
A) Protect the primary home from estate recovery
B) Convert countable assets into non-countable assets
