CERTIFIED MEDICAID PLANNER (CMP™) EXAMINATION COMPLETE QUESTIONS AND
DETAILED SOLUTIONS LATEST UPDATE THIS YEAR JUST RELEASED
Question 1
Under the Deficit Reduction Act of 2005 (DRA), what is the mandatory look-back period for all
asset transfers made for less than fair market value?
A) 24 months
B) 36 months
C) 48 months
D) 60 months
E) 72 months
Correct Answer: D) 60 months
Rationale: The DRA 2005 standardized the look-back period to 60 months (5 years) for all
transfers to individuals or trusts, replacing the previous dual-track system of 36 or 60
months.
Question 2
Which of the following describes the "snapshot date" for a married couple when one spouse
enters a long-term care facility?
A) The date the Medicaid application is filed.
B) The first day of the month in which the applicant is determined eligible.
C) The date of the first continuous period of institutionalization of at least 30 days.
D) The date the applicant reached age 65.
E) The date the couple was legally married.
Correct Answer: C) The date of the first continuous period of institutionalization of at least
30 days.
Rationale: The snapshot date is used to determine the total value of the couple's countable
assets for the purpose of calculating the Community Spouse Resource Allowance (CSRA).
It occurs at the start of the first continuous 30-day stay in a hospital or nursing home.
Question 3
Which planning strategy is primarily used to address the "Income Cap" in states that do not allow
the "Medically Needy" spend-down for long-term care?
A) Special Needs Trust
B) Miller Trust (Qualified Income Trust)
C) Irrevocable Life Insurance Trust
D) Revocable Living Trust
E) Charitable Remainder Trust
Correct Answer: B) Miller Trust (Qualified Income Trust)
Rationale: In "Income Cap" states, individuals with income above the limit (usually 300%
of the SSI federal benefit rate) must use a Miller Trust to funnel their income. This allows
the income to be "ignored" for eligibility purposes while still being used to pay for the
patient's share of cost.
, 2
Question 4
A "Community Spouse" is entitled to keep a certain amount of income to prevent financial
hardship. What is the federal term for this minimum income floor?
A) CSRA
B) SNAP
C) MMMNA
D) QMB
E) SLMB
Correct Answer: C) MMMNA
Rationale: MMMNA stands for Minimum Monthly Maintenance Needs Allowance. If the
community spouse’s own income is below this level, they are entitled to a portion of the
institutionalized spouse’s income to reach this floor.
Question 5
When calculating a penalty period for a non-compensated transfer, when does the penalty period
generally begin?
A) The date the transfer was made.
B) The date the applicant entered the nursing home.
C) The date the applicant would otherwise be eligible for Medicaid but for the transfer.
D) One year after the application date.
E) Immediately upon the discovery of the transfer by the state.
Correct Answer: C) The date the applicant would otherwise be eligible for Medicaid but for
the transfer.
Rationale: Per the DRA 2005, the penalty period does not start until the applicant is
institutionalized, has applied for Medicaid, and is "otherwise eligible" (meaning they have
met the asset and income limits).
Question 6
Which of the following assets is generally considered "exempt" or "non-countable" for Medicaid
eligibility for a single applicant?
A) A secondary vacation home in another state.
B) A checking account with a balance of $5,000.
C) One automobile of any value used for the applicant’s transport.
D) A brokerage account used for retirement.
E) A whole life insurance policy with a face value of $25,000.
Correct Answer: C) One automobile of any value used for the applicant’s transport.
Rationale: Under federal guidelines, one vehicle used for the transportation of the applicant
or a member of their household is an excluded resource regardless of its equity value.
Question 7
What is the maximum amount of "Home Equity" an applicant can generally have while
, 3
remaining eligible for long-term care Medicaid (subject to state-specific inflation adjustments)?
A) $100,000
B) $250,000
C) $500,000 (standard) to approximately $1,033,000 (high-cost)
D) There is no limit on home equity.
E)
1,500,000𝐶𝑜𝑟𝑟𝑒𝑐𝑡𝐴𝑛𝑠𝑤𝑒𝑟: 𝐶) ∗∗
500,000 (standard) to approximately $1,033,000 (high-cost)**
Rationale: The DRA 2005 introduced a home equity cap for Medicaid eligibility. While the
home is an exempt asset, if the equity exceeds the state-mandated limit (which adjusts for
inflation), the applicant is ineligible unless a spouse or dependent child lives there.
Question 8
To be "DRA-compliant," a Medicaid-compliant annuity must meet several requirements. Which
of the following is one of those requirements?
A) The annuity must be revocable.
B) The annuity must have a balloon payment at the end.
C) The state must be named as the remainder beneficiary up to the amount of medical assistance
paid.
D) The annuity must be for a term of at least 20 years.
E) The annuity must be deferred for at least 5 years.
Correct Answer: C) The state must be named as the remainder beneficiary up to the amount
of medical assistance paid.
Rationale: To avoid being treated as an uncompensated transfer, an annuity must be
irrevocable, non-assignable, actuarially sound, and must name the state as the primary
remainder beneficiary (or secondary if there is a spouse or minor/disabled child).
Question 9
What is the "Community Spouse Resource Allowance" (CSRA)?
A) The amount of income the spouse at home is allowed to earn.
B) The amount of assets the spouse at home is allowed to retain.
C) The total value of the nursing home's bill.
D) The amount of equity allowed in a vacation home.
E) The monthly allowance provided by the state to the spouse at home.
Correct Answer: B) The amount of assets the spouse at home is allowed to retain.
Rationale: The CSRA is the portion of the couple's total countable resources that the
community spouse is permitted to keep to avoid "impoverishment" while the other spouse
receives Medicaid benefits.
, 4
Question 10
A "Caregiver Agreement" or "Personal Care Contract" is used to pay a family member for care.
To avoid a transfer penalty, what must be true?
A) The payment must be for future services only.
B) The payment must be for past services rendered for free.
C) The rate of pay must be substantially higher than the local market rate.
D) The agreement must be in writing and signed prior to the services being rendered.
E) The agreement must be verbal and witnessed by a neighbor.
Correct Answer: D) The agreement must be in writing and signed prior to the services being
rendered.
Rationale: To be recognized as a valid expense rather than a gift, there must be a written
contract, and payments must be at fair market value for services provided after the
contract is signed.
Question 11
Medicaid Estate Recovery (MERP) allows the state to seek reimbursement for costs paid.
Against which of the following is the state prohibited from recovering while they are alive?
A) The applicant's adult son who is wealthy.
B) A surviving spouse.
C) A sibling who never lived with the applicant.
D) A distant cousin.
E) A charitable organization the applicant supported.
Correct Answer: B) A surviving spouse.
Rationale: Federal law prohibits states from pursuing estate recovery if there is a surviving
spouse, a child under 21, or a blind/permanently disabled child of any age.
Question 12
What is the purpose of a "d4A" Special Needs Trust?
A) To hide assets from the IRS.
B) To allow a disabled individual under age 65 to protect assets while maintaining Medicaid
eligibility.
C) To bypass the 5-year look-back period for healthy individuals.
D) To pay for nursing home care directly.
E) To provide a life insurance benefit to the state.
Correct Answer: B) To allow a disabled individual under age 65 to protect assets while
maintaining Medicaid eligibility.
Rationale: A self-settled d4A trust (established under 42 U.S.C. § 1396p(d)(4)(A)) allows a
disabled person to remain eligible for Medicaid despite having excess assets, provided the
trust contains a "payback" provision to the state upon the beneficiary's death.
DETAILED SOLUTIONS LATEST UPDATE THIS YEAR JUST RELEASED
Question 1
Under the Deficit Reduction Act of 2005 (DRA), what is the mandatory look-back period for all
asset transfers made for less than fair market value?
A) 24 months
B) 36 months
C) 48 months
D) 60 months
E) 72 months
Correct Answer: D) 60 months
Rationale: The DRA 2005 standardized the look-back period to 60 months (5 years) for all
transfers to individuals or trusts, replacing the previous dual-track system of 36 or 60
months.
Question 2
Which of the following describes the "snapshot date" for a married couple when one spouse
enters a long-term care facility?
A) The date the Medicaid application is filed.
B) The first day of the month in which the applicant is determined eligible.
C) The date of the first continuous period of institutionalization of at least 30 days.
D) The date the applicant reached age 65.
E) The date the couple was legally married.
Correct Answer: C) The date of the first continuous period of institutionalization of at least
30 days.
Rationale: The snapshot date is used to determine the total value of the couple's countable
assets for the purpose of calculating the Community Spouse Resource Allowance (CSRA).
It occurs at the start of the first continuous 30-day stay in a hospital or nursing home.
Question 3
Which planning strategy is primarily used to address the "Income Cap" in states that do not allow
the "Medically Needy" spend-down for long-term care?
A) Special Needs Trust
B) Miller Trust (Qualified Income Trust)
C) Irrevocable Life Insurance Trust
D) Revocable Living Trust
E) Charitable Remainder Trust
Correct Answer: B) Miller Trust (Qualified Income Trust)
Rationale: In "Income Cap" states, individuals with income above the limit (usually 300%
of the SSI federal benefit rate) must use a Miller Trust to funnel their income. This allows
the income to be "ignored" for eligibility purposes while still being used to pay for the
patient's share of cost.
, 2
Question 4
A "Community Spouse" is entitled to keep a certain amount of income to prevent financial
hardship. What is the federal term for this minimum income floor?
A) CSRA
B) SNAP
C) MMMNA
D) QMB
E) SLMB
Correct Answer: C) MMMNA
Rationale: MMMNA stands for Minimum Monthly Maintenance Needs Allowance. If the
community spouse’s own income is below this level, they are entitled to a portion of the
institutionalized spouse’s income to reach this floor.
Question 5
When calculating a penalty period for a non-compensated transfer, when does the penalty period
generally begin?
A) The date the transfer was made.
B) The date the applicant entered the nursing home.
C) The date the applicant would otherwise be eligible for Medicaid but for the transfer.
D) One year after the application date.
E) Immediately upon the discovery of the transfer by the state.
Correct Answer: C) The date the applicant would otherwise be eligible for Medicaid but for
the transfer.
Rationale: Per the DRA 2005, the penalty period does not start until the applicant is
institutionalized, has applied for Medicaid, and is "otherwise eligible" (meaning they have
met the asset and income limits).
Question 6
Which of the following assets is generally considered "exempt" or "non-countable" for Medicaid
eligibility for a single applicant?
A) A secondary vacation home in another state.
B) A checking account with a balance of $5,000.
C) One automobile of any value used for the applicant’s transport.
D) A brokerage account used for retirement.
E) A whole life insurance policy with a face value of $25,000.
Correct Answer: C) One automobile of any value used for the applicant’s transport.
Rationale: Under federal guidelines, one vehicle used for the transportation of the applicant
or a member of their household is an excluded resource regardless of its equity value.
Question 7
What is the maximum amount of "Home Equity" an applicant can generally have while
, 3
remaining eligible for long-term care Medicaid (subject to state-specific inflation adjustments)?
A) $100,000
B) $250,000
C) $500,000 (standard) to approximately $1,033,000 (high-cost)
D) There is no limit on home equity.
E)
1,500,000𝐶𝑜𝑟𝑟𝑒𝑐𝑡𝐴𝑛𝑠𝑤𝑒𝑟: 𝐶) ∗∗
500,000 (standard) to approximately $1,033,000 (high-cost)**
Rationale: The DRA 2005 introduced a home equity cap for Medicaid eligibility. While the
home is an exempt asset, if the equity exceeds the state-mandated limit (which adjusts for
inflation), the applicant is ineligible unless a spouse or dependent child lives there.
Question 8
To be "DRA-compliant," a Medicaid-compliant annuity must meet several requirements. Which
of the following is one of those requirements?
A) The annuity must be revocable.
B) The annuity must have a balloon payment at the end.
C) The state must be named as the remainder beneficiary up to the amount of medical assistance
paid.
D) The annuity must be for a term of at least 20 years.
E) The annuity must be deferred for at least 5 years.
Correct Answer: C) The state must be named as the remainder beneficiary up to the amount
of medical assistance paid.
Rationale: To avoid being treated as an uncompensated transfer, an annuity must be
irrevocable, non-assignable, actuarially sound, and must name the state as the primary
remainder beneficiary (or secondary if there is a spouse or minor/disabled child).
Question 9
What is the "Community Spouse Resource Allowance" (CSRA)?
A) The amount of income the spouse at home is allowed to earn.
B) The amount of assets the spouse at home is allowed to retain.
C) The total value of the nursing home's bill.
D) The amount of equity allowed in a vacation home.
E) The monthly allowance provided by the state to the spouse at home.
Correct Answer: B) The amount of assets the spouse at home is allowed to retain.
Rationale: The CSRA is the portion of the couple's total countable resources that the
community spouse is permitted to keep to avoid "impoverishment" while the other spouse
receives Medicaid benefits.
, 4
Question 10
A "Caregiver Agreement" or "Personal Care Contract" is used to pay a family member for care.
To avoid a transfer penalty, what must be true?
A) The payment must be for future services only.
B) The payment must be for past services rendered for free.
C) The rate of pay must be substantially higher than the local market rate.
D) The agreement must be in writing and signed prior to the services being rendered.
E) The agreement must be verbal and witnessed by a neighbor.
Correct Answer: D) The agreement must be in writing and signed prior to the services being
rendered.
Rationale: To be recognized as a valid expense rather than a gift, there must be a written
contract, and payments must be at fair market value for services provided after the
contract is signed.
Question 11
Medicaid Estate Recovery (MERP) allows the state to seek reimbursement for costs paid.
Against which of the following is the state prohibited from recovering while they are alive?
A) The applicant's adult son who is wealthy.
B) A surviving spouse.
C) A sibling who never lived with the applicant.
D) A distant cousin.
E) A charitable organization the applicant supported.
Correct Answer: B) A surviving spouse.
Rationale: Federal law prohibits states from pursuing estate recovery if there is a surviving
spouse, a child under 21, or a blind/permanently disabled child of any age.
Question 12
What is the purpose of a "d4A" Special Needs Trust?
A) To hide assets from the IRS.
B) To allow a disabled individual under age 65 to protect assets while maintaining Medicaid
eligibility.
C) To bypass the 5-year look-back period for healthy individuals.
D) To pay for nursing home care directly.
E) To provide a life insurance benefit to the state.
Correct Answer: B) To allow a disabled individual under age 65 to protect assets while
maintaining Medicaid eligibility.
Rationale: A self-settled d4A trust (established under 42 U.S.C. § 1396p(d)(4)(A)) allows a
disabled person to remain eligible for Medicaid despite having excess assets, provided the
trust contains a "payback" provision to the state upon the beneficiary's death.
