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Certified Medicaid Planner (CMP™) Exam
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES LATEST THIS YEAR
Certified Medicaid Planner (CMP™) Exam –Practice Questions
10 Most Tested Exam Coverage Areas
1. Medicaid Eligibility Criteria (Income & Asset Limits) – Countable vs. non-countable income,
individual asset limits ($2,000 typically), exempt assets (primary residence, one vehicle, burial
funds), the "look-back period" (60 months), and transfer penalties
2. Spousal Impoverishment Rules (CSRA & MMMNA) – Community Spouse Resource Allowance
(CSRA), Minimum Monthly Maintenance Needs Allowance (MMMNA), the "snapshot date,"
family allowance, and excess shelter allowance
3. Asset Protection Strategies – Medicaid Asset Protection Trusts (MAPTs), irrevocable trusts, life
estates, gifting strategies, and converting countable assets into exempt resources
4. Medicaid Planning Strategies – Spend-down techniques, Qualified Income Trusts (Miller Trusts)
for income-cap states, caregiver agreements, and pre-paid funeral contracts
5. Annuities & Promissory Notes in Medicaid Planning – Medicaid-compliant annuities
(irrevocable, non-assignable, actuarially sound), naming the state as remainder beneficiary, and
converting assets into income streams
6. Trusts in Medicaid Planning – Revocable vs. irrevocable trusts, First-Party Special Needs Trusts
(d4A trusts), Pooled Trusts (d4C), Third-Party Special Needs Trusts, and MAPTs
7. Income Eligibility & Treatment – Categorically needy vs. medically needy, MAGI vs. non-MAGI
income rules, "Income-First" vs. "Resource-First" states, patient pay obligations (PETI)
8. Application Process & Advocacy – Documentation requirements, Authorized Representative
role, common denial reasons, appeals process, redetermination, and recertification
9. Homestead & Real Property Planning – Primary residence exemption, equity limits, transfer
rules, caregiver children exceptions, life estates, and the "intent to return home" rule
10. Estate Recovery & Post-Eligibility Issues – Medicaid Estate Recovery Program (MERP), avoiding
estate recovery, hardship waivers, and post-eligibility treatment of income
Question 1: According to the Certified Medicaid Planner Governing Board's Job Analysis Report, which
topic area carries the highest weight on the 160-question CMP™ examination?
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A. General Asset-Eligibility Rules
B. Asset Eligibility Strategies
C. Income Eligibility
D. Annuities and Promissory Notes
Correct Answer: C
Rationale: Income Eligibility has the highest weight at 17 questions, followed by Asset Eligibility
Strategies and Annuities/Promissory Notes at 16 each, and General Asset-Eligibility Rules at 13.
Understanding income eligibility rules is critical for the exam as income often has more restrictive
requirements than assets .
Question 2: Which federal statute provides the primary authority for the Medicaid program,
establishing it as a joint federal-state program?
A. Title XVIII of the Social Security Act (Medicare)
B. Title XIX of the Social Security Act
C. The Affordable Care Act
D. The Deficit Reduction Act of 2005
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Correct Answer: B
Rationale: Title XIX of the Social Security Act, enacted in 1965, creates and authorizes the Medicaid
program. It establishes the federal framework for this joint state-federal healthcare program, setting
broad guidelines while allowing states to administer their own programs within those guidelines .
Question 3: A 72-year-old client enters a nursing home and has $180,000 in countable assets. The
state's Community Spouse Resource Allowance (CSRA) maximum is $148,620. What is the minimum
amount the client must spend down before Medicaid eligibility?
A. $0—all assets protected for the community spouse
B. $31,380
C. $148,620
D. $180,000
Correct Answer: B
Rationale: The institutionalized spouse may transfer up to the CSRA maximum ($148,620) to the
community spouse. Any amount above that must be spent down to reach the individual asset limit.
$180,000 - $148,620 = $31,380. The remaining assets after transferring the CSRA to the community
spouse must be reduced to the state's individual asset limit (typically $2,000) .
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Question 4: What is the typical countable asset limit for an individual applying for Medicaid long-term
care?
A. $1,000
B. $2,000
C. $5,000
D. $10,000
Correct Answer: B
Rationale: The typical countable asset limit for an individual applying for Medicaid long-term care is
$2,000, though this may vary slightly by state. Some states allow up to $5,000 for a single applicant. The
asset limit is a fundamental concept tested on the CMP exam .
Question 5: A client owns a primary residence valued at $450,000 in a state with a home equity limit of
$688,000. The client intends to return home after nursing home care. How is this property treated for
Medicaid eligibility?
A. Fully countable asset—must be sold
B. Exempt as long as the client intends to return home
Certified Medicaid Planner (CMP™) Exam
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES LATEST THIS YEAR
Certified Medicaid Planner (CMP™) Exam –Practice Questions
10 Most Tested Exam Coverage Areas
1. Medicaid Eligibility Criteria (Income & Asset Limits) – Countable vs. non-countable income,
individual asset limits ($2,000 typically), exempt assets (primary residence, one vehicle, burial
funds), the "look-back period" (60 months), and transfer penalties
2. Spousal Impoverishment Rules (CSRA & MMMNA) – Community Spouse Resource Allowance
(CSRA), Minimum Monthly Maintenance Needs Allowance (MMMNA), the "snapshot date,"
family allowance, and excess shelter allowance
3. Asset Protection Strategies – Medicaid Asset Protection Trusts (MAPTs), irrevocable trusts, life
estates, gifting strategies, and converting countable assets into exempt resources
4. Medicaid Planning Strategies – Spend-down techniques, Qualified Income Trusts (Miller Trusts)
for income-cap states, caregiver agreements, and pre-paid funeral contracts
5. Annuities & Promissory Notes in Medicaid Planning – Medicaid-compliant annuities
(irrevocable, non-assignable, actuarially sound), naming the state as remainder beneficiary, and
converting assets into income streams
6. Trusts in Medicaid Planning – Revocable vs. irrevocable trusts, First-Party Special Needs Trusts
(d4A trusts), Pooled Trusts (d4C), Third-Party Special Needs Trusts, and MAPTs
7. Income Eligibility & Treatment – Categorically needy vs. medically needy, MAGI vs. non-MAGI
income rules, "Income-First" vs. "Resource-First" states, patient pay obligations (PETI)
8. Application Process & Advocacy – Documentation requirements, Authorized Representative
role, common denial reasons, appeals process, redetermination, and recertification
9. Homestead & Real Property Planning – Primary residence exemption, equity limits, transfer
rules, caregiver children exceptions, life estates, and the "intent to return home" rule
10. Estate Recovery & Post-Eligibility Issues – Medicaid Estate Recovery Program (MERP), avoiding
estate recovery, hardship waivers, and post-eligibility treatment of income
Question 1: According to the Certified Medicaid Planner Governing Board's Job Analysis Report, which
topic area carries the highest weight on the 160-question CMP™ examination?
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A. General Asset-Eligibility Rules
B. Asset Eligibility Strategies
C. Income Eligibility
D. Annuities and Promissory Notes
Correct Answer: C
Rationale: Income Eligibility has the highest weight at 17 questions, followed by Asset Eligibility
Strategies and Annuities/Promissory Notes at 16 each, and General Asset-Eligibility Rules at 13.
Understanding income eligibility rules is critical for the exam as income often has more restrictive
requirements than assets .
Question 2: Which federal statute provides the primary authority for the Medicaid program,
establishing it as a joint federal-state program?
A. Title XVIII of the Social Security Act (Medicare)
B. Title XIX of the Social Security Act
C. The Affordable Care Act
D. The Deficit Reduction Act of 2005
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Correct Answer: B
Rationale: Title XIX of the Social Security Act, enacted in 1965, creates and authorizes the Medicaid
program. It establishes the federal framework for this joint state-federal healthcare program, setting
broad guidelines while allowing states to administer their own programs within those guidelines .
Question 3: A 72-year-old client enters a nursing home and has $180,000 in countable assets. The
state's Community Spouse Resource Allowance (CSRA) maximum is $148,620. What is the minimum
amount the client must spend down before Medicaid eligibility?
A. $0—all assets protected for the community spouse
B. $31,380
C. $148,620
D. $180,000
Correct Answer: B
Rationale: The institutionalized spouse may transfer up to the CSRA maximum ($148,620) to the
community spouse. Any amount above that must be spent down to reach the individual asset limit.
$180,000 - $148,620 = $31,380. The remaining assets after transferring the CSRA to the community
spouse must be reduced to the state's individual asset limit (typically $2,000) .
, Page 4 of 123
Question 4: What is the typical countable asset limit for an individual applying for Medicaid long-term
care?
A. $1,000
B. $2,000
C. $5,000
D. $10,000
Correct Answer: B
Rationale: The typical countable asset limit for an individual applying for Medicaid long-term care is
$2,000, though this may vary slightly by state. Some states allow up to $5,000 for a single applicant. The
asset limit is a fundamental concept tested on the CMP exam .
Question 5: A client owns a primary residence valued at $450,000 in a state with a home equity limit of
$688,000. The client intends to return home after nursing home care. How is this property treated for
Medicaid eligibility?
A. Fully countable asset—must be sold
B. Exempt as long as the client intends to return home
