CERTIFIED MEDICAID PLANNER (CMP) EXAM
STUDY GUIDE: 200 COMPLETE QUESTIONS WITH
DETAILED SOLUTIONS AND RATIONALES
1. Which federal agency is primarily responsible for overseeing the
administration of the Medicaid program?
A. Department of Veterans Affairs
B. Centers for Medicare & Medicaid Services
C. Social Security Administration
D. Department of Defense
Answer: B
Rationale: CMS oversees the administration of Medicaid at the federal
level, while states manage the day-to-day operations.
2. When determining Medicaid eligibility for a married couple, which
of the following is considered a countable resource?
A. The primary residence
B. One vehicle of any value
C. A second vacation home
D. Household furniture
Answer: C
Rationale: A second home is generally a countable resource, whereas
the primary residence is exempt.
3. What is the standard look-back period for Medicaid long-term care
applications to review asset transfers?
,A. 3 years
B. 5 years
C. 7 years
D. 10 years
Answer: B
Rationale: Federal law requires a 5-year look-back period for all asset
transfers prior to applying for long-term care Medicaid.
4. Which type of trust is specifically designed to hold excess income
for a Medicaid applicant to qualify for long-term care in an income-
cap state?
A. Revocable living trust
B. Qualified Income Trust (Miller Trust)
C. Special Needs Trust
D. Charitable Remainder Trust
Answer: B
Rationale: A Qualified Income Trust (QIT) is used to divert excess
income to meet Medicaid's income cap.
5. What does the Community Spouse Resource Allowance (CSRA)
protect?
A. The institutionalized spouse's income
B. The community spouse's share of assets
C. The community spouse's burial fund
D. The institutionalized spouse's vehicle
Answer: B
Rationale: The CSRA allows the community spouse to retain a certain
portion of the couple's countable assets.
,6. Which of the following best describes the Medicaid spend-down
process?
A. Transferring assets to a trust
B. Paying off all debts before applying
C. Incurring medical expenses to reduce countable assets to the
eligibility limit
D. Giving away assets to family members
Answer: C
Rationale: Spend-down allows applicants to deduct incurred medical
expenses from their countable assets to meet the state's eligibility
threshold.
7. Under Medicaid rules, which of the following is considered an
exempt resource?
A. A prepaid burial contract of any value
B. Cash value of a life insurance policy over $1,500
C. A vacation property
D. A second vehicle
Answer: A
Rationale: Prepaid burial contracts are generally considered exempt
resources if they are irrevocable and within state limits.
8. What is the primary distinction between Medicare and Medicaid?
A. Medicare is need-based, while Medicaid is age-based
B. Medicare is federally funded, while Medicaid is state-funded
C. Medicare is health insurance for those 65+ or disabled, while
Medicaid is need-based health coverage
D. Medicare covers long-term custodial care, while Medicaid does not
Answer: C
Rationale: Medicare is a federal health insurance program based on age
, or disability, whereas Medicaid is a means-tested program for low-
income individuals.
9. Which of the following is a requirement for a Medicaid-compliant
annuity?
A. It must be revocable
B. It must be variable rate
C. It must be actuarially sound and irrevocable
D. It must name the state as the primary beneficiary
Answer: C
Rationale: To be Medicaid-compliant, an annuity must be irrevocable,
actuarially sound, and provide equal monthly payments.
10. What is the primary purpose of Estate Recovery in the Medicaid
program?
A. To recover funds from the estates of deceased Medicaid recipients
for long-term care costs
B. To recover funds from the estates of deceased Medicare recipients
C. To seize assets from the community spouse
D. To pay for funeral expenses
Answer: A
Rationale: Estate recovery allows states to recoup the costs of long-term
care and related medical services from the estate of a deceased
Medicaid recipient.
11. Which of the following asset transfers would result in a Medicaid
penalty period?
A. Transferring the primary residence to a caregiver child who lived
there for two years
B. Transferring assets to a spouse
STUDY GUIDE: 200 COMPLETE QUESTIONS WITH
DETAILED SOLUTIONS AND RATIONALES
1. Which federal agency is primarily responsible for overseeing the
administration of the Medicaid program?
A. Department of Veterans Affairs
B. Centers for Medicare & Medicaid Services
C. Social Security Administration
D. Department of Defense
Answer: B
Rationale: CMS oversees the administration of Medicaid at the federal
level, while states manage the day-to-day operations.
2. When determining Medicaid eligibility for a married couple, which
of the following is considered a countable resource?
A. The primary residence
B. One vehicle of any value
C. A second vacation home
D. Household furniture
Answer: C
Rationale: A second home is generally a countable resource, whereas
the primary residence is exempt.
3. What is the standard look-back period for Medicaid long-term care
applications to review asset transfers?
,A. 3 years
B. 5 years
C. 7 years
D. 10 years
Answer: B
Rationale: Federal law requires a 5-year look-back period for all asset
transfers prior to applying for long-term care Medicaid.
4. Which type of trust is specifically designed to hold excess income
for a Medicaid applicant to qualify for long-term care in an income-
cap state?
A. Revocable living trust
B. Qualified Income Trust (Miller Trust)
C. Special Needs Trust
D. Charitable Remainder Trust
Answer: B
Rationale: A Qualified Income Trust (QIT) is used to divert excess
income to meet Medicaid's income cap.
5. What does the Community Spouse Resource Allowance (CSRA)
protect?
A. The institutionalized spouse's income
B. The community spouse's share of assets
C. The community spouse's burial fund
D. The institutionalized spouse's vehicle
Answer: B
Rationale: The CSRA allows the community spouse to retain a certain
portion of the couple's countable assets.
,6. Which of the following best describes the Medicaid spend-down
process?
A. Transferring assets to a trust
B. Paying off all debts before applying
C. Incurring medical expenses to reduce countable assets to the
eligibility limit
D. Giving away assets to family members
Answer: C
Rationale: Spend-down allows applicants to deduct incurred medical
expenses from their countable assets to meet the state's eligibility
threshold.
7. Under Medicaid rules, which of the following is considered an
exempt resource?
A. A prepaid burial contract of any value
B. Cash value of a life insurance policy over $1,500
C. A vacation property
D. A second vehicle
Answer: A
Rationale: Prepaid burial contracts are generally considered exempt
resources if they are irrevocable and within state limits.
8. What is the primary distinction between Medicare and Medicaid?
A. Medicare is need-based, while Medicaid is age-based
B. Medicare is federally funded, while Medicaid is state-funded
C. Medicare is health insurance for those 65+ or disabled, while
Medicaid is need-based health coverage
D. Medicare covers long-term custodial care, while Medicaid does not
Answer: C
Rationale: Medicare is a federal health insurance program based on age
, or disability, whereas Medicaid is a means-tested program for low-
income individuals.
9. Which of the following is a requirement for a Medicaid-compliant
annuity?
A. It must be revocable
B. It must be variable rate
C. It must be actuarially sound and irrevocable
D. It must name the state as the primary beneficiary
Answer: C
Rationale: To be Medicaid-compliant, an annuity must be irrevocable,
actuarially sound, and provide equal monthly payments.
10. What is the primary purpose of Estate Recovery in the Medicaid
program?
A. To recover funds from the estates of deceased Medicaid recipients
for long-term care costs
B. To recover funds from the estates of deceased Medicare recipients
C. To seize assets from the community spouse
D. To pay for funeral expenses
Answer: A
Rationale: Estate recovery allows states to recoup the costs of long-term
care and related medical services from the estate of a deceased
Medicaid recipient.
11. Which of the following asset transfers would result in a Medicaid
penalty period?
A. Transferring the primary residence to a caregiver child who lived
there for two years
B. Transferring assets to a spouse
