CERTIFIED MEDICAID PLANNER (CMP™) EXAMINATION
200 EXAM QUESTIONS WITH DETAILED RATIONALES
Question 1
Which of the following best describes the term "medically needy" in
Medicaid?
A) Individuals who are terminally ill
B) Individuals whose income exceeds categorically needy limits but who
can spend down to qualify
C) Individuals who require nursing home care
D) Individuals who are enrolled in Medicare
Correct Answer: B
Rationale: The medically needy category allows individuals whose
income exceeds the categorically needy threshold to qualify for
Medicaid by incurring medical expenses that reduce their available
income to the state's medically needy income level. This is also known
as the spend-down program and is optional for states.
Question 2
What is the primary purpose of a Medicaid "spend-down" calculation?
A) To determine how much an applicant must pay toward their own
care before Medicaid begins coverage
B) To determine the total assets a Medicaid recipient can retain
,C) To calculate the community spouse's resource allowance
D) To determine the penalty period for asset transfers
Correct Answer: A
Rationale: The spend-down calculation determines the amount of
medical expenses an applicant must incur before Medicaid coverage
begins. This applies in medically needy states where applicants with
income above the categorically needy limit can qualify by reducing their
available income through incurred medical expenses.
Question 3
Which federal law introduced the requirement that states must seek
recovery from the estates of deceased Medicaid recipients?
A) The Social Security Act of 1965
B) The Omnibus Budget Reconciliation Act of 1993
C) The Medicare Prescription Drug, Improvement, and Modernization
Act of 2003
D) The Affordable Care Act of 2010
Correct Answer: B
Rationale: OBRA 1993 mandated that all states implement Medicaid
Estate Recovery Programs (MERP) to recover the costs of long-term care
and related services from the estates of deceased Medicaid recipients
aged 55 and older. This was a significant change that expanded the
scope of estate recovery.
,Question 4
A Medicaid applicant transfers $60,000 to their adult child 30 months
before applying for Medicaid. The state's average monthly nursing
home rate is $6,000. What is the penalty period?
A) 10 months
B) 12 months
C) 6 months
D) 5 months
Correct Answer: A
Rationale: The penalty period is calculated by dividing the total
uncompensated transfer amount by the state's average monthly
private-pay rate for nursing facility care. $60,000 divided by $6,000
equals 10 months. The penalty period begins on the date of the
Medicaid application or the date the individual would otherwise be
eligible for benefits.
Question 5
Which of the following trusts is designed to allow a Medicaid applicant
with excess income to qualify for benefits in an income cap state?
A) Special Needs Trust
B) Qualified Income Trust
C) Third-Party Trust
D) Pooled Trust
Correct Answer: B
, Rationale: A Qualified Income Trust (QIT), also known as a Miller Trust,
is used in income cap states to allow Medicaid applicants with income
above the state's categorically needy limit to qualify for Medicaid. The
excess income is deposited into the trust and used to pay for the
applicant's care.
Question 6
What is the term used to describe the spouse who remains living in the
community while the other spouse receives Medicaid long-term care
benefits?
A) Institutionalized spouse
B) Community spouse
C) Medicaid spouse
D) Dependent spouse
Correct Answer: B
Rationale: The community spouse is the spouse who remains living in
the community (at home or elsewhere) while the other spouse (the
institutionalized spouse) enters a nursing facility or receives long-term
care services. The community spouse is entitled to spousal
impoverishment protections under federal law.
Question 7
Which of the following is considered an exempt resource for Medicaid
eligibility purposes?
200 EXAM QUESTIONS WITH DETAILED RATIONALES
Question 1
Which of the following best describes the term "medically needy" in
Medicaid?
A) Individuals who are terminally ill
B) Individuals whose income exceeds categorically needy limits but who
can spend down to qualify
C) Individuals who require nursing home care
D) Individuals who are enrolled in Medicare
Correct Answer: B
Rationale: The medically needy category allows individuals whose
income exceeds the categorically needy threshold to qualify for
Medicaid by incurring medical expenses that reduce their available
income to the state's medically needy income level. This is also known
as the spend-down program and is optional for states.
Question 2
What is the primary purpose of a Medicaid "spend-down" calculation?
A) To determine how much an applicant must pay toward their own
care before Medicaid begins coverage
B) To determine the total assets a Medicaid recipient can retain
,C) To calculate the community spouse's resource allowance
D) To determine the penalty period for asset transfers
Correct Answer: A
Rationale: The spend-down calculation determines the amount of
medical expenses an applicant must incur before Medicaid coverage
begins. This applies in medically needy states where applicants with
income above the categorically needy limit can qualify by reducing their
available income through incurred medical expenses.
Question 3
Which federal law introduced the requirement that states must seek
recovery from the estates of deceased Medicaid recipients?
A) The Social Security Act of 1965
B) The Omnibus Budget Reconciliation Act of 1993
C) The Medicare Prescription Drug, Improvement, and Modernization
Act of 2003
D) The Affordable Care Act of 2010
Correct Answer: B
Rationale: OBRA 1993 mandated that all states implement Medicaid
Estate Recovery Programs (MERP) to recover the costs of long-term care
and related services from the estates of deceased Medicaid recipients
aged 55 and older. This was a significant change that expanded the
scope of estate recovery.
,Question 4
A Medicaid applicant transfers $60,000 to their adult child 30 months
before applying for Medicaid. The state's average monthly nursing
home rate is $6,000. What is the penalty period?
A) 10 months
B) 12 months
C) 6 months
D) 5 months
Correct Answer: A
Rationale: The penalty period is calculated by dividing the total
uncompensated transfer amount by the state's average monthly
private-pay rate for nursing facility care. $60,000 divided by $6,000
equals 10 months. The penalty period begins on the date of the
Medicaid application or the date the individual would otherwise be
eligible for benefits.
Question 5
Which of the following trusts is designed to allow a Medicaid applicant
with excess income to qualify for benefits in an income cap state?
A) Special Needs Trust
B) Qualified Income Trust
C) Third-Party Trust
D) Pooled Trust
Correct Answer: B
, Rationale: A Qualified Income Trust (QIT), also known as a Miller Trust,
is used in income cap states to allow Medicaid applicants with income
above the state's categorically needy limit to qualify for Medicaid. The
excess income is deposited into the trust and used to pay for the
applicant's care.
Question 6
What is the term used to describe the spouse who remains living in the
community while the other spouse receives Medicaid long-term care
benefits?
A) Institutionalized spouse
B) Community spouse
C) Medicaid spouse
D) Dependent spouse
Correct Answer: B
Rationale: The community spouse is the spouse who remains living in
the community (at home or elsewhere) while the other spouse (the
institutionalized spouse) enters a nursing facility or receives long-term
care services. The community spouse is entitled to spousal
impoverishment protections under federal law.
Question 7
Which of the following is considered an exempt resource for Medicaid
eligibility purposes?
