CERTIFIED MEDICAID PLANNER (CMP™) EXAMINATION
2026/2027/2028 Testing Cycle | Newly Released
160 Q & A with Expert, Verified Rationales.
Guaranteed Pass | Graded A+ | Complete Guide
Q1: Under which federal statute was the Medicaid program originally established?
A. Title XVIII of the Social Security Act
B. Title XIX of the Social Security Act
C. Title XXI of the Social Security Act
D. The Affordable Care Act of 2010
Correct Answer: B
Rationale: Correct because Medicaid was established under Title XIX of the Social Security Act
of 1965 as a federal-state partnership program providing health coverage to eligible low-income
individuals. Title XVIII established Medicare, not Medicaid, while Title XXI created the State
Children's Health Insurance Program (SCHIP). The Affordable Care Act expanded Medicaid
eligibility but did not create the original program.
Q2: A 72-year-old widow has countable assets of $75,000 and requires nursing home care. Her
state allows a $2,000 individual asset limit. She establishes an irrevocable Medicaid Asset
Protection Trust and transfers her home into it. If she applies for Medicaid 3 years later, what is
the likely outcome?
A. The transfer is exempt because it was to an irrevocable trust
B. The home is protected because the 5-year look-back period has expired
C. A transfer penalty will be imposed because the look-back period is 5 years
D. The home is automatically protected because she retained a life estate
Correct Answer: C
,Rationale: Correct because under the Deficit Reduction Act of 2005, transfers to irrevocable
trusts trigger the 5-year look-back period, and applying after only 3 years results in a penalty
period of Medicaid ineligibility calculated by dividing the uncompensated transfer value by the
state's average private pay nursing home rate. The transfer is not exempt solely because it went
to an irrevocable trust, and retaining a life estate would make the asset countable. The penalty
period begins when the applicant is otherwise eligible for Medicaid, not on the date of transfer.
Q3: Which of the following is a mandatory Medicaid benefit under federal law?
A. Nursing facility services for individuals age 21 and older
B. Prescription drug coverage
C. Dental services for adults
D. Physical therapy services
Correct Answer: A
Rationale: Correct because nursing facility services for individuals age 21 and older is a
mandatory benefit that all state Medicaid programs must provide under Title XIX, whereas
prescription drugs, dental services for adults, and physical therapy are classified as optional
benefits that states may choose to cover. The distinction between mandatory and optional
benefits is critical for Medicaid planning because optional services vary significantly by state
and may be subject to budget-driven reductions.
Q4: A client establishes an irrevocable trust naming her daughter as trustee and her
grandchildren as beneficiaries, with no retained interest or power. The trust is properly funded
with $500,000 in securities. Five years and three months later, the client applies for Medicaid
nursing home benefits. How will the trust assets be treated?
A. Counted as available resources because the client created the trust
B. Subject to a 3-year look-back penalty
C. Counted because the client named the trustee
D. Excluded from countable assets because the look-back period has expired
Correct Answer: D
Rationale: Correct because assets transferred to a properly structured irrevocable trust in which
the grantor retains no interest or control are excluded from Medicaid countable resources once
the 5-year look-back period has expired, meaning the transfer occurred more than 60 months
before the Medicaid application date. The Deficit Reduction Act of 2005 established the 60-
month look-back for trust transfers, and because this transfer occurred 63 months prior to
application, no penalty applies. Retaining the power to name a trustee does not constitute a
,retained interest that makes trust assets countable if the grantor cannot revoke the trust or access
principal.
Q5: Under federal Medicaid spousal impoverishment rules, what is the purpose of the
Community Spouse Resource Allowance (CSRA)?
A. To require the community spouse to spend all assets on the institutionalized spouse's care
B. To allow the state to recover all assets from the community spouse after death
C. To permit the community spouse to retain a specified amount of countable assets
D. To eliminate the income allowance for the community spouse
Correct Answer: C
Rationale: Correct because the Community Spouse Resource Allowance (CSRA) is a federal
protection that permits the non-institutionalized spouse to retain a specified amount of the
couple's countable assets, ranging from a federal minimum of $27,480 to a maximum that is
adjusted annually, without affecting the institutionalized spouse's Medicaid eligibility. This
provision prevents total impoverishment of the community spouse who continues to live in the
community while the other spouse receives long-term care services. Estate recovery provisions
apply to the Medicaid recipient's estate, not the community spouse's retained assets.
Q6: A 65-year-old disabled individual with $800 in monthly income wants to qualify for
Medicaid, but the income limit in his state is $600 per month. Which trust structure allows him
to become income-eligible?
A. Revocable living trust
B. Qualified Income Trust (Miller Trust)
C. Irrevocable Medicaid Asset Protection Trust
D. Pooled Special Needs Trust
Correct Answer: B
Rationale: Correct because a Qualified Income Trust, commonly known as a Miller Trust,
allows individuals whose income exceeds the Medicaid limit to deposit the excess income into
an irrevocable trust, making the income not countable for eligibility purposes while the trust
income is used to pay a personal needs allowance and medical cost share. The trust must name
the state as primary beneficiary for amounts remaining at the individual's death up to the extent
of Medicaid benefits provided. A revocable trust would not protect income, a MAPT addresses
assets rather than income, and a pooled trust is designed for disabled individuals under age 65 to
protect assets, not income.
, Q7: For Medicaid estate recovery purposes, which of the following is an exception to mandatory
recovery?
A. The deceased recipient was over age 55
B. The deceased recipient owned a primary residence with equity exceeding $1,000,000
C. The deceased recipient is survived by a spouse
D. The deceased recipient received only physician services
Correct Answer: D
Rationale: Correct because federal law requires states to attempt recovery from the estates of
deceased Medicaid recipients for services provided after age 55, but recovery is prohibited when
the recipient is survived by a spouse, a child under age 21, or a blind or disabled child of any
age. The primary residence equity limit affects countable asset determinations during life but
does not create an exception to estate recovery after death. Recovery applies to nursing facility
services, home and community-based services, and related hospital and prescription drug costs,
not just physician services.
Q8: A client purchases an immediate annuity with a $100,000 premium to help a spouse qualify
for Medicaid. To be Medicaid-compliant under the Deficit Reduction Act of 2005, the annuity
must:
A. Name the state as primary remainder beneficiary for at least the amount of Medicaid benefits
paid
B. Allow the annuitant to withdraw the remaining lump sum at any time
C. Provide balloon payments at the end of the payout period
D. Be revocable and assignable by the annuitant
Correct Answer: A
Rationale: Correct because the Deficit Reduction Act of 2005 requires that Medicaid-compliant
annuities name the state as the primary remainder beneficiary for at least the amount of Medicaid
benefits paid on behalf of the annuitant, ensuring that the state can recover funds if the annuitant
dies before the annuity is fully paid out. The annuity must also be actuarially sound, pay equal
periodic payments over the annuitant's life expectancy, and be irrevocable and non-assignable.
Balloon payments and revocability violate DRA requirements and would cause the annuity to be
treated as a countable asset or trigger transfer penalties.
2026/2027/2028 Testing Cycle | Newly Released
160 Q & A with Expert, Verified Rationales.
Guaranteed Pass | Graded A+ | Complete Guide
Q1: Under which federal statute was the Medicaid program originally established?
A. Title XVIII of the Social Security Act
B. Title XIX of the Social Security Act
C. Title XXI of the Social Security Act
D. The Affordable Care Act of 2010
Correct Answer: B
Rationale: Correct because Medicaid was established under Title XIX of the Social Security Act
of 1965 as a federal-state partnership program providing health coverage to eligible low-income
individuals. Title XVIII established Medicare, not Medicaid, while Title XXI created the State
Children's Health Insurance Program (SCHIP). The Affordable Care Act expanded Medicaid
eligibility but did not create the original program.
Q2: A 72-year-old widow has countable assets of $75,000 and requires nursing home care. Her
state allows a $2,000 individual asset limit. She establishes an irrevocable Medicaid Asset
Protection Trust and transfers her home into it. If she applies for Medicaid 3 years later, what is
the likely outcome?
A. The transfer is exempt because it was to an irrevocable trust
B. The home is protected because the 5-year look-back period has expired
C. A transfer penalty will be imposed because the look-back period is 5 years
D. The home is automatically protected because she retained a life estate
Correct Answer: C
,Rationale: Correct because under the Deficit Reduction Act of 2005, transfers to irrevocable
trusts trigger the 5-year look-back period, and applying after only 3 years results in a penalty
period of Medicaid ineligibility calculated by dividing the uncompensated transfer value by the
state's average private pay nursing home rate. The transfer is not exempt solely because it went
to an irrevocable trust, and retaining a life estate would make the asset countable. The penalty
period begins when the applicant is otherwise eligible for Medicaid, not on the date of transfer.
Q3: Which of the following is a mandatory Medicaid benefit under federal law?
A. Nursing facility services for individuals age 21 and older
B. Prescription drug coverage
C. Dental services for adults
D. Physical therapy services
Correct Answer: A
Rationale: Correct because nursing facility services for individuals age 21 and older is a
mandatory benefit that all state Medicaid programs must provide under Title XIX, whereas
prescription drugs, dental services for adults, and physical therapy are classified as optional
benefits that states may choose to cover. The distinction between mandatory and optional
benefits is critical for Medicaid planning because optional services vary significantly by state
and may be subject to budget-driven reductions.
Q4: A client establishes an irrevocable trust naming her daughter as trustee and her
grandchildren as beneficiaries, with no retained interest or power. The trust is properly funded
with $500,000 in securities. Five years and three months later, the client applies for Medicaid
nursing home benefits. How will the trust assets be treated?
A. Counted as available resources because the client created the trust
B. Subject to a 3-year look-back penalty
C. Counted because the client named the trustee
D. Excluded from countable assets because the look-back period has expired
Correct Answer: D
Rationale: Correct because assets transferred to a properly structured irrevocable trust in which
the grantor retains no interest or control are excluded from Medicaid countable resources once
the 5-year look-back period has expired, meaning the transfer occurred more than 60 months
before the Medicaid application date. The Deficit Reduction Act of 2005 established the 60-
month look-back for trust transfers, and because this transfer occurred 63 months prior to
application, no penalty applies. Retaining the power to name a trustee does not constitute a
,retained interest that makes trust assets countable if the grantor cannot revoke the trust or access
principal.
Q5: Under federal Medicaid spousal impoverishment rules, what is the purpose of the
Community Spouse Resource Allowance (CSRA)?
A. To require the community spouse to spend all assets on the institutionalized spouse's care
B. To allow the state to recover all assets from the community spouse after death
C. To permit the community spouse to retain a specified amount of countable assets
D. To eliminate the income allowance for the community spouse
Correct Answer: C
Rationale: Correct because the Community Spouse Resource Allowance (CSRA) is a federal
protection that permits the non-institutionalized spouse to retain a specified amount of the
couple's countable assets, ranging from a federal minimum of $27,480 to a maximum that is
adjusted annually, without affecting the institutionalized spouse's Medicaid eligibility. This
provision prevents total impoverishment of the community spouse who continues to live in the
community while the other spouse receives long-term care services. Estate recovery provisions
apply to the Medicaid recipient's estate, not the community spouse's retained assets.
Q6: A 65-year-old disabled individual with $800 in monthly income wants to qualify for
Medicaid, but the income limit in his state is $600 per month. Which trust structure allows him
to become income-eligible?
A. Revocable living trust
B. Qualified Income Trust (Miller Trust)
C. Irrevocable Medicaid Asset Protection Trust
D. Pooled Special Needs Trust
Correct Answer: B
Rationale: Correct because a Qualified Income Trust, commonly known as a Miller Trust,
allows individuals whose income exceeds the Medicaid limit to deposit the excess income into
an irrevocable trust, making the income not countable for eligibility purposes while the trust
income is used to pay a personal needs allowance and medical cost share. The trust must name
the state as primary beneficiary for amounts remaining at the individual's death up to the extent
of Medicaid benefits provided. A revocable trust would not protect income, a MAPT addresses
assets rather than income, and a pooled trust is designed for disabled individuals under age 65 to
protect assets, not income.
, Q7: For Medicaid estate recovery purposes, which of the following is an exception to mandatory
recovery?
A. The deceased recipient was over age 55
B. The deceased recipient owned a primary residence with equity exceeding $1,000,000
C. The deceased recipient is survived by a spouse
D. The deceased recipient received only physician services
Correct Answer: D
Rationale: Correct because federal law requires states to attempt recovery from the estates of
deceased Medicaid recipients for services provided after age 55, but recovery is prohibited when
the recipient is survived by a spouse, a child under age 21, or a blind or disabled child of any
age. The primary residence equity limit affects countable asset determinations during life but
does not create an exception to estate recovery after death. Recovery applies to nursing facility
services, home and community-based services, and related hospital and prescription drug costs,
not just physician services.
Q8: A client purchases an immediate annuity with a $100,000 premium to help a spouse qualify
for Medicaid. To be Medicaid-compliant under the Deficit Reduction Act of 2005, the annuity
must:
A. Name the state as primary remainder beneficiary for at least the amount of Medicaid benefits
paid
B. Allow the annuitant to withdraw the remaining lump sum at any time
C. Provide balloon payments at the end of the payout period
D. Be revocable and assignable by the annuitant
Correct Answer: A
Rationale: Correct because the Deficit Reduction Act of 2005 requires that Medicaid-compliant
annuities name the state as the primary remainder beneficiary for at least the amount of Medicaid
benefits paid on behalf of the annuitant, ensuring that the state can recover funds if the annuitant
dies before the annuity is fully paid out. The annuity must also be actuarially sound, pay equal
periodic payments over the annuitant's life expectancy, and be irrevocable and non-assignable.
Balloon payments and revocability violate DRA requirements and would cause the annuity to be
treated as a countable asset or trigger transfer penalties.
