Understanding Wisconsin’s Medicaid Look-Back Period
The Wisconsin Medicaid look-back period is a key factor in qualifying for coverage. It reviews five years of financial activity to confirm assets were not transferred or sold for less than market value before applying. Refi Trust helps Wisconsin families navigate look-back with Medicaid-compliant spend-down strategies to protect savings and support asset protection planning.
What Is the Medicaid Look-Back Period in Wisconsin?
Wisconsin’s look-back period is a 5-year review of financial transactions before applying for Medicaid benefits. During this time, Medicaid examines asset transfers, gifts and sales to confirm they meet program rules. Any non-compliant transfers can delay benefits, leaving you responsible for care costs until the penalty ends. Refi Trust helps families prepare assets and plan transactions to comply with Wisconsin’s Medicaid guidelines.
How the 5-Year Look-Back Works
Transactions Medicaid Reviews
Medicaid reviews any transfer of money, property or assets within the past five years. This includes:
- Giving cash or property to family or friends
- Selling assets below fair market value
- Adding someone’s name to a property title without receiving payment
- Moving funds into certain types of trusts without meeting Medicaid’s exemption criteria
Penalties for Violations
If Medicaid finds a non-compliant transfer, it applies a penalty period based on the value of the transfer. In Wisconsin, the penalty divisor is $9,599.80 per month, meaning a $47,999 transfer would delay benefits for five months. During the penalty period, you must pay for your care out-of-pocket. Refi Trust helps clients use compliant strategies to prevent costly delays.
How Refi Trust Helps Protect Your Assets
Refi Trust provides Wisconsin families with clear, no-retainer guidance on avoiding Medicaid look-back penalties. Our team reviews your current assets, recommends compliant strategies and completes the necessary trust or policy conversions. With both in-person and virtual consultations, we make asset protection straightforward and accessible.
Exempt vs. Countable Asset Transfers
Exempt Transfers
Certain asset transfers are allowed under Wisconsin Medicaid rules without creating a penalty. Examples include:
- Transferring a primary home to a spouse or a child under qualifying conditions
- Funding a prepaid irrevocable funeral trust
- Keeping personal belongings and household goods
- Owning one vehicle, regardless of value
Countable Transfers
Other transfers can create a penalty if made within the look-back period. Examples include:
- Giving cash or property to individuals without receiving fair value
- Transferring investment accounts or retirement funds
- Selling real estate for less than market value
- Moving assets into a revocable trust
Refi Trust helps clients identify which assets qualify for exempt transfers and which could cause penalties, creating a plan aligned with Wisconsin Medicaid requirements.
How to Avoid Medicaid Look-Back Penalties in Wisconsin
Avoiding penalties during the Medicaid look-back period requires planning and the right asset strategies. Working with professionals who understand Wisconsin’s rules can help protect your eligibility and prevent unexpected care costs.
Common, compliant approaches include:
- Irrevocable Funeral Trusts: Protect up to $15,000 per person immediately with no look-back period, and up to $100,000 if established more than five years in advance.
- Life Insurance Conversion: Convert non-term life insurance with cash value into an irrevocable funeral trust, removing it from countable assets.
- Early Planning: Restructure assets and make allowable transfers well before submitting a Medicaid application.
Refi Trust guides clients through each option, tailoring solutions to individual situations while following Wisconsin Medicaid guidelines.
FAQs on the Wisconsin Medicaid Look-Back Period
How far back does Medicaid look in Wisconsin?
Medicaid in Wisconsin reviews financial transactions from the past 60 months, or five years, before the date of application for benefits.
What happens if you break the Medicaid look-back rule?
Breaking the rule can result in a penalty period where Medicaid will not pay for care. The penalty is calculated by dividing the value of the non-compliant transfer by Wisconsin’s monthly penalty divisor of $9,599.80.
How can I protect assets within the look-back period?
Use Medicaid-compliant strategies like irrevocable funeral trusts, life insurance conversion and approved transfers. Refi Trust helps select and implement the best options for Wisconsin applicants.
Protect Your Savings Today
Avoid costly penalties during the Medicaid look-back period by planning ahead with the right strategies. Refi Trust works with Wisconsin seniors and their families to prepare assets, guide transfers and meet program rules with confidence. Contact us today for a free, no-obligation consultation.
Secure Your Future Today Call 414-244-9444
Refi Trust is located at 1200 N Mayfair Rd, Wauwatosa, WI 53226. We provide Medicaid planning and asset protection services across Wisconsin.