MaineCare Gifting Rules: How the 5-Year Look-Back Can Delay Long-Term Care Benefits

If you or someone you love may need MaineCare long-term care benefits, one financial move can make a big impact: transferring assets. MaineCare (Maine’s Medicaid program) reviews transfers and gifts made during the five years prior to an application. If assets were given away or sold for less than fair market value during the look-back period, MaineCare may impose a transfer penalty—meaning coverage of long-term care costs is delayed and the applicant will be responsible for care costs during that time.

Effective June 1, 2026, the penalty divisor—the number used to calculate the length of a MaineCare transfer penalty—increased to $13,339. Here’s how it works:

If you gave away $80,000 within five years of applying for MaineCare long-term care benefits, that gifted amount is divided by $13,339, resulting in a penalty period of 6 months. ($80,000 ÷ $13,339 = 5.99)

IMPORTANT: Some transfers are not penalized, specifically including transfers between spouses and transfers to a child with disabilities. Other gifts such as tax-exempt gifting to children or below-market transfers to family members or others will result in a penalty.

Before making gifts or transferring property, take time to get the right advice. MaineCare rules are complex and a misunderstanding or mistake can cause months of uncovered care costs. Speaking with an experienced elder law attorney early can help families understand their options, avoid costly surprises, and protect access to the care their loved ones may need.