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Certified Medicaid Planner Exam CMP QUESTIONS
AND VERIFIED ANSWERS LATEST UPDATE
Exam Coverage Summary - CMP® (Certified Medicaid Planner) Based on the CMP Governing Board's Job Analysis Report and examination blueprint : Topic Area Weight (out of 160 questions) Medicaid Planning Background/Rationale 11 Medicaid Eligibility Assessment & Planning 6 General Asset-Eligibility Rules 13 Community Spouse Asset Rules 11 Asset Eligibility Strategies 16 Divestments 13 Trusts 12 Annuities & Promissory Notes 16 Income Eligibility 17 Homestead & Family Farm 13 Applying for Medicaid 9 Post-Eligibility Issues 8 Estate Recovery 7 Advocacy Opportunities 5 TOTAL 160 Key Exam Facts :
- 160 multiple-choice questions
- 3 hours to complete
- Passing score: 65% (104 correct answers)
- Closed-book, formula sheet provided
- Covers federal & state-specific Medicaid rules
1. A 72-year-old client enters a nursing home and has $180,000 in countable assets. The state's Community Spouse Resource Allowance (CSRA) maximum is $148,620. What is the minimum amount the client must spend down before Medicaid eligibility? A) $0—all assets protected for community spouse B) $31, C) $148, D) $180, Answer: B The institutionalized spouse may transfer up to the CSRA maximum to the community spouse; any amount above that must be spent down. $180,000 - $148,620 = $31,380. 2. Which federal statute provides the primary legal authority for the Medicaid program? A) Title XVIII of the Social Security Act B) Title XIX of the Social Security Act
4. In an income-cap state, a client's monthly income exceeds the Medicaid income limit by $800. What planning tool is typically used to establish eligibility? A) Revocable Living Trust B) Qualified Income Trust (Miller Trust) C) Special Needs Trust D) Intentionally Defective Grantor Trust Answer: B A Qualified Income Trust (Miller Trust) allows excess income to be deposited into the trust, removing it from countable income calculations for Medicaid eligibility. 5. Mr. Johnson applies for Medicaid and owns a primary residence worth $450,000. The state's home equity limit is $688,000. He intends to return home. How is this property treated? A) Fully countable asset—must be sold B) Exempt as long as he intends to return
C) Only exempt if spouse lives there D) Exempt only up to $300, Answer: B The primary residence is generally exempt if the applicant intends to return home, regardless of whether a spouse resides there, subject to state equity caps.
6. A married couple has $250,000 in countable assets. One spouse enters a nursing home. Under spousal impoverishment rules, what is the maximum the community spouse may retain under federal guidelines? A) $50, B) $74, C) $148, D) $250,
B) Prepaying funeral expenses with an irrevocable contract C) Purchasing a new luxury vehicle for the applicant's use D) Making medically necessary home modifications Answer: C Purchasing luxury items for personal use is not a legitimate spend-down expense. Acceptable expenses include debt payments, medical care, home modifications, and irrevocable funeral contracts.
9. A Medicaid-compliant annuity must meet all of the following requirements EXCEPT: A) Irrevocable and non-assignable B) The state Medicaid agency named as remainder beneficiary for at least the amount paid C) Provides for a lump-sum withdrawal option D) Actuarially sound with payments based on life expectancy Answer: C Medicaid-compliant annuities must NOT allow lump-sum withdrawals, which would make the remaining balance a countable asset. They must be actuarially sound and name the state as beneficiary.
10. The "look-back date" for determining the penalty period begins on which date? A) The date of the first asset transfer B) The date the applicant enters a nursing facility C) The date of Medicaid application D) The date that is 60 months before the applicant becomes institutionalized or applies for Medicaid Answer: D The look-back date is defined as the date that is a specified number of months (typically 60) before either the date of institutionalization or the Medicaid application date . 11. A client wants to transfer her home to her son. Which of the following would make this transfer exempt from penalty? A) The son is under age 21 B) The son is a caregiver who lived with her for 2 years
13. A community spouse has monthly income of $1,500, but the Minimum Monthly Maintenance Needs Allowance (MMMNA) for their state is $3,715. What can happen? A) The community spouse must reduce spending B) The institutionalized spouse can transfer income to the community spouse up to the MMMNA C) The community spouse is ineligible for any income protection D) The couple must divorce to protect assets Answer: B The MMMNA ensures the community spouse receives sufficient monthly income; if their own income falls below this amount, excess income from the institutionalized spouse can be allocated to them. 14. Which type of trust allows assets to be removed from countable resources for a disabled individual while still permitting Medicaid eligibility? A) Revocable Living Trust B) First-Party Special Needs Trust (d4A trust)
C) Qualified Personal Residence Trust D) Grantor Retained Annuity Trust Answer: B A First-Party Special Needs Trust (also known as a d4A or self-settled trust) allows disabled individuals under age 65 to place assets into the trust without disqualifying them from Medicaid, but the state must be reimbursed upon death .
15. The penalty divisor used to calculate months of ineligibility is based on: A) The applicant's total income divided by 12 B) The federal poverty level C) The average monthly private-pay cost of nursing home care in the state D) The applicant's Social Security benefit amount Answer: C Each state establishes a penalty divisor equal to the average monthly cost of nursing facility care. This amount is used to convert gifted assets into months of ineligibility.
C) It automatically disqualifies her permanently D) It is exempt because she is over age 70 Answer: B The 60-month look-back period captures transfers made up to five years before application; a $50,00 0 gift requires a penalty calculation regardless of the recipient's relationship .
18. OBRA '93 introduced which important Medicaid planning concept? A) The ability to transfer assets without penalty to any family member B) The "100-day Medicare trap" affecting long-term care coverage C) Elimination of spousal impoverishment protections D) Unlimited gifting allowances Answer: B The Omnibus Budget Reconciliation Act of 1993 added the "100-day Medicare trap," which prevents individuals from using Medicare skilled nursing benefits for more than 100 days before triggering Medicaid long-term care rules .
19. An unmarried client has $30,000 in a checking account and $60,000 in an IRA. The state's individual asset limit is $2,000. How much must be spent down? A) $0—IRA is exempt B) $28, C) $88, D) $90, Answer: C Both checking account ($30,000) and IRA ($60,000) are countable assets. Total $90,000 - $2, allowed = $88,000 spend-down required. 20. What is the primary purpose of a caregiver agreement in Medicaid planning? A) To transfer the home to the caregiver tax-free B) To document that payments to a family caregiver are for services rendered, not gifts
22. Which of the following best describes the "snapshot date" for CSRA calculations? A) The date the applicant first entered the nursing facility B) The date the community spouse's assets are measured to determine protected amounts C) The date of the couple's marriage D) The date of the applicant's 65th birthday Answer: B The snapshot date is the specific point in time (typically the first day of continuous institutionalization) when the couple's assets are assessed to determine the community spouse's resource allowance. 23. Post-Eligibility Treatment of Income (PETI) determines: A) Which assets are exempt from estate recovery B) The portion of the institutionalized spouse's income that must be paid to the facility as "patient pay" C) The look-back period for asset transfers D) The community spouse's eligibility for SSI
Answer: B PETI rules calculate how much of an institutionalized individual's monthly income must be contributed toward the cost of care after Medicaid eligibility is established.
24. The Miller Trust (Qualified Income Trust) must contain which specific provision to be valid? A) The state must be named as the sole trustee B) The trust must be revocable at any time C) The trust must contain a "payback" provision to the state upon the death of the beneficiary D) The trust must be funded with life insurance proceeds only Answer: C A valid Miller Trust requires a provision that any remaining funds in the trust upon the beneficiary's death be paid to the state Medicaid agency up to the amount of benefits paid. 25. A client owns a life insurance policy with a $7,000 cash surrender value and $15,000 face value. The state's exempt limit for life insurance cash value is $2,500. How is this treated for eligibility?
Answer: C CMS (Centers for Medicare & Medicaid Services) is the federal agency responsible for overseeing state Medicaid programs and ensuring compliance with federal requirements.
27. A couple has $300,000 in jointly held countable assets. One spouse enters a nursing home. What is the minimum amount the community spouse is entitled to retain under spousal impoverishment rules? A) $ B) One-half of the assets ($150,000) up to the CSRA maximum C) The full $300, D) Only $2, Answer: B The community spouse is generally entitled to at least one-half of the couple's countable assets, subject to the state's minimum CSRA (typically around $30,000) and maximum CSRA (currently $148,620).
28. The term "divestment" in Medicaid planning refers to: A) Investing in retirement accounts B) Giving away or selling assets for less than fair market value C) Converting assets to income streams D) Paying for medical expenses Answer: B A divestment is any transfer of assets for less than fair market value, which may trigger a penalty period if made during the look-back period. 29. Which of the following would NOT be considered a countable resource for Medicaid eligibility? A) A rental property generating $2,000 monthly income B) Household furniture and personal effects of reasonable value C) A second vehicle worth $25, D) A certificate of deposit with a $10,000 balance
