How do I figure out the penalty divisor?

How do I figure out the penalty divisor?

Short answer: Each state sets its own divisor, usually based on the average monthly cost of private nursing home care in the state. Our state guides list the 2026 figure for each state.

Figures change periodically. Double-check current amounts before relying on them.

The penalty divisor turns the value of a gift into a number of months (or days) of penalty:

Federal law requires the divisor to reflect the average monthly cost of private-pay nursing facility care in the state (or community) at the time of application. Each state publishes its own figure and updates it periodically, often yearly. Some states publish a daily rate instead of a monthly one; a few use different figures for different regions.

Example. A father gave $36,000 to his children. His state’s monthly divisor is $9,000. The penalty is $36,000 / $9,000 = 4 months.

Where to find it:

  • Our state guides list each state’s 2026 divisor in the “At a glance” table.
  • The penalty calculator includes a table of divisors from our state guides.
  • The state’s eligibility manual or a caseworker can tell you the current figure.

The divisor used is the one in effect when the person applies, not when the gift was made.

Getting help

Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.

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