CMP CERTIFIED MEDICAID PLANNER EXAM COMPLETE
QUESTIONS AND 100% VERIFIED ANSWERS (PASS
GUARANTEE)
1. Medicaid is a joint program funded by:
A. The federal government only
B. State governments only
C. Both federal and state governments
D. Private insurance companies
Answer: C
Explanation: Medicaid is jointly funded by the federal and state governments.
The federal government sets baseline requirements, while each state administers
its own program within those guidelines.
2. The primary purpose of Medicaid planning is to:
A. Maximize tax refunds
B. Protect assets while qualifying for Medicaid benefits
C. Increase Medicare coverage
D. Avoid all healthcare costs
Answer: B
Explanation: Medicaid planning helps clients qualify for benefits while
preserving as much of their assets as allowed by law.
3. Which type of care is most often covered under Medicaid long-term care
benefits?
A. Cosmetic surgery
B. Skilled nursing facility care
,C. Elective outpatient surgery
D. Chiropractic treatment
Answer: B
Explanation: Medicaid primarily assists with long-term skilled nursing facility
care and, in many states, home and community-based care.
4. The look-back period for asset transfers in most states is:
A. 12 months
B. 24 months
C. 36 months
D. 60 months
Answer: D
Explanation: Medicaid’s federal look-back period is 60 months (5 years)
before application to detect disqualifying transfers.
5. A “penalty period” refers to:
A. The time a person is disqualified from Medicaid after improper asset
transfers
B. The time before initial application
C. The time benefits are doubled
D. None of the above
Answer: A
Explanation: The penalty period is the duration an applicant is ineligible for
Medicaid due to uncompensated transfers of assets within the look-back period.
6. Which of the following assets is typically exempt under Medicaid?
A. Cash savings
B. Primary residence (up to equity limits)
C. Stocks and bonds
D. Vacation property
Answer: B
Explanation: The applicant’s primary residence is generally exempt up to a
,state-specified home equity limit, provided certain residency requirements are
met.
7. Which income is countable for Medicaid eligibility?
A. Pension payments
B. Food stamps
C. Certain home energy assistance
D. Non-taxable veteran’s benefits
Answer: A
Explanation: Regular pension payments are countable income; some benefits
like food stamps or specific veteran stipends may be excluded.
8. The term “Community Spouse” refers to:
A. A spouse residing in a nursing home
B. A spouse still living in the community while the other receives long-term
care
C. An unmarried partner
D. A dependent child
Answer: B
Explanation: The “community spouse” is the healthy spouse living
independently while the other spouse applies for Medicaid long-term care.
9. The Community Spouse Resource Allowance (CSRA) allows:
A. All assets to be kept by the community spouse
B. The community spouse to retain a portion of the couple’s countable assets
C. No assets to be kept
D. Exemption only for vehicles
Answer: B
Explanation: The CSRA protects a portion of a couple’s assets for the
community spouse to prevent impoverishment.
, 10. Which of the following is not typically part of Medicaid estate
recovery?
A. Claims against assets remaining after the beneficiary’s death
B. Recovery from a living spouse’s estate while alive
C. Liens on real estate
D. Repayment for long-term care costs
Answer: B
Explanation: Medicaid cannot recover from a surviving spouse’s estate until
after that spouse’s death.
11. Medicaid differs from Medicare primarily in that:
A. Medicaid is income-based, Medicare is age/disability-based
B. Medicaid is private, Medicare is public
C. Both are age-based
D. Medicare covers long-term custodial care
Answer: A
Explanation: Medicaid eligibility is need-based, while Medicare eligibility is
based on age or disability.
12. A Qualified Income Trust (Miller Trust) is used when:
A. The applicant’s assets exceed limits
B. The applicant’s income exceeds Medicaid’s income cap
C. The applicant has no income
D. None of the above
Answer: B
Explanation: A Miller Trust allows excess income to be placed in a trust so
that the applicant can qualify under income-cap rules.
13. The purpose of a Medicaid-compliant annuity is to:
A. Avoid taxes
B. Convert countable assets into an income stream for the community spouse
QUESTIONS AND 100% VERIFIED ANSWERS (PASS
GUARANTEE)
1. Medicaid is a joint program funded by:
A. The federal government only
B. State governments only
C. Both federal and state governments
D. Private insurance companies
Answer: C
Explanation: Medicaid is jointly funded by the federal and state governments.
The federal government sets baseline requirements, while each state administers
its own program within those guidelines.
2. The primary purpose of Medicaid planning is to:
A. Maximize tax refunds
B. Protect assets while qualifying for Medicaid benefits
C. Increase Medicare coverage
D. Avoid all healthcare costs
Answer: B
Explanation: Medicaid planning helps clients qualify for benefits while
preserving as much of their assets as allowed by law.
3. Which type of care is most often covered under Medicaid long-term care
benefits?
A. Cosmetic surgery
B. Skilled nursing facility care
,C. Elective outpatient surgery
D. Chiropractic treatment
Answer: B
Explanation: Medicaid primarily assists with long-term skilled nursing facility
care and, in many states, home and community-based care.
4. The look-back period for asset transfers in most states is:
A. 12 months
B. 24 months
C. 36 months
D. 60 months
Answer: D
Explanation: Medicaid’s federal look-back period is 60 months (5 years)
before application to detect disqualifying transfers.
5. A “penalty period” refers to:
A. The time a person is disqualified from Medicaid after improper asset
transfers
B. The time before initial application
C. The time benefits are doubled
D. None of the above
Answer: A
Explanation: The penalty period is the duration an applicant is ineligible for
Medicaid due to uncompensated transfers of assets within the look-back period.
6. Which of the following assets is typically exempt under Medicaid?
A. Cash savings
B. Primary residence (up to equity limits)
C. Stocks and bonds
D. Vacation property
Answer: B
Explanation: The applicant’s primary residence is generally exempt up to a
,state-specified home equity limit, provided certain residency requirements are
met.
7. Which income is countable for Medicaid eligibility?
A. Pension payments
B. Food stamps
C. Certain home energy assistance
D. Non-taxable veteran’s benefits
Answer: A
Explanation: Regular pension payments are countable income; some benefits
like food stamps or specific veteran stipends may be excluded.
8. The term “Community Spouse” refers to:
A. A spouse residing in a nursing home
B. A spouse still living in the community while the other receives long-term
care
C. An unmarried partner
D. A dependent child
Answer: B
Explanation: The “community spouse” is the healthy spouse living
independently while the other spouse applies for Medicaid long-term care.
9. The Community Spouse Resource Allowance (CSRA) allows:
A. All assets to be kept by the community spouse
B. The community spouse to retain a portion of the couple’s countable assets
C. No assets to be kept
D. Exemption only for vehicles
Answer: B
Explanation: The CSRA protects a portion of a couple’s assets for the
community spouse to prevent impoverishment.
, 10. Which of the following is not typically part of Medicaid estate
recovery?
A. Claims against assets remaining after the beneficiary’s death
B. Recovery from a living spouse’s estate while alive
C. Liens on real estate
D. Repayment for long-term care costs
Answer: B
Explanation: Medicaid cannot recover from a surviving spouse’s estate until
after that spouse’s death.
11. Medicaid differs from Medicare primarily in that:
A. Medicaid is income-based, Medicare is age/disability-based
B. Medicaid is private, Medicare is public
C. Both are age-based
D. Medicare covers long-term custodial care
Answer: A
Explanation: Medicaid eligibility is need-based, while Medicare eligibility is
based on age or disability.
12. A Qualified Income Trust (Miller Trust) is used when:
A. The applicant’s assets exceed limits
B. The applicant’s income exceeds Medicaid’s income cap
C. The applicant has no income
D. None of the above
Answer: B
Explanation: A Miller Trust allows excess income to be placed in a trust so
that the applicant can qualify under income-cap rules.
13. The purpose of a Medicaid-compliant annuity is to:
A. Avoid taxes
B. Convert countable assets into an income stream for the community spouse
