Updated August 27, 2026. Quick answer: Michigan divides the uncompensated value of a divestment by $12,216 a month for a baseline date in calendar year 2026. The state calls this the average monthly private LTC Cost, not a divisor.
The figure Michigan publishes
| What the state lists | Figure |
|---|---|
| Baseline date in 2026 | $12,216 per month |
| Baseline date in 2025 | $11,842 per month |
| Baseline date in 2024 | $10,871 per month |
| Baseline date in 2023 | $9939 per month |
| Baseline date in 2022 | $9880 per month |
How the penalty period is calculated
- Divide the total uncompensated value by the average monthly private LTC Cost for the client’s baseline date. That gives the number of full months in the penalty period.
- Multiply the fraction remaining by 30 to get the extra days, so a Michigan penalty is expressed in whole months plus days.
- The rate is chosen by the baseline date, so an older baseline date keeps the older figure rather than the current one.
Once you have the figure above, the Medicaid penalty period calculator does the arithmetic. This page is the Michigan rate record; the calculator is the class parent.
Get a second opinion before money or property moves
Transfers are the part of this system that is hardest to undo, so it is worth having someone look at the timing and at what else the household holds before a gift, a sale or a deed is made final.
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What this page does not settle
- Michigan’s manual sets no maximum penalty length.
- The figure above is the 2026 row of a ten-year table; the manual lists rates back to 2017, and only the five most recent are reproduced here.
- Michigan calls this divestment rather than a transfer penalty, and the manual never uses the word divisor.
Eligibility is decided by the state agency on the whole file, not by this one number. Nothing here is legal advice, and no one should transfer, retitle or give away property on the strength of a worksheet.
Source
Michigan Bridges Eligibility Manual, BEM 405, MA Divestment, BPB 2026-007, effective 4-1-2026 — retrieved and checked against the state text on August 27, 2026.
The penalty divisor governs transfers, not eligibility. For the income side, see Michigan’s Medicaid nursing-home income test, which gives the figure or mechanism and the state regulation it comes from.
Related: Michigan’s Medicaid home equity limit for a single applicant with no spouse or dependent child at home.
Related: Michigan’s Medicaid Personal Needs Allowance; the amount a nursing-facility resident keeps from their own income each month.