Updated August 26, 2026. Quick answer: TennCare’s manual divides by the average daily private-pay rate in effect at the later of the application date or the date of transfer, and prints that rate: $295.87 a day ($8,846.10 a month) from 01/01/2026.
Same question in other states: Missouri Medicaid Transfer Penalty Divisor, Nevada Medicaid Transfer Penalty and North Carolina Medicaid Transfer Penalty Divisor.
What Tennessee publishes
Tennessee prints the rate in the same subsection: $295.87 a day ($8,846.10 a month) effective 01/01/2026, with earlier years listed ($286.00 a day for 2025, $274.00 for 2024). The method and timing rule are below.
How the penalty period is calculated
- To determine the penalty period, divide the uncompensated value of the transferred assets by the average daily private-pay rate for nursing-facility care.
- The rate used is the one at the time of application for TennCare Medicaid or the date of transfer, whichever is later.
Once you have the rate that applies to your date, the Medicaid penalty period calculator does the arithmetic. This page is the Tennessee rate record; the calculator is the class parent.
What this page does not settle
- The policy states the method, the timing rule and the daily rate: $295.87 a day from January 1, 2026.
- Use the row for the controlling date; the table lists a separate rate for each calendar year.
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
TennCare Aged, Blind and Disabled Manual, Policy 125.010, Transfer of Assets and Penalty Periods — retrieved and checked against the state text on August 26, 2026.
A look-back review is a poor moment to discover the health directive was never executed properly, and Tennessee’s advance directive requirements set out the number of witnesses Tennessee requires and whether notarization is offered as an alternative.
Related: Tennessee’s Medicaid home equity limit for a single applicant with no spouse or dependent child at home.
Related: Tennessee’s Medicaid Personal Needs Allowance; the amount a nursing-facility resident keeps from their own income each month.
Related: use the Medicaid spend-down calculator to estimate how much you would need to spend down to qualify for long-term-care Medicaid in your state.