Ways to Appeal Medicaid Decisions
If you have every reason to believe that Medicaid has been unfair to you by denying you coverage or by penalizing you with a waiting period, then you have recourse through an appeal. One ground on which to base your appeal on is by showing to Medicaid that the penalty they impose would deny you the medical care necessary to sustain your life or your health. This is called the hardship exception. It also includes depriving you of food, clothing, shelter, and other necessities.
Since each state has its own appeals process, they have their own criteria on who gets to be granted Medicaid due to hardship. Federal law, however, requires each state agency handling Medicaid to approve or deny an application within a reasonable amount of time and must inform applicants that they can appeal and how they can do so. If you give permission to the nursing home, they can process the hardship appeal on your behalf.
Another way to appeal is to show to Medicaid that you have every plan of disposing the asset at a fair market value. If you have proof that the asset was transferred without the intent of qualifying for Medicaid then you can also use that in strengthening your appeal. Furthermore, if the asset was given back to you then you can also use that to appeal a Medicaid decision.