Medicaid uses a five-year “look-back” period when evaluating applications. The look-back rule allows Medicaid to review your finances for the five-year period leading up to your application. Any asset transfers made during that time period for less than fair market value may trigger an eligibility waiting period. The length of the waiting period is determined by dividing the amount of your excess assets by the average monthly cost of LTC in your area. For example, if you transferred an asset valued at $90,000, your assets exceed the limit by $88,000. If the average monthly cost of LTC in your area is $8,000, you would divide $88,000 by $8,000 which gives you a waiting period of 11 months. During the waiting period, you will be expected to rely on your own assets to cover your LTC expenses.