down their declared resources before applying for medical assistance, sets forth rules under which an individual's CCRC entrance fee is considered an available resource, requires all states to apply the so-called “income-first” rule to community spouses who appeal for an increased resource allowance based on their need for more funds invested to meet their minimum income requirements, extends long-term care partnership programs to any state, and authorizes states to include home and community-based services as an optional Medicaid benefit when they previously had to obtain a waiver to provide such services. In addition, the legislation incorporates provisions in the original budget bill passed by the Senate closing certain asset transfer "loopholes," among them: The purchase of a life estate will be included in the definition of "assets" unless the purchaser resides in the home for at least one year after the date of purchase. Funds to purchase a promissory note, loan or mortgage will be included among assets unless the repayment terms are actuarially sound, provide for equal payments and prohibit the cancellation of the balance upon the death of the lender. States will be barred from "rounding down" fractional periods of ineligibility when determining ineligibility periods resulting from asset transfers. States will be permitted to treat multiple transfers of assets as a single transfer and begin any penalty period on the earliest date that would apply to such transfers. While the federal law applies to all transfers made on or after the date of enactment (February 8, 2006), it also gives the states time to come into compliance. This gives many people in most states a little time to plan. The deadline for states to enact their own laws varies from state to state, but generally is the first day of the first calendar quarter beginning after the end of the next full legislative session. See also Conyers v. Bush Reconciliation process Enrolled bill rule References External links OneSimpleLoan v. U.S. Secretary of Education Public Citizen v. Clerk Congressional Budget Office estimate for Deficit Reduction Act of 2005 President Signs S.1932, Deficit Reduction Act of 2005 (US gov't news release) Deficit Reduction Act of 2005: Implications for Medicaid (Kaiser Family Foundation) 2005 George W. Bush administration controversies Acts of the 109th United States Congress