Medicaid is a joint federal and state program that helps people with express income and few assets cover health care costs and long-term care costs. But what exactly does depression income and limited resource mean? Can you get Medicaid if you own a dwelling house? Can yous own a auto on Medicaid? What about a life insurance policy?

Many people believe they are ineligible for Medicaid coverage of nursing home costs and doc's bills only because they own property or have some money in the bank. The truth is there are a variety of avails that seniors tin own and nevertheless be eligible. It is merely a matter of learning the rules and making a legal and fiscal program to ensure they are met.

Proceed in mind that each state administers its own unique mix of Medicaid programs and sets its own financial and medical eligibility requirements (within federal parameters) for each. Medicaid considers both income and assets in the financial qualification process, but this article will focus on asset limits.

Medicaid Nugget Limits in 2022

Countable Avails

Generally, a single Medicaid applicant who is 65 or older may go on upwards to $2,000 in countable assets to qualify financially. Medicaid programs consider certain assets to exist exempt or "non-countable" (commonly up to a specific allowable amount). Whatsoever cash, savings, investments and holding that exceed these limits are considered "countable" avails and will count towards an applicant's $ii,000 resources limit.

Keep in mind that states exercise accept some wiggle room when it comes to setting asset limits. For example, a unmarried New York State Medicaid bidder who is blind, disabled or age 65+ is allowed to retain $16,800 in liquid assets. California's Medicaid program, which goes by the proper noun Medi-Cal, will actually begin to phase out the asset test for elderly and disabled individuals this year. On July ane, 2022, the $2,000 asset limit will increase to a whopping $130,000 for an individual applicant. Medi-Cal plans to completely eliminate the nugget test no sooner than 2024.

Limits for married couples are even more complicated and vary past land, Medicaid program, and whether ane or both spouses are applying for Medicaid.

Read: Spousal Impoverishment: Medicaid Spend-Down Rules for Married Couples

Exempt Assets

Master Residence

An bidder's primary residence is exempt if it meets a few fundamental requirements. First, the home must be in the same state in which the owner is applying for Medicaid.

Second, the applicant'south equity value in their domicile (fair market value minus debts if owned singly) must be $636,000 or less, although some states use college limits of upward to $955,000. Medi-Cal, does not enforce a maximum disinterestedness value limit on main residences.

3rd, the bidder must either continue residing in the primary residence or take an "intent to return habitation" if they are hospitalized, recovering at a senior rehabilitation facility or living in a nursing home. If a Medicaid applicant's spouse or dependent child continues living in the home following their move to a nursing dwelling house, then the firm is considered exempt regardless of its value.

Read: Entering a Nursing Home: Will Medicaid Exempt Your Parent's Business firm?

Car

One machine of any current marketplace value is considered a "not-countable" nugget for Medicaid purposes as long as it is used for the transportation of the bidder or some other member of their household.

Funeral and Burial Funds

By and large, Medicaid considers the value of whatever non-refundable pre-paid funeral plan or burial contract exempt. This includes irrevocable funeral trusts (IFTs) in most states. IFT limits vary, but the cap is typically $fifteen,000 or less per spouse. For example, Nebraska sets a max value of $5,372, whereas New York and Michigan are the but ii states that practice not consider IFTs of whatsoever value exempt for Medicaid purposes. Some states too allow applicants to fix bated up to $1,500 in an irrevocable pre-need funeral arrangement and/or a revocable burial fund that is considered an exempt asset.

Property for Cocky-Support

According to federal law, only an applicant'southward equity interest in any existent or personal property that is essential to their self-support is taken into business relationship. Examples include farms, rental properties, equipment and other real estate investments that generate income. Up to $6,000 of an applicant'southward equity interest in the property is exempt from their allowable avails, only merely if the property generates a net annual income of at least six percent of the equity value annually. Any value higher up the $6,000 cap is counted as an asset.

Life Insurance Policies

Both the face value and cash value of life insurance policies tin can touch on Medicaid eligibility. Only the greenbacks value of a life insurance policy owned by an applicant may exist counted, therefore Medicaid ignores all term life insurance policies. Generally, Medicaid exempts whole life insurance policies that total up to $1,500 in confront value for an individual bidder. However, if a policy or policies exceed the confront value limit, and so the cash value of the policy/policies will count towards their nugget limit. Of form, some states permit higher exemption amounts, others allow partial exemptions, while still others enforce limits on a combined full of both life insurance and burial funds.

Seek Assist With Medicaid Application and Spend-Down

Medicaid is a very complex regime plan. Just because a senior'south assets exceed the full general limits listed higher up does non mean they are automatically ineligible for coverage. Unlike states implement slightly different rules and resources limits, and an elder tin can devise a personalized asset spend-down strategy to meet their state's eligibility criteria.

In addition to asset limits, there are many other guidelines for calculating countable income and determining one'south medical need for care and aid. Furthermore, different financial rules apply for married couples. It is recommended to familiarize yourself with these eligibility requirements early on in case you e'er demand to aid an aging loved one utilise for Medicaid (or file an application yourself).

Working with a certified elderberry law attorney who has all-encompassing knowledge of the unique Medicaid program in your state and is well versed in legal and financial Medicaid planning strategies is crucial. In most cases, handling the awarding process without any professional person assistance can consequence in a decision of ineligibility and even a costly Medicaid penalty flow<.

Read: Applying for Medicaid: An Elder Law Attorney Tin can Assist

To come across if you or an aging loved i might qualify for Medicaid to help pay for long-term care or dwelling house and community based services (and to explore potential eligibility for other help programs), visit Benefits.gov to use the Benefit Finder tool.