If you are considering qualifying for Medicaid, perhaps for your immediate family to pay for a nursing home admission of a spouse or for a parent needing care, it is helpful to know what numbers that the case worker at the Department of Human Services will be considering. Below is a summary of the some of the important 2024 Medicaid Standards:
MEDICAID INCOME PENSION TRUST
If the person to be institutionalized person has gross income of $2,829 or less per month, they will income qualify for Medicaid. But, it the institutionalized person has gross income between $2,829 and $6,833 per month, then anything in that gap can be placed in a Medicaid Income Pension Trust. The moment that occurs, the institutionalized person will income qualify. If gross income exceeds $6,833 per month, the individual will not income qualify. It is sometimes possible to divert pension income through a qualified domestic relations order and make the institutionalized individual income qualify.
MAINTENANCE STANDARD
Medicaid allows $75 per month of the institutionalized individual’s income to be retained and used for personal use.
MAXIMUM RESOURCES ALLOWED
An institutionalized individual is allowed to have $2,000 of countable resources and no more. An institutionalized couple is allowed to have $3,000 of countable resources and no more. What this is saying is that a small amount of money can be retained in an account for the institutionalized person.
HOME EQUITY MAXIMUM
A home can be protected from a Medicaid lien if a community spouse resides at the home. There is an exception. The equity in the home cannot exceed $713,000. Not a problem for most people wanting to get on Medicaid. It could be a problem if valuable land is attached to and considered to be part of the home, like a family farm or ranch. Special planning, like a Medicaid Shield Trust, should be considered in such a case.
COMMUNITY SPOUSE RESOURCE STANDARDS
Medicaid considers the resources of the institutionalized and community spouse as one. It does not matter if there is a prenuptial agreement or if some of the property is clearly separate property (such as inherited property) or if only in the name of the community spouse. It is all considered as one. The case worker at the Department of Human Services will total the countable resources (excluding exempt ones, such as the home normally) and divide by two. One-half up to $154,140 belongs to the Community Spouse. The other one-half and anything over $154,140 must be spent down to resource qualify for Medicaid. Of course advance planning, such as using a Medicaid Shield Trust, can protect resources from Medicaid spend down. Medicaid establishes a bare minimum of $30,828. If a couple applies for Medicaid and if they only have $30,828 or less of resources, then all of that amount belongs to the Community Spouse.
COMMUNITY SPOUSE INCOME STANDARDS
Medicaid will deem (consider as belonging to the Community Spouse) income from the institutionalized spouse to the Community Spouse if the gross income of the Community Spouse if $3,854. Medicaid follows the name on the check rule. Whose name the income is payable to is considered to be the recipient of the income. If the Community Spouse has gross income of less than $3,854 per month, then Medicaid requires that income from the institutionalized spouse be deemed to the Community Spouse to bring him or her up to $3,854 per month gross income.
SUMMARY
I hope this survey of some of the important Medicaid income and resource standards has been helpful to you. Remember, you are always better off using an elder law attorney skillful in Medicaid law when trouble first appears. Early dementia. Early Alzheimers. Early Parkinstons. And a host of other health mishaps that send spouses and parents to nursing homes. It is usually beneficial to have powers of attorney in place. To sometimes put in place a Medicaid Shield Trust. The cost of the legal services is small compared to the cost of Medicaid spend down. Brent D. Coldiron is an experienced elder law attorney with considerable experience in the area of Medicaid law. Call Brent at 405 478-5655.