In order to be eligible for Medicaid benefits in Texas, a nursing home resident may have no more than $2,000 in “countable” assets.
The spouse of a nursing home resident–called the “community spouse” — is limited to one half of the couple’s joint assets up to $130,380 (in 2021) in “countable” assets. This figure changes each year to reflect inflation. Called the “community spouse resource allowance,” this is the most that a state may allow a community spouse to retain without a hearing or a court order. The least that a state may allow a community spouse to retain is $26,076 (in 2021).
Example: If a couple has $100,000 in countable assets on the date the applicant enters a nursing home, he or she will be eligible for Medicaid once the couple’s assets have been reduced to a combined figure of $52,000 — $2,000 for the applicant and $50,000 for the community spouse.
All assets are counted against these limits unless the assets fall within the short list of “noncountable” assets. These include the following:
- Personal possessions, such as clothing, furniture, and jewelry
- One motor vehicle, regardless of value, as long as it is used for transportation of the applicant or a household member. The value of an additional automobile may be excluded if needed for health or self-support reasons (check your state’s rules).
- The applicant’s principal residence, provided it is in the same state in which the individual is applying for coverage. In some states, the home will not be considered a countable asset for Medicaid eligibility purposes as long as the nursing home resident intends to return home. The principal residence may be deemed noncountable only to the extent their equity is less than $603,000 (in 2021). The house may be kept with no equity limit if the Medicaid applicant’s spouse or another dependent relative lives there.
- Prepaid funeral plans and a small amount of life insurance
- Assets that are considered “inaccessible” for one reason or another
Careful planning, whether in advance or in response to an unanticipated need for care, can help protect your estate while still meeting Medicaid’s strict asset limits. To learn more, consult with your elder law attorney.