To qualify for the Medicaid program as a senior citizen you must have countable assets that do not exceed a certain very modest limit. In most states this limit is $2000. However, the word “countable” is quite operative here because some of your most valuable possessions don’t count.
And, if you are married your spouse can keep a significant portion of the countable assets if you were to seek Medicaid eligibility.
Though you may retain ownership of your home and still gain eligibility for Medicaid there is an upper equity limit that you must stay within. This limit was $525,000 in 2012, but this year it has been raised to $536,000.
It should be noted that Medicaid is a jointly administered federal-state program. Different states have different economic realities so each state is granted some flexibility regarding the limits.
In 2013 $536,000 is the minimum equity limit, but each individual state has the option of raising this limit to as much as $802,000.
The other Medicaid limit increase that we would like to highlight here is the portion of the countable community assets that the healthy spouse may keep.
This figure is also flexible depending on the decisions that are made by each individual state. The healthy spouse may keep his or her half of shared assets up to a maximum of $115,920 in 2013. This is an increase over the 2012 figure of $113,640.
States may impose a lower limit should they choose to do so, but the minimum allowable amount that the healthy or community spouse may keep in 2013 is $23,184.
Medicaid is very important for many seniors because Medicare won’t pay for long-term care.
We have prepared a very informative report on the subject of Medicaid planning, and we are offering it to our readers free of charge. Click this link to obtain access: Free Medicaid Planning Report