What Are the Rules for Medicaid Qualification (Part 4)? - Allowable Income
As part 3 of our series, your Medicaid planning advisor can best help you determine how the rules apply to your specific circumstances in your specific locality. Before you get into the specifics, however, it’s a good idea to familiarize yourself with the general federal guidelines for Medicaid qualification that apply everywhere.
How much income are you allowed under Medicaid law?
There are different answers for the “community spouse” and the individual who resides in a nursing home.
- Nursing home residents can only keep $60 a month as a personal needs allowance – the rest of their income must go to help cover the cost of their care.
- If the resident is married, the community spouse can keep between $2.288/.75 - $3,435.00 a month (in 2022), including income from the nursing home spouse.
- Many states permit the community spouse to retain all of their individual income without limit. In other states, the community spouse must petition for an additional income if it is needed.
- If the resident has a dependent child living at home with the community spouse, Medicaid may permit an additional allowance.
- Federal law provides any community spouse that has more than the allowable income, may need to contribute up to 25% of the excess toward the institutional spouse’s cost of care. Luckily only a few states enforce this. Check with your Medicaid advisor to see if this situation applies to you.
Give yourself the best opportunity to qualify for Medicaid coverage. Check back, for additional information, as we continue our series - What Are the Rules for Medicaid Qualification? To start at the beginning of our series, click here.
The Cost of Long Term Care Means That Medicaid Can Apply to You, Even if You Currently Believe It Doesn’t
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This article, in our series regarding Medicaid qualification rules, by Michigan lawyer Nicole Wipp and the Family & Aging Law Center PLLC is not, and should not be construed as, legal advice. It is for general informational purposes only. To better understand how this legal concept can be applied to you, consult with an attorney.