Medicaid Planning

MEDICAID INCOME AND ASSET QUALIFICATION 2015

  1. The gross monthly income for the spouse in need of institutional care cannot exceed $2199.00. In determining the gross monthly income, the spouse is allowed to retain a monthly personal needs allowance of $105.00
  2. The non-exempt assets of the spouse in need of institutional care cannot exceed $2000.00.
    1. Examples of non-exempt assets are checking accounts, savings accounts, brokerage accounts, certificates of deposit, stocks and bonds U.S. savings bonds, real estate that is non-homesteaded, life insurance with cash values exceeding $2500, boats, loans, annuities, IRAs not making regular payments.
    2. Examples of exempt assets are marital home, motor vehicle, personal property, term life insurance, life insurance owned by the community spouse with a face value of less than $2500, burial plans that are irrevocable in any amount, income producing property (the asset is exempt but the income from the property is included in the monthly income of the spouse in need of institutional care.
  3. The spouse remaining in the community may retain up to $119.200 in non-exempt assets.
  4. There is no limit on the monthly gross income of the spouse remaining in the community. If the gross income is less than $1966, a portion of the gross monthly income of the spouse in need of institutional care may be diverted to the spouse remaining in the community up to $2981 per month.
    1. The spouse remaining in the community is entitled to what is called excess shelter cost. The excess shelter cost is the amount by which the community spouse’s shelter costs exceeds $590.00 per month. Shelter costs include rent or mortgage payment, homeowner’s insurance, condo maintenance fees.
    2. The spouse remaining in the community is also allowed a monthly utility allowance of $337 per month.
    3. The total amount of diverted gross income and excess shelter credit and utility allowance cannot exceed $2981 per month.