Before we look at the Medicaid Community Spouse Resource Allowance, we should explain why Medicaid could be relevant to you, even if you will qualify for Medicare at the age of 65.
Most people are aware of the fact that Medicaid is a government run health insurance program that is in place to provide coverage for people with very limited financial resources. If you are going to qualify for Medicare, you would not need Medicaid at first, and you probably wouldn’t qualify if you have resources.
In spite of the above, many elders do seek Medicaid eligibility late in their lives, even if they were never poor. This is because Medicaid will pay for long-term care. Nursing homes and assisted living communities are very expensive, and Medicare will not help with custodial care.
Though there is a $2000 limit on countable assets for an individual, when someone who is married is applying for Medicaid to pay for long-term care, the healthy spouse can keep a certain store of assets that are technically countable for Medicaid purposes.
Community Spouse Resource Allowance
Now that we have appropriately set the stage, we can look at the Medicaid Community Spouse Resource Allowance. The healthy spouse who can still live independently is referred to as the community spouse in this context. The Medicaid Community Spouse Resource Allowance equates to half of the couple’s shared countable assets.
We practice law in the state of New York. Since the Medicaid program is jointly administered by the federal government along with each respective state government, the individual states have some latitude with regard to how they choose to administer the program. In our state, the maximum Community Spouse Resource Allowance in 2015 is $119,220.
There is also a minimum Community Spouse Resource Allowance that allows the healthy spouse to keep a certain amount at minimum, even if this amount is more than half of the shared countable assets. The minimum allowance in New York during the current calendar year is $74,820.
Medicaid Planning Report
Medicaid pays for most of the long-term care that seniors are receiving in the United States, so this is a program that is relevant to a wide range people. As you are looking ahead toward your senior years, you should certainly understand the lay of the land when it comes to long-term care and Medicaid planning.
We have prepared an in-depth special report that will provide you with a solid foundation of information about the Medicaid program as it applies to long-term care for seniors. This report is free, so you can build on your knowledge without incurring any expenses.
To obtain your copy of the comprehensive report, visit this page and follow the simple instructions: Free Report on Medicaid Planning.
- Special Needs Planning and Medicaid Recovery - March 21, 2019
- Have You Considered a Living Trust? - March 12, 2019
- How Do You Qualify for Medicaid? - March 7, 2019
Leave a Reply