Medicaid Eligibility & Home

Medicaid is a joint federal and state health-care program that finances long-term nursing home care for people who are aged, blind and/or disabled. Because of the program's stringent financial eligibility requirements, many Medicaid applicants have sold their homes and spent the proceeds in order to qualify for Medicaid. Through Medicaid Eligibility Planning, however, a homeowner can qualify for Medicaid while retaining his home.

Eligibility Limits for Single Homeowners

Single Medicaid beneficiaries in most states can have $500,000 in home equity.

The Medicaid eligibility requirements for homeowners vary from state to state. Most states, however, deny Medicaid eligibility to a single Medicaid homeowner who has more than $500,000 in home equity. A few other states deny Medicaid eligibility to a single homeowner who has more than $750,000 in home equity.

Eligibility Limits for Married Homeowners

The Medicaid eligibility rules differ between single and married homeowners. If a married person applying for Medicaid has a spouse living in the home, the equity in the home is exempt from the Medicaid eligibility limits that apply to single people.

Medicaid Eligibility Planning

If a single person applying for Medicaid has home equity in excess of the Medicaid eligibility limit, denial of Medicaid benefits can be avoided by taking out a mortgage on the home. The mortgage can reduce the amount of equity in the home to the point that it falls within the Medicaid eligibility limit.

References

• "The New York Times;" New Medicaid Rules on Home Ownership; Jay Romano; Feb. 12, 2006

Resources

• Elder Law Answers: Medicaid Rules
• U.S. Department of Health and Human Services: Centers for Medicare and Medicaid Services