There are state-imposed limits on what an individual can have/own to become eligible to receive Medicaid benefits to pay for long-term care in a skilled nursing facility. Here are the details:
Resource (or Asset) Limit: $2000
- The maximum amount of assets/resources an individual can own in their name to be eligible for Medicaid
- Almost everything counts toward the resource limit. Assets include cash, checking or savings accounts, stocks, cash value of a life insurance policy, collectibles, time-shares, real estate, farmland, IRAs, mutual funds, CDs, mobile homes, boats, trailers, businesses, annuities, and others.
Exempt Resources
Above and beyond $2,000, the individual may keep certain assets, called exempt assets:
- One House (The state will put a lien on the house and will request repayment after death of the Medicaid recipient.)
- One Car
- Life Insurance: up to a limit of $1,500 cash value**
- Term Life Insurance: life insurance with no cash value
- Funeral Plan: if it is irrevocable (**Can only have one or the other as an exempt asset, either cash value in life insurance or an irrevocable funeral plan.)
- Burial Plot
Income Limit
- There is no income limit in Kansas for NURSING HOME Medicaid so long as their income is lower than their cost of care at the Medicaid rate.
- Single individuals may NOT keep income to pay for utilities or other bills at home.
- Individuals can keep a personal needs allowance ($62 in 2025) from income.
- Individuals can also keep health insurance monthly premium amount(s) from income.
- All other income MUST be paid to the nursing home = Patient Obligation
Problem Areas Requiring Legal Assistance
- Married individuals who need a Division of Assets
- Gifts or other transfers of assets including
- Gifts made in the last 5 years
- Any gifts of money or assets above $150
- Transfers = Re-titling assets in the name of others
- Farms/businesses/vacation property/time-shares
- Loans
- Annuities
- Children with a disability
- Caregiver Children – Nursing home resident had a child living in their home recently who provided care.
Yes, eligibility requirements can be complex and do vary by state. It is best to seek the advice of an elder care attorney who has expertise with the state Medicaid program for which you would like to qualify.
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