MEDICAID: ELIGIBILITY (4 OF 4)
01.Core Concepts
• Medicaid generally does not count the following assets (exempt assets): • Primary residence • Personal property and household belongings • One motor vehicle • Life insurance (face value limits set by state, typically $1,500 - $5,000) • Funds set aside for burial (limits set by state, typically $1,500 - $15,000) • Certain burial arrangements such as pre-need burial agreements • Assets held in specific kinds of trusts • Retirement plan assets that cannot be withdrawn in a lump sum (such as defined benefit pension plans in which a lump sum is not available) 59 MEDICAID: COMMUNITY SPOUSE RESOURCE ALLOWANCE • The spouse not in a nursing home can retain a “community spouse resource allowance.” • The community spouse can retain one half of the couple’s countable assets up to a maximum of $157,920 (in 2025). • Spend down is permitted for: • Paying off debts (e.g., mortgage, credit cards, car loan) • Purchase of a new exempt asset such as a car or home • Payments for home improvements and repairs to a home or car • Pre-payment of funeral and burial expenses • Payments for services under caregiver agreements • Purchase of Medicaid-compliant annuities