Modern Estate Planning Blog

For millions of seniors nationwide, Medicaid provides a safety net for people who find themselves requiring long-term care. Most Americans aged 65 and older – roughly 70 percent – will need these kinds of services in their later years, according to research. Meanwhile, the cost of long-term care has been rising with every passing year. In 2023, the national median cost for a semi-private room in a nursing home reached nearly $9,000 a month.

Medicaid (Medi-Cal) Coverage

Run jointly by the federal and state governments, Medicaid – which sometimes goes by other names, depending on your state – provides health insurance to low-income populations. If you need to seek Medicaid coverage for long-term care, you may be aware that you must meet strict income and resources limits to qualify. In most states (but not California, which has no asset limit), you cannot have more than $2,000 in “countable” assets to your name to receive these benefits.

So, what happens if you are married? Does your healthy spouse have no choice but to live in poverty? Fortunately, no – states permit the healthy spouses of Medicaid applicants to retain a certain amount in resources to protect them from becoming impoverished.

Community Spouse Resource Allowance for 2025

Each year, the Centers for Medicare & Medicaid Services (CMS) issues updated Community Spouse Resource Allowance (CSRA) figures. These CMS guidelines outline how much of the couple’s assets the healthy spouse can keep while their Medicaid spouse gets the long-term care support they need. Generally, the CSRA increases each year.

Starting January 1, 2025, a spouse who lives at home while their partner receives Medicaid long-term care benefits can retain up to $157,920 in assets (an increase from $154,140 in 2024). Some states apply a maximum CSRA as well as a minimum CSRA. Under federal law, the minimum CSRA in 2025 will be $31,584. State Medicaid programs can then set their own limits within these federal guidelines.

Monthly Maintenance Needs Allowance for 2025

If you receive long-term care benefits through Medicaid while your healthy spouse continues residing at home, you may feel better knowing that your partner can also keep a minimum amount of income each month. The federal government calls this their monthly maintenance needs allowance (MMNA). In 2025, the maximum MMNA will be $3,948 (an increase from $3,853.50 in 2024).

Work With an Elder Law Attorney

The rules for Medicaid can quickly become complex and often vary widely by state. To ensure that you are pursuing the best coverage options for your situation, speak with a qualified elder law attorney in your area.

You may also want to learn more about Medicaid by referring to the following articles:

• Spending Down Assets to Qualify for Medicaid
• How Does the Medicaid Lookback Period Work?
• Medicaid Long-Term Care: How Does Medicaid Treat Income?
• Transferring Assets to Qualify for Medicaid

Navigating Medicaid and its complex rules can be overwhelming, especially when you're planning for long-term care and protecting your spouse’s financial security. At Chubb Law Firm, PC, we specialize in elder law and can help you understand the ins and outs of Medicaid eligibility and the Community Spouse Resource Allowance. Let us guide you through the process, ensuring that you secure the best options for your unique situation. Contact Chubb Law Firm PC at (916) 241-9661 today to schedule a consultation and safeguard your future.

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