Medicaid Policy
Medicaid Policy
Contact DHHS Policy Specialist for Previous Policy (373 renumbered to 573 as of November 1, 2017)
The asset limit for single individuals is $2000. Count only the assets that belong to the individual.
The asset limit for the spouse in the institution is $2000. Use the rules in sections 573-1 through 573-6 to determine asset eligibility for an institutionalized spouse who has a spouse in the community.
The rules allow the community spouse to keep additional assets. The rules protect a person whose spouse goes into an institution from having to deplete the couple's assets for the institutionalized spouse to qualify for Medicaid.
Spousal impoverishment rules also apply to certain waiver-eligible individuals. Refer to the specific waiver policies to decide how to treat assets of a married couple.
If both spouses are in medical institutions and are applying for Medicaid, determine the assets held in each person's name. Count resources held in only one person's name as available to that person. Divide jointly-held resources equally between the couple. Countable resources for each person must not exceed $2000 to be eligible for Medicaid.
If only one spouse is applying for Medicaid for nursing home services, and the other spouse is a resident of a medical institution, the spousal impoverishment policy in 573 does not apply. Determine whose name is on the resources. Count only the resources held in the name of the individual who is applying for Medicaid, plus 1/2 of any jointly-held resources to decide if the individual passes the resource limit. The applicant may transfer assets to his or her spouse without penalty. See section 575-3 for policy on acceptable transfers. The spouse who is not applying for Medicaid cannot transfer assets without affecting the other spouse's eligibility (575).