The possibility of needing nursing home care raises difficult questions for couples. Medicare will not pay for long-term custodial care, leaving families to look elsewhere for solutions.
This is where Medicaid plays a vital role because it does cover long-term care. However, many couples worry that qualifying will leave the healthy spouse with little to live on.
Fortunately, the rules include protections to prevent that outcome. Understanding the guidelines and taking the right steps in advance can give you peace of mind long before a crisis arises.
Medicaid Basics for Married Couples
Medicaid distinguishes between two roles: the spouse who needs nursing home care, called the “institutionalized spouse,” and the spouse who continues to live at home, called the “community spouse.”
Federal law requires states to apply spousal impoverishment protections so the community spouse can keep a fair share of the couple’s resources.
In Connecticut, those protections follow federal standards but also include state-specific adjustments to account for higher housing costs.
Community Spouse Resource Allowance (CSRA)
The most important rule relates to countable assets such as bank accounts, investments, and other financial property.
The community spouse is allowed to keep half of the couple’s combined countable resources up to the federal maximum. For 2025, that maximum is $157,920, and the minimum is $31,584.
Connecticut adds another safeguard. Even if half the assets fall below the minimum standard, the community spouse may keep at least $50,000. This floor provides additional protection for couples with modest savings.
Home Ownership Rules
Your home is treated differently from other property. If the community spouse continues to live there, the house is not counted when determining Medicaid eligibility. That means your spouse does not need to sell the family residence to qualify you for care.
If neither spouse is living in the house, then equity limits apply. Most states use the federal standard, but Connecticut recognizes higher real estate values and applies an expanded $1,097,000 home equity cap in 2025.
This higher threshold allows most families to keep their homes while still qualifying for Medicaid.
It is important to remember, however, that Connecticut does have an estate recovery program. After both spouses pass away, the state may seek reimbursement from the estate for benefits paid. Professional planning can help address this concern.
Income Protections for the Community Spouse
Assets are only part of the equation. Income rules also matter. Generally, the institutionalized spouse’s income must go toward nursing home costs. But the community spouse may need some of that income to maintain stability at home.
To address this, Connecticut applies the Monthly Maintenance Needs Allowance (MMNA). As of July 1, 2025, the allowance ranges from a minimum of $2,643.75 up to a maximum of $3,948.00, depending on housing costs.
This means the community spouse can keep enough income each month to meet basic living expenses.
Exempt Assets Beyond the Home
Not everything is counted when determining Medicaid eligibility. Certain assets are exempt, including:
- One automobile
- Household goods and personal belongings
- Prepaid burial arrangements
- Up to $1,500 in whole life and unlimited term life insurance
These items do not affect eligibility, and they provide the community spouse with important practical resources.
Medicaid Trust
An irrevocable, income-only Medicaid trust is one of the most effective planning tools for long-term care. When you place assets such as savings or investments into the trust, you give up direct control of the principal but still receive the income it produces.
That income can provide support while the trust shields the underlying assets from being counted for Medicaid eligibility after the five-year look-back period has passed.
This approach is also valuable when it comes to the family home. As we have touched upon, Medicaid’s estate recovery program can place a claim against the property after both spouses have died.
By transferring the home into the trust, you preserve the residence for your spouse during life and protect it from recovery later. The community spouse may continue to live there, and the property can pass to children or other heirs as you direct.
We Are Here to Help!
When you take the right steps in advance, you can breathe a sigh of relief when it comes to long-term care costs. You can send us a message or call us at 860-548-1000 to set up a consultation at either of our two elder law offices in Westport or Glastonbury, CT.
If you would rather learn more before proceeding, visit our Seminar Schedule Page and sign up to join us at an upcoming seminar.
- Medicaid Planning vs. Crisis Planning: What’s the Difference? - August 6, 2026
- Does the Five-Year Medicaid Look-Back Apply to Home Ownership Transfers? - July 21, 2026
- What Is Estate Tax Exclusion Portability? - June 25, 2026
Do You Need a Will If You Have a Living Trust?
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